Friday, September 19, 2014

Relative performance at this point in the year

The Callan performance table shows the relative returns across asset classes for the last few years. We may see a significant change in the ranking this year. In fact, the rankings have changed significantly in the last three month. Bonds and stock returns had a significant divergence with bonds proving to be the much better asset class until a few weeks ago, but the gap between the major asset classes have fallen and the rankings are being reshuffled as we speak. 

This is an important time to do extensive portfolio reviews. The markets are in transition and waiting until the end of the year will clearly be too late.

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