Last week, in addition to a Santa Claus Rally that is taking us back to market highs, we saw a meaningful shift in our indicators.
International Equities, the asset class that took the #2 spot from Bonds back in January of 2013, switched places, yet again with Bonds/Fixed Income. Bonds have now taken back the #2 spot, moving International Equities to the #3 spot after almost a 2 year run ranked as the #2 asset class.
What does this mean?
Santa Rally or not, the rally will not serve as “noise” – this shift will reduce our equity exposure by 15-30%, depending upon your personal allocation. You will see a large reduction in your International holdings, and more of a market weight position in bonds/fixed income.
In other words, 60/40 blend accounts will hold closer to 40% in bonds, versus the underweighted position we have held since January 2013. Furthermore, 100% equity allocations will now have exposure to bonds and/or bond alternatives due to this development.
Of course this is simply an update for you. You need not do anything, because – we have you managed.
Is this cause for caution? NO. It is simply cause for action – and again, we’ve got you managed.
As 2014 comes to a close, I thank you for yet another year together. THANK YOU for helping me continue to grow the Liberated Investor movement, so that all investors can be liberated from the ways of Wall Street and Big Brokerage.
While only tomorrow will reveal what 2015 holds, know that discipline and rules will guide as through the New Year with investing confidence that honors risk over return.
Not sure if you’re in the right allocation? Schedule a call or meeting today!
In the meanwhile, QUIET THE NOISE and know that we have you MANAGED.