Powerfund Portfolios Performance Review

Powerfund Portfolios Commentary

April 2012 Performance Review

May 2, 2012
Category: 
Powerfund Portfolios

Fund investors continue pulling money out of stock funds. We see around $10+ billion a month come out of ordinary mutual funds – an investment class that is in long term decline. If it wasn’t’ for 401k assets, there would be big problems in the mutual fund industrial complex. ETFs continue to bring in money to offset these losses in total fund assets. ...read the rest of this article»

March 2012 Performance Review

April 2, 2012
Category: 
Powerfund Portfolios

Stocks remained strong in March. Investments considered safe havens did poorly, from bonds to precious metals. Even the market volatility measure, the VIX, slid as the stock market’s potential downside seemed to shrink. There will be no double-dip recession, and perhaps no collapse of Europe. Even though investors optimism on US stocks continued to grow, the underperformance in what typically would do well as investors embraced risk - emerging markets - continued. ...read the rest of this article»

February 2012 Performance Review

March 2, 2012
Category: 
Powerfund Portfolios

Typically emerging market stocks rebound faster than the US stock market when the market heads back up (like we saw in January) but there seems to be some fears around that the emerging markets era of outperformance is waning and the US may be more insulated than faster growing markets from Europe’s ongoing troubles.  ...read the rest of this article»

January 2012 Performance Review

February 2, 2012
Category: 
Powerfund Portfolios

The big gains in foreign markets doesn’t quite wipe out last year’s losses, but it’s a good start to the year. The bond market highlights this re-embracing of risk. Higher risk bonds topped the list in January with emerging market bond funds up around 5%, followed by high yield bonds up over 3%. The safest government bond funds were roughly flat to slightly up.  ...read the rest of this article»

December 2011 Performance Review

January 4, 2012
Category: 
Powerfund Portfolios

For 2011 our Conservative Portfolio was up a respectable 3.5% while our Aggressive Portfolio’s winners couldn’t overtake the drag of foreign markets and financials, giving us a 0.41% loss for the year. A drop of less than one-half of one percent may compare favorably to most global portfolios (the Morningstar Global Allocation category was down about 4% for 2011), but we consider it a disappointing result. ...read the rest of this article»

November 2011 Performance Review

December 2, 2011
Category: 
Powerfund Portfolios

October’s sharp rebound fizzled in November, and a late month rebound wasn’t enough to push the S&P 500 back into positive territory. The market’s slight dip for the month was similar to the bond market’s slip, resulting in a down November for most investment mixes.  It doesn’t seem it but the S&P 500 is up just under 1% (with dividends) for the year. Once again, foreign stocks underperformed US stocks last month. ...read the rest of this article»

October 2011 Performance Review

November 2, 2011
Category: 
Powerfund Portfolios

One oddity of the new market environment is everything that is somewhat risky to very risky has been moving in near perfect sync - so wild swings tend to hit everything the same way, making well diversified portfolios appear quite risky. Longer term government bonds –which have limited long term appeal at current low rates, remain the best offset to sliding everything, almost always going up significantly when fears drive riskier global assets down. ...read the rest of this article»

September 2011 Performance Review

October 3, 2011
Category: 
Powerfund Portfolios

This is how America’s fascination with foreign stock investing ends. It is also not far off from when we add some emerging market stock funds back into the Powerfund Portfolios. While the 10 year return for non-emerging foreign stock funds still beats the S&P 500, all the huge inflows into foreign funds were in the last five years, and for the last five years US stocks have been ahead. ...read the rest of this article»

August 2011 Performance Review

September 2, 2011
Category: 
Powerfund Portfolios

Another negative month. With August’s 5.45% drop, the stock market is now down four months in a row and about 10% in total since the end of April, enough to push the market into slightly negative territory for the year (talk about the old Wall Street adage ‘sell in May and go away’). But  considering we were down about 20% top to bottom from July 22nd to the lows in August, being down ‘only’ 10% feels sort of fortunate. ...read the rest of this article»

July 2011 Performance Review

August 2, 2011
Category: 
Powerfund Portfolios

The big news remains the government debt drama, which as of this writing appears to be over, if by over you mean pushing the bulk of the problem ahead a few months. At least government bond holders will get their money. Of course, this was never really in question. As proof look at one of the highest performing fund category last month: long term government bonds, up 4.4%. So basically when there is panic in the air, people flood to treasuries - even when the panic is OVER treasuries. ...read the rest of this article»

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