Never miss a trade! Sign up for MAXfunds Powerfund Portfolio’s FREE email alerts! CLICK HERE!

October 2015 Performance Review

November 4, 2015

Normally we'd be pretty happy about our model portfolios up around 3% for the month. But in October, risky assets rebounded strongly, led by an 8.5% jump in the S&P 500 with dividends — now up about 2.5% for the year. Bonds were mostly flat. While we have stock funds that did well, with a large weight to bonds, shorts that lost money, and foreign funds that are still lagging the U.S. market, we'll have to settle for just so-so performance in October, relatively speaking. On the positive side, having significantly less downside during this brief slide (and being up for the year) isn't such a bad tradeoff.

Our Conservative portfolio gained 2.72% in October. Our Aggressive portfolio was up 3.14%. Benchmark Vanguard funds for October 2015: Vanguard 500 Index Fund (VFINX) up 8.42%; Vanguard Total Bond Market Index Fund (VBMFX) up 0.01%; Vanguard Developed Markets Index Fund (VTMGX) up 6.82%; Vanguard Emerging Markets Stock Index (VEIEX) up 5.57%; Vanguard Star Fund (VGSTX), a total global balanced portfolio, up 4.96%.

Ironically, the boost to stocks came from the global economic troubles. Namely, it's becoming pretty obvious that short term interest rates aren't going up soon — and if they do, it won't be by much.

Our best showings were Vanguard MegaCap Growth (MGK) and Vanguard Telecom Services ETF (VOX) up 9.81% and 8.79% respectively. Everything else missed the S&P 500 benchmark. All holdings were up last month except our two funds that short PowerShares DB Crude Oil Dble Short (DTO) and Gold Short (DZZ) and Vanguard Extended Duration Treasury (EDV), this last one being the most interest rate sensitive type of fund you can own.

U.S. stock markets were the best globally, but higher risk debt did well scoring 1% to 3% returns for the month and gaining back some recent losses. Technology and communications were the strongest sectors, with energy and natural resources doing well. Utilities and healthcare were weak as the biotech stock boom fizzled.

Stock Funds1mo %
Vanguard MegaCap Growth (MGK)9.81%
Vanguard Telecom Services ETF (VOX)8.79%
[Benchmark] Vanguard 500 Index (VFINX)8.42%
PRIMECAP Odyssey Growth (POGRX)7.54%
Vanguard Europe Pacific ETF (VEA)7.20%
[Benchmark] Vanguard Tax-Managed Intl Adm (VTMGX)6.82%
Vanguard European ETF (VGK)6.38%
Artisan Global Equity (ARTHX)5.98%
Wasatch Long/Short (FMLSX)5.91%
[Benchmark] Vanguard Emerging Mkts Stock Idx (VEIEX)5.57%
iShares MSCI BRIC Index (BKF)5.44%
Satuit Capital Micro Cap (SATMX)3.52%
Wasatch Frontier Emerg Sm Count (WAFMX)0.72%
PowerShares DB Crude Oil Dble Short (DTO)-1.94%
Gold Short (DZZ)-4.80%
Bond Funds1mo %
Vanguard Long-Term Bond Index ETF (BLV)0.68%
SPDR Barclays Intl. Treasury (BWX)0.42%
[Benchmark] Vanguard Total Bond Index (VBMFX)0.01%
Vanguard Mortgage-Backed Securities (VMBS)-0.01%
Vanguard Extended Duration Treasury (EDV)-0.40%