It’s just one day, but…
We constantly hammer home the idea of proper diversification organized around the cycles of the economy. That different non-correlated asset classes (stocks, bonds, commodities and cash) react and change in value driven by underlying forces in the economy is indisputable.
Although it is just one day, yesterday’s market(s) activity illustrated this principle beautifully. While the political crosswinds coming out of Washington yesterday severely affected stocks negatively, bonds and gold rose nicely.Our All-Weather Index (which holds stocks, bonds, and commodities all designed to reflect an economically-diversified philosophy) declined all of 0.1% (essentially flat) for the day.
There is a reason why we emphasize economic-balance and active risk management over here at Billeaud Capital Management. Yesterday was a textbook illustration.
If you would like to know more about our All-Weather approach, please give us a call.