Simple Asset Allocation Yardstick (YTD 09/04/08)
Source: http://www.qvmgroup.com/investPosted on Thursday, September 4th, 2008 | In Market Commentary
Generally, a portfolio should consist of more classes than merely US stocks and US bonds, but it is nonetheless interesting to keep tabs on how various allocations between those two classes are working out.
The table shows the YTD total return and trailing yield of eleven allocations between the Russell 3000 stock index and the Lehman Aggregate Bonds index.
So far this year, only bonds are positive, and not much at that.
The typical 60/40 allocation of stocks and bonds in US balanced funds is down 7.67%, and yields just over 3%.
Note that total return includes dividends received.
We provide return information on a variety of funds by type on our site. You can access them here.
One of those charts, shown below, presents returns for several important asset classes. The charts are updated weekly in the evening after the last trading day.
Richard Shaw
QVM Group LLC
Last 5 posts by Richard Shaw
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Lehman, Market Commentary, QVM Group LLC, Richard Shaw, Russell 3000, United States
 About Richard Shaw (http://www.QVMgroup.com)
Richard is a principal of QVM Group LLC, a fee-based investment advisor based in Connecticut with clients across the country. He provides investment coaching to "do-it-yourself" investors, and manages portfolios for those who prefer not to make their own decisions. His investment approach is based on value, asset allocation, benchmarking, expense control, risk management, customizing portfolios to each client's specific circumstances, and regular communication about strategy and performance. The QVM Group team also provides municipal refinance services, strategic business planning and financial analysis service for new ventures, private acquisition analysis, and custom investment research. Richard's extensive experience, includes serving on the Board of Directors of Aberdeen Asset Management PLC (London Stock Exchange: ADN), membership on the Board of Directors of Phoenix Investment Counsel (renamed Virtus Investment Advisors), a U.S. pension manager and investment advisor to the Phoenix Funds (renamed Virtus Funds), as well as serving as Managing Director of a series of offshore investment funds based in Luxembourg. He has led institutional asset management sales and had overall responsibility for management of a U.S. mutual funds broker-dealer. He was a charter investor and member of the Board of Directors of several internet companies, including Lending Tree prior to its IPO. He is a graduate of Dartmouth College. QVM Group LLC is a Registered Investment Advisor. Visit the QVM Group website http://www.qvmgroup.com/QVMinvest/ |
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