The Conservative Portfolio dropped -1.08% in January.
In January the S&P 500 slipped 3.6% the only real interruption during the strong comeback off the early March 2009 lows other than a 1.87% drop in October of 2009. Even with the roughly 60% run from the March 9th low. The index needs to climb around 40% to get back to the all time highs in 2007 (which are not far from the highs of early 2000).
Just about everything that went up faster in the comeback slipped harder in January. The Nasdaq slid 5.37% (though small caps were down 3.68%) more in line with the larger caps in the S&P500. Interest rates dipped down with long term treasuries returning about 2.5% for the month. Surprisingly, high-yield junk bonds were up for the month, bucking the overall trend of the meek doing better in January.
All our model portfolios slipped in January, though all less than the S&P 500, with the average portfolio down 1.62%.
The Vanguard Growth ETF (VUG) fell more than the market with a 4.6% drop as larger cap tech stocks stopped doing better than the market at large.
Once again telecom stocks moved with much more volatility than the overall stock market. Vanguard Telecom Service ETF (VOX) slid 7.75% in January, the almost mirror image of Decembers move up. We noted this sector becoming hot with speculators last month. While we are more concerned with fund investors in general becoming over enthusiastic about a category of funds as a sign for us to get out, it is worth noting this action as it could explain the asset levels of telecom ETFs as not being the result of more typical fund investor behavior.
The great junk bond rally STILL won’t die. Metropolitan West High Yield Bond (MWHYX) was up 1.86% in January.
The Aggressive Portfolio fell -3.03% in January.
In January the S&P 500 slipped 3.6% the only real interruption during the strong comeback off the early March 2009 lows other than a 1.87% drop in October of 2009. Even with the roughly 60% run from the March 9th low. The index needs to climb around 40% to get back to the all time highs in 2007 (which are not far from the highs of early 2000).
Just about everything that went up faster in the comeback slipped harder in January. The Nasdaq slid 5.37% (though small caps were down 3.68%) more in line with the larger caps in the S&P500. Interest rates dipped down with long term treasuries returning about 2.5% for the month. Surprisingly, high-yield junk bonds were up for the month, bucking the overall trend of the meek doing better in January.
All our model portfolios slipped in January, though all less than the S&P 500, with the average portfolio down 1.62%.
The Vanguard Growth ETF (VUG) fell more than the market with a 4.6% drop as larger cap tech stocks stopped doing better than the market at large.
Once again telecom stocks moved with much more volatility than the overall stock market. Vanguard Telecom Service ETF (VOX) slid 7.75% in January, the almost mirror image of Decembers move up. We noted this sector becoming hot with speculators last month. While we are more concerned with fund investors in general becoming over enthusiastic about a category of funds as a sign for us to get out, it is worth noting this action as it could explain the asset levels of telecom ETFs as not being the result of more typical fund investor behavior.
January 2010 Performance Review
The Conservative Portfolio dropped -1.08% in January.
In January the S&P 500 slipped 3.6% the only real interruption during the strong comeback off the early March 2009 lows other than a 1.87% drop in October of 2009. Even with the roughly 60% run from the March 9th low. The index needs to climb around 40% to get back to the all time highs in 2007 (which are not far from the highs of early 2000).
Just about everything that went up faster in the comeback slipped harder in January. The Nasdaq slid 5.37% (though small caps were down 3.68%) more in line with the larger caps in the S&P500. Interest rates dipped down with long term treasuries returning about 2.5% for the month. Surprisingly, high-yield junk bonds were up for the month, bucking the overall trend of the meek doing better in January.
All our model portfolios slipped in January, though all less than the S&P 500, with the average portfolio down 1.62%.
The Vanguard Growth ETF (VUG) fell more than the market with a 4.6% drop as larger cap tech stocks stopped doing better than the market at large.
Once again telecom stocks moved with much more volatility than the overall stock market. Vanguard Telecom Service ETF (VOX) slid 7.75% in January, the almost mirror image of Decembers move up. We noted this sector becoming hot with speculators last month. While we are more concerned with fund investors in general becoming over enthusiastic about a category of funds as a sign for us to get out, it is worth noting this action as it could explain the asset levels of telecom ETFs as not being the result of more typical fund investor behavior.
The great junk bond rally STILL won’t die. Metropolitan West High Yield Bond (MWHYX) was up 1.86% in January.
The Aggressive Portfolio fell -3.03% in January.
In January the S&P 500 slipped 3.6% the only real interruption during the strong comeback off the early March 2009 lows other than a 1.87% drop in October of 2009. Even with the roughly 60% run from the March 9th low. The index needs to climb around 40% to get back to the all time highs in 2007 (which are not far from the highs of early 2000).
Just about everything that went up faster in the comeback slipped harder in January. The Nasdaq slid 5.37% (though small caps were down 3.68%) more in line with the larger caps in the S&P500. Interest rates dipped down with long term treasuries returning about 2.5% for the month. Surprisingly, high-yield junk bonds were up for the month, bucking the overall trend of the meek doing better in January.
All our model portfolios slipped in January, though all less than the S&P 500, with the average portfolio down 1.62%.
The Vanguard Growth ETF (VUG) fell more than the market with a 4.6% drop as larger cap tech stocks stopped doing better than the market at large.
Once again telecom stocks moved with much more volatility than the overall stock market. Vanguard Telecom Service ETF (VOX) slid 7.75% in January, the almost mirror image of Decembers move up. We noted this sector becoming hot with speculators last month. While we are more concerned with fund investors in general becoming over enthusiastic about a category of funds as a sign for us to get out, it is worth noting this action as it could explain the asset levels of telecom ETFs as not being the result of more typical fund investor behavior.