Well, the bad news seems just not to stop right now, and it’s making some stress out a bit more than usual. Here is a quick update on how we are faring through this.
We couldn’t be more pleased with the results above. What you are looking at is the YTD returns of each fund/ETF within our All-Weather allocation (this data from Morningstar), as well as the weighted average return of the group.
You can see that while stocks are being bumped around (red) our bonds (blue) and gold (you guessed it, gold) are reacting exactly as we would hope. They are our ballast. Our zigs in the face of the zags! You can see clearly that the weighted average of the balanced All-Weather Allocation is -0.1%, or if you’ll give me a bit of leeway, basically flat.
I am not saying everyone’s account will reflect these returns exactly, but you know we really try to get everyone’s exposure to each area as close to the index as we can. So, we would expect your All-Weather return to be close to the above.
I know the news is bad. That’s what sells. Just remember, that while we didn’t predict this stuff, we prepared for it. Years ago, when we allocated your account. So, change your TV from the news to say, Home and Garden, or the Cooking channel. Put your time to more productive use!
We’ll have a bit more to say on this general topic after the month closes this weekend.
And now, please allow us to offer a shameless commercial pitch for BCM –
If you have a financial relationship elsewhere, and if they don’t have a well thought-out plan regarding periods such as this, if they are making you nervous, or better yet, if you can’t even get them on the phone right now (!), our doors are open and our arms are outstretched. Come on down and see us! We’ll leave a light on for you.
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About the Author
Joseph “Bo” Billeaud is the founder of Billeaud Capital Management. After earning a BS in Chemical Engineering (University of Louisiana, 1979) and while working in industry for seventeen years, Bo developed the market risk-control models and investment philosophy that undergirds all BCM portfolios. Since effecting a formal career change in 1996, Bo has helped BCM grow into a respected asset management and financial planning firm currently overseeing $400+ million dollars for individual, corporate, trust, retirement and 401(k) accounts…. Read more.