| US and Foreign Stocks | 1 mo | 3 mo | YTD | 1 yr | 2 yr | 3 yr | 5 yr | 10 yr |
| S&P 500 | 4.5% | 5.3% | 4.5% | 4.2% | 12.8% | 19.2% | 0.3% | 3.5% |
| MSCI EAFE | 5.3% | -0.8% | 5.3% | -9.6% | 2.1% | 13.4% | -3.9% | 5.8% |
| Barclays Aggregate Bond--US | 0.4% | 2.2% | 0.4% | 10.3% | 7.2% | 5.1% | 6.9% | 5.7% |
| Barclays Aggregate Bond--Global | 1.7% | 0.6% | 1.7% | 7.2% | 6.3% | 7.8% | 7.0% | 7.4% |
| Moderately Aggressive Benchmark | 4.1% | 2.1% | 4.1% | -0.4% | 7.6% | 14.7% | 0.3% | 5.4% |
| 80 Flex III | 4.2% | 2.0% | 4.2% | 3.0% | 8.7% | |||
| 80 Flex II | 5.0% | 2.2% | 5.0% | 4.5% | 9.7% | 16.4% | 7.8% | 11.2% |
| 80 Fidelity | 4.4% | 2.7% | 4.4% | -0.9% | 7.8% | 15.1% | 0.2% | 5.3% |
| Moderate Benchmark | 3.4% | 1.9% | 3.4% | 2.0% | 7.6% | 12.8% | 2.2% | 5.9% |
| 60 Flex III | 4.1% | 2.1% | 4.1% | 3.5% | 8.3% | |||
| 60 Flex II | 4.7% | 2.2% | 4.7% | 4.6% | 9.0% | 14.7% | 8.1% | 10.7% |
| 60 Fidelity | 3.5% | 2.3% | 3.5% | 1.1% | 7.3% | 12.9% | 1.7% | 5.4% |
| Moderately Conservative Benchmark | 2.6% | 1.8% | 2.6% | 4.4% | 7.5% | 10.8% | 4.0% | 6.2% |
| 40 Flex III | 3.9% | 2.2% | 3.9% | 3.9% | 7.8% | |||
| 40 Flex II | 4.4% | 2.3% | 4.4% | 4.7% | 8.3% | 13.1% | 8.5% | 10.1% |
| 40 Fidelity | 2.6% | 2.1% | 2.6% | 3.4% | 7.0% | 10.9% | 3.1% | 5.5% |
| Asset Allocation | Cash | Stock | Bond | Other | ||||
| 80 Flex II | 23% | 54% | 12% | 11% | ||||
| 60 Flex II | 30% | 40% | 21% | 9% | ||||
| 40 Flex II | 37% | 27% | 29% | 7% |
An investing and financial strategies blog offered by Gary Partoyan, veteran financial advisor and owner of Potomac Wealth Strategies, LLC.
Saturday, February 11, 2012
Flex Portfolio Performance Through January 2012
Here is how the most popular Flex portfolios have performed and are allocated:
Wednesday, January 11, 2012
Flex Portfolio Performance Through December 2011
The broad market for U.S. stocks closed +2% for the year, despite all the volatility and anxiety. Much of the anxiety came from overseas--Europe's debt and potential banking crises, natural and industrial catastrophe in Japan, uprising in the Middle East--and the broad market for non-U.S. developed market stocks was down -12% for the year.
The Flex portfolios, being globally diversified, took some hits and lagged the U.S. stock market, but they performed pretty closely to their benchmarks. And their 2-yr and longer track records are quite favorable relative to their benchmarks. In addition to favoring the "Flex portfolio" concept, I am pleased overall with the performance of these portfolios.
Most of my clients should continue to use a Flex portfolio for their core holdings.
* 80 Fidelity is a portfolio of very popular and widely-available index funds from Fidelity Investments allocated in a 80% stocks, 20% bonds strategy similar to that of the 80 Flex portfolios, and I want to compare the two; the 80 Fidelity portfolio uses a style-pure, buy-hold-rebalance method, while the 80 Flex portfolio allows for a great deal of tactical adjustments within the 80% stock long-term strategy.
** Not all Flex III funds were available for the full 3-, 5- and 10-year periods, but all Flex II funds were.
Approximate Stock-Bond-Cash-Alternative allocation as of 12/31/11 or most recently provided:
80 Flex III: 33-26-27-14
60 Flex III: 25-32-32-11
40 Flex III: 16-37-38-9
For long-term investors, I firmly believe a well diversified portfolio using "strategic asset allocation" but implemented with global and/or flexible mutual funds is a much better way to invest than trying to "time" the market.
Thank you, and make it a great 2012!
--Gary Partoyan
Potomac Wealth Strategies, LLC
www.PotomacWealthStrategies.com
The Flex portfolios, being globally diversified, took some hits and lagged the U.S. stock market, but they performed pretty closely to their benchmarks. And their 2-yr and longer track records are quite favorable relative to their benchmarks. In addition to favoring the "Flex portfolio" concept, I am pleased overall with the performance of these portfolios.
Most of my clients should continue to use a Flex portfolio for their core holdings.
Here are the performance #s through December 2011:
| US and Foreign Stocks | 1 month | 3 month | YTD | 2 year | 3 year | 5 year | 10 year |
| S&P 500 | 1.0% | 11.8% | 2.1% | 8.4% | 14.0% | -0.3% | 2.9% |
| MSCI EAFE | -1.0% | 3.3% | -12.1% | -2.7% | 7.7% | -4.7% | 4.7% |
| Moderately Aggressive Benchmark | 0.2% | 6.2% | -2.5% | 3.9% | 10.1% | -0.3% | 4.7% |
| 80 Flex III | -1.3% | 2.8% | -2.9% | 4.7% | n/a | n/a | n/a |
| 80 Flex II | -1.6% | 4.2% | -0.5% | 6.4% | 12.9% | 6.9% | 10.7% |
| 80 Fidelity | -0.3% | 6.5% | -3.3% | 3.8% | 10.1% | -0.4% | 4.6% |
| Moderate Benchmark | 0.4% | 4.8% | 0.1% | 4.8% | 9.0% | 1.6% | 5.3% |
| 60 Flex III | -0.7% | 2.5% | -1.9% | 4.9% | n/a | n/a | n/a |
| 60 Flex II | -1.0% | 3.5% | -0.1% | 6.1% | 11.9% | 7.3% | 10.2% |
| 60 Fidelity | -0.1% | 5.1% | -0.9% | 4.4% | 9.2% | 1.1% | 4.8% |
| Moderately Conservative Benchmark | 0.5% | 3.2% | 2.7% | 5.6% | 7.8% | 3.5% | 5.8% |
| 40 Flex III | -0.2% | 2.2% | -1.0% | 5.1% | n/a | n/a | n/a |
| 40 Flex II | -0.4% | 2.9% | 0.2% | 2.9% | 10.8% | 7.6% | 9.7% |
| 40 Fidelity | 0.3% | 3.7% | 1.8% | 5.2% | 8.3% | 2.8% | 5.1% |
* 80 Fidelity is a portfolio of very popular and widely-available index funds from Fidelity Investments allocated in a 80% stocks, 20% bonds strategy similar to that of the 80 Flex portfolios, and I want to compare the two; the 80 Fidelity portfolio uses a style-pure, buy-hold-rebalance method, while the 80 Flex portfolio allows for a great deal of tactical adjustments within the 80% stock long-term strategy.
** Not all Flex III funds were available for the full 3-, 5- and 10-year periods, but all Flex II funds were.
Approximate Stock-Bond-Cash-Alternative allocation as of 12/31/11 or most recently provided:
80 Flex III: 33-26-27-14
60 Flex III: 25-32-32-11
40 Flex III: 16-37-38-9
For long-term investors, I firmly believe a well diversified portfolio using "strategic asset allocation" but implemented with global and/or flexible mutual funds is a much better way to invest than trying to "time" the market.
Thank you, and make it a great 2012!
--Gary Partoyan
Potomac Wealth Strategies, LLC
www.PotomacWealthStrategies.com
Wednesday, December 28, 2011
Flex Portfolio Performance Through November 2011
This continues to be a rough year across the global markets. Given the volatility of the global stock, bond and commodities markets, and the problems in the global economy, I remain strongly in favor of using a global/flexible portfolio and think my Flex portfolio method is the way to go.
So, how did Flex perform? Not as well as I would like, for the second month now. I am considering changes:
So, how did Flex perform? Not as well as I would like, for the second month now. I am considering changes:
- I may replace The Arrow DWA Tactical fund. It is 1/2 of the "growth-oriented" portion of the Flex III portfolios, and it has been underperforming greatly. It seems to just miss the boat right now, despite the great track record of the underlying portfolio methodology. This is likely because it uses an intermediate-term trend-following methodology that really does well over the long-haul but does not react to the kind of short-term volatility we are experiencing now.
- Ivy Asset Strategy is going to stay in the Flex portfolios, despite being on my Watch List lately. This fund is the only hedge fund-like component, and I want that kind of guts and flexibility in this portfolio series. It is invested pretty much fully in growth companies in emerging markets that have had a rough time lately; I am eager to see what happens when that market regains its footing.
Here are the performance #s through November 2011:
| |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| * 80 Fidelity is a portfolio of very popular and widely-available index funds from Fidelity Investments allocated in a 80% stocks, 20% bonds strategy similar to that of the 80 Flex portfolios, and I want to compare the two; the 80 Fidelity portfolio uses a style-pure, buy-hold-rebalance method, while the 80 Flex portfolio allows for a great deal of tactical adjustments within the 80% stock long-term strategy. ** Not all Flex III funds were available for the full 10-year period, but all Flex II funds were. The Stock-Bond-Alternatives-Cash allocation percentages are approximately: 80 Flex III: 43-10-18-29 60 Flex III: 32-20-14-34 40 Flex III: 21-29-11-39 I still believe staying the course with a global/flexible portfolio is a lot better than trying to time the market. Please contact me with your questions or thoughts. Thank you! --Gary (FYI, my own retirement portfolio remains mostly in 80 Flex III.) Garo Linck Partoyan Financial Advisor Potomac Wealth Strategies, LLC (703) 746-8195 Garo.Partoyan@PotomacWealthStrategies.com www.PotomacWealthStrategies.com | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Wednesday, November 9, 2011
Flex Portfolio Performance Through October 2011
After a very difficult 3rd quarter, and an especially rough September, for stock markets, they went way up in October. Since Potomac Wealth Strategies' Flex portfolios are widely diversified, their performance lagged relative to the stock markets. Given the volatility of the markets, and the problems in the global economy, I am still strongly in favor of using a global/flexible portfolio and think Flex is the way to go.
So, how did Flex perform? Not as well as I would like, and there are two culprits: the Arrow DWA Tactical fund has been underperforming, likely because it uses an intermediate-term trend-following methodology that really does well over the long-haul but does not react to the kind of short-term volatility we are experiencing now; and Ivy Asset Strategy (which is much like a hedge fund and is the riskiest fund in the Flex portfolios) has invested fully in growth companies in emerging markets that have had a rough time lately.
What to do? I am considering reducing the exposure to Arrow DWA Tactical for the Flex III portfolios; Flex II does not use this fund and performed significantly better recently, and about the same over the longer periods. I am also in touch monthly with the folks at Ivy Funds--Asset Strategy fund has been performing very well lately (up 14.4% just in October, vs. 10.8% for the S&P 500, and up 2.2% vs. 1.9% so far in November), and I am inclined to stick with it because of its track-record and the potential for great returns.
Here are the performance #s:
For October 2011:
S&P 500: 10.8%
80 Fidelity: 8.3%*
80 Flex III: 4.6%
Trailing Three-months (through 10/31):
S&P 500: -2.5%
80 Fidelity: -5.2%
* 80 Fidelity is a portfolio of very popular and widely-available index funds from Fidelity Investments allocated in a 80% stocks, 20% bonds strategy similar to that of the 80 Flex portfolios, and I want to compare the two; the 80 Fidelity portfolio uses a style-pure, buy-hold-rebalance method, while the 80 Flex portfolio allows for a great deal of tactical adjustments within the 80% stock long-term strategy.
** Not all Flex III funds were available for the full 10-year period, but all Flex II funds were.
The Stock-Bond-Alternatives-Cash allocation percentages are approximately:
80 Flex III: 43-10-18-29
60 Flex III: 32-18-14-36
40 Flex III: 21-26-11-42
I still believe staying the course with a global/flexible portfolio is a lot better than trying to time the market. Please contact me with your questions or thoughts. Thank you!
--Gary
(FYI, my own retirement portfolio remains mostly in 80 Flex III.)
Garo Linck Partoyan
Financial Advisor
Potomac Wealth Strategies, LLC
(703) 746-8195
Garo.Partoyan@PotomacWealthStrategies.com
www.PotomacWealthStrategies.com
So, how did Flex perform? Not as well as I would like, and there are two culprits: the Arrow DWA Tactical fund has been underperforming, likely because it uses an intermediate-term trend-following methodology that really does well over the long-haul but does not react to the kind of short-term volatility we are experiencing now; and Ivy Asset Strategy (which is much like a hedge fund and is the riskiest fund in the Flex portfolios) has invested fully in growth companies in emerging markets that have had a rough time lately.
What to do? I am considering reducing the exposure to Arrow DWA Tactical for the Flex III portfolios; Flex II does not use this fund and performed significantly better recently, and about the same over the longer periods. I am also in touch monthly with the folks at Ivy Funds--Asset Strategy fund has been performing very well lately (up 14.4% just in October, vs. 10.8% for the S&P 500, and up 2.2% vs. 1.9% so far in November), and I am inclined to stick with it because of its track-record and the potential for great returns.
Here are the performance #s:
For October 2011:
S&P 500: 10.8%
80 Fidelity: 8.3%*
80 Flex III: 4.6%
60 Flex III: 4.2%
40 Flex III: 3.8%
Trailing Three-months (through 10/31):
S&P 500: -2.5%
80 Fidelity: -5.2%
80 Flex III: -6.7%
60 Flex III: -5.7%
40 Flex III: -4.6%
For 2011 YTD (through 10/31):
For 2011 YTD (through 10/31):
S&P 500: 1.2%
80 Fidelity: -1.7%
80 Fidelity: -1.7%
80 Flex III: -1.2%
60 Flex III: 0.3%
40 Flex III: 0.5%
For the 2-yr period ending 10/31/11:
SP 500: 12.1% per year
80 Fidelity: 7.3% per year80 Flex III: 8.5% per year
60 Flex III: 8.1% per year
40 Flex III: 7.7% per year
For the 3-yr period ending 10/31/11**:
SP 500: 11.3% per year
80 Fidelity: 10.4% per year80 Flex II: 15.2% per year
60 Flex II: 14.2% per year
40 Flex II: 13.19% per year
For the 10-yr period ending 10/31/11**:
SP 500: 3.6% per year
80 Fidelity: 5.3% per year80 Flex II: 11.5% per year
60 Flex II: 10.8% per year
40 Flex II: 10.1% per year
* 80 Fidelity is a portfolio of very popular and widely-available index funds from Fidelity Investments allocated in a 80% stocks, 20% bonds strategy similar to that of the 80 Flex portfolios, and I want to compare the two; the 80 Fidelity portfolio uses a style-pure, buy-hold-rebalance method, while the 80 Flex portfolio allows for a great deal of tactical adjustments within the 80% stock long-term strategy.
** Not all Flex III funds were available for the full 10-year period, but all Flex II funds were.
The Stock-Bond-Alternatives-Cash allocation percentages are approximately:
80 Flex III: 43-10-18-29
60 Flex III: 32-18-14-36
40 Flex III: 21-26-11-42
I still believe staying the course with a global/flexible portfolio is a lot better than trying to time the market. Please contact me with your questions or thoughts. Thank you!
--Gary
(FYI, my own retirement portfolio remains mostly in 80 Flex III.)
Garo Linck Partoyan
Financial Advisor
Potomac Wealth Strategies, LLC
(703) 746-8195
Garo.Partoyan@PotomacWealthStrategies.com
www.PotomacWealthStrategies.com
Monday, October 3, 2011
Flex Portfolio Performance Through September 2011
It was a very difficult quarter, and an especially rough September, for stock markets. European "sovereign debt" worries (countries potentially going bankrupt) and renewed concerns about the possibility of the USA entering another recession both hurt developed markets, and slowing growth in China put pressure on emerging markets' stock, commodity and currency markets.
How did my clients fare? Well, that's obviously a personal and private matter for each client, but this blog entry shows performance data for the three most commonly-used portfolios in my practice.
For September 2011:
S&P 500: -7.0%
80 Fidelity: -7.0%*
80 Flex III: -9.1%
For 2011-q3 (7/1 through 9/30):
S&P 500: -13.8%
80 Fidelity: -13.6%
* 80 Fidelity is a portfolio of very popular and widely-available index funds from Fidelity Investments allocated in a 80% stocks, 20% bonds strategy similar to that of the 80 Flex portfolios, and I want to compare the two; the 80 Fidelity portfolio uses a style-pure, buy-hold-rebalance method, while the 80 Flex portfolio allows for a great deal of tactical adjustments within the 80% stock long-term strategy.
** Not all Flex III funds were available for the full 10-year period, but all Flex II funds were.
The Stock-Bond-Alternatives-Cash allocation percentages are approximately:
80 Flex III: 47-9-17-27
60 Flex III: 35-17-14-34
40 Flex III: 24-25-10-41
I still believe staying the course with a global/flexible portfolio is, for most investors, probably a lot better than trying to time the market. Please contact me with your questions or thoughts. Thank you!
--Gary
(FYI, my own retirement portfolio remains mostly in 80 Flex III.)
Garo Linck Partoyan
Financial Advisor
Potomac Wealth Strategies, LLC
(703) 746-8195
Garo.Partoyan@PotomacWealthStrategies.com
www.PotomacWealthStrategies.com
How did my clients fare? Well, that's obviously a personal and private matter for each client, but this blog entry shows performance data for the three most commonly-used portfolios in my practice.
For September 2011:
S&P 500: -7.0%
80 Fidelity: -7.0%*
80 Flex III: -9.1%
60 Flex III: -8.0%
40 Flex III: -6.9%
For 2011-q3 (7/1 through 9/30):
S&P 500: -13.8%
80 Fidelity: -13.6%
80 Flex III: -9.4%
60 Flex III: -8.1%
40 Flex III: -6.8%
For 2011 YTD (1/1 through 9/30):
For 2011 YTD (1/1 through 9/30):
S&P 500: -8.7%
80 Fidelity: -9.2%
80 Fidelity: -9.2%
80 Flex III: -5.5%
60 Flex III: -4.3%
40 Flex III: -3.2%
For the 10-yr period ending 9/30/11**:
SP 500: 2.7% per year
80 Fidelity: 4.7% per year80 Flex II: 11.0% per year
60 Flex II: 10.4% per year
40 Flex II: 9.8% per year
* 80 Fidelity is a portfolio of very popular and widely-available index funds from Fidelity Investments allocated in a 80% stocks, 20% bonds strategy similar to that of the 80 Flex portfolios, and I want to compare the two; the 80 Fidelity portfolio uses a style-pure, buy-hold-rebalance method, while the 80 Flex portfolio allows for a great deal of tactical adjustments within the 80% stock long-term strategy.
** Not all Flex III funds were available for the full 10-year period, but all Flex II funds were.
The Stock-Bond-Alternatives-Cash allocation percentages are approximately:
80 Flex III: 47-9-17-27
60 Flex III: 35-17-14-34
40 Flex III: 24-25-10-41
I still believe staying the course with a global/flexible portfolio is, for most investors, probably a lot better than trying to time the market. Please contact me with your questions or thoughts. Thank you!
--Gary
(FYI, my own retirement portfolio remains mostly in 80 Flex III.)
Garo Linck Partoyan
Financial Advisor
Potomac Wealth Strategies, LLC
(703) 746-8195
Garo.Partoyan@PotomacWealthStrategies.com
www.PotomacWealthStrategies.com
Saturday, September 3, 2011
Giving Thanks to Those Who've Helped Me Build My Career!
We all learn a lot from others, and it's good to "give props".
Thanks to Soy Chu and Jeff Benjamin for giving me my first career-oriented job at New Year Tech. I didn't know what I wanted to do or how to do anything in particular then, but they let me grow into some things and taught me a lot. And Soy, the owner, kept me on even during the hard times.
Thanks to Rich Kotite and Todd Stayin for getting me into the corporate telecom world at Winstar. That was a great ride and I learned a ton. Todd got me in the door and took me under his wing when Rich hired me, and Rich made sure I had what I needed to learn the business and make contributions right off the bat. And there is where I met Joe Thompson. JT set me straight ("you're good, and we promoted you to Manager, but you gotta find something you love and do that; you like telecom okay and all, but find your passion and do it."), and that was huge. It prompted me to consider taking a shot at what I always really wanted to do, which leads me to this...
Thanks to Bill Waggoner of Morgan Stanley in Menlo Park for giving me a shot ten years ago.
Thanks to Greg Davis of Morgan Stanley for letting me transfer my business to his MS office in Tysons Corner when I wanted to move back home; thanks, also, to Greg for helping me understand my strengths and weaknesses in various investment areas.
Thanks to Loren Evans of A.G Edwards & Sons (then Wachovia Securities, and now Wells Fargo Advisors) for opening my mind and practice to the idea of tactical adjustments within a long-term strategy (the genesis of my Flex portfolio methodology).
And thanks to Deana Arnett, Certified Financial Planner extraordinaire, for teaching me how to be a real financial advisor, not just an "asset gatherer" (can't help anyone if you don't "sell" and bring in the business, but then ya gotta make sure you're really helping people).
I have a few young go-getters who have thanked me recently for helping them get going in their careers, and that prompted me to reflect on those who've helped me. Pay it forward, and don't forget to pay it back!
Thanks to Soy Chu and Jeff Benjamin for giving me my first career-oriented job at New Year Tech. I didn't know what I wanted to do or how to do anything in particular then, but they let me grow into some things and taught me a lot. And Soy, the owner, kept me on even during the hard times.
Thanks to Rich Kotite and Todd Stayin for getting me into the corporate telecom world at Winstar. That was a great ride and I learned a ton. Todd got me in the door and took me under his wing when Rich hired me, and Rich made sure I had what I needed to learn the business and make contributions right off the bat. And there is where I met Joe Thompson. JT set me straight ("you're good, and we promoted you to Manager, but you gotta find something you love and do that; you like telecom okay and all, but find your passion and do it."), and that was huge. It prompted me to consider taking a shot at what I always really wanted to do, which leads me to this...
Thanks to Bill Waggoner of Morgan Stanley in Menlo Park for giving me a shot ten years ago.
Thanks to Greg Davis of Morgan Stanley for letting me transfer my business to his MS office in Tysons Corner when I wanted to move back home; thanks, also, to Greg for helping me understand my strengths and weaknesses in various investment areas.
Thanks to Loren Evans of A.G Edwards & Sons (then Wachovia Securities, and now Wells Fargo Advisors) for opening my mind and practice to the idea of tactical adjustments within a long-term strategy (the genesis of my Flex portfolio methodology).
And thanks to Deana Arnett, Certified Financial Planner extraordinaire, for teaching me how to be a real financial advisor, not just an "asset gatherer" (can't help anyone if you don't "sell" and bring in the business, but then ya gotta make sure you're really helping people).
I have a few young go-getters who have thanked me recently for helping them get going in their careers, and that prompted me to reflect on those who've helped me. Pay it forward, and don't forget to pay it back!
Friday, September 2, 2011
Flex Portfolio Performance Through August 2011
It has been a volatile time for the stock markets. This is a quick blog entry to share the performance data for the three most commonly-used portfolios in my practice.
For August 2011:
S&P 500: -5.4%
80 Fidelity: -5.8%*
For 2011q3 (7/1 through 8/31):
S&P 500: -7.4%
80 Fidelity: -7.1%
For the 10-yr period ending 8/31/11**:
S&P 500: 2.6% per year
80 Fidelity: 4.7% per year
* 80 Fidelity is a portfolio of very popular and widely-available index funds from Fidelity Investments allocated in a 80% stocks, 20% bonds strategy similar to that of the 80 Flex portfolios, and I want to compare the two; the 80 Fidelity portfolio uses a style-pure, buy-hold-rebalance method, while the 80 Flex portfolio allows for a great deal of tactical adjustments within the 80% stock long-term strategy.
** Not all Flex III funds were available for the full 10-year period, but all Flex II funds were.
An important aspect of my Flex portfolios is their ability to tactically shift allocation within the long-term strategy; why stay put if you are pretty sure it's going to be rough and you have a better idea at the moment? Right now, the Stock-Bond-Alternatives-Cash allocation percentages are approximately:
80 Flex III: 48-9-17-26
60 Flex III: 36-17-14-33
40 Flex III: 24-24-12-40
For long-term investors, staying the course with a global/flexible portfolio is probably a lot better than trying to time the market. Please contact me with your questions or thoughts. Thank you!
--Gary
(FYI, my own retirement portfolio is mostly in 80 Flex III—I have a pretty strong risk tolerance and plan to be working and saving for the next 25 years.)
Garo Linck Partoyan
Financial Advisor
Potomac Wealth Strategies, LLC
(703) 746-8195
Garo.Partoyan@PotomacWealthStrategies.com
www.PotomacWealthStrategies.com
For August 2011:
S&P 500: -5.4%
80 Fidelity: -5.8%*
80 Flex III: -2.0%
60 Flex III: -1.7%
40 Flex III: -1.4%
For 2011q3 (7/1 through 8/31):
S&P 500: -7.4%
80 Fidelity: -7.1%
80 Flex III: -0.4%
60 Flex III: -0.2%
40 Flex III: -0.0%
For the 10-yr period ending 8/31/11**:
S&P 500: 2.6% per year
80 Fidelity: 4.7% per year
80 Flex II: 11.5% per year
60 Flex II: 10.9% per year
40 Flex II: 10.3% per year
* 80 Fidelity is a portfolio of very popular and widely-available index funds from Fidelity Investments allocated in a 80% stocks, 20% bonds strategy similar to that of the 80 Flex portfolios, and I want to compare the two; the 80 Fidelity portfolio uses a style-pure, buy-hold-rebalance method, while the 80 Flex portfolio allows for a great deal of tactical adjustments within the 80% stock long-term strategy.
** Not all Flex III funds were available for the full 10-year period, but all Flex II funds were.
An important aspect of my Flex portfolios is their ability to tactically shift allocation within the long-term strategy; why stay put if you are pretty sure it's going to be rough and you have a better idea at the moment? Right now, the Stock-Bond-Alternatives-Cash allocation percentages are approximately:
80 Flex III: 48-9-17-26
60 Flex III: 36-17-14-33
40 Flex III: 24-24-12-40
For long-term investors, staying the course with a global/flexible portfolio is probably a lot better than trying to time the market. Please contact me with your questions or thoughts. Thank you!
--Gary
(FYI, my own retirement portfolio is mostly in 80 Flex III—I have a pretty strong risk tolerance and plan to be working and saving for the next 25 years.)
Garo Linck Partoyan
Financial Advisor
Potomac Wealth Strategies, LLC
(703) 746-8195
Garo.Partoyan@PotomacWealthStrategies.com
www.PotomacWealthStrategies.com
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