Portfolio Rebalancing: April 2022
Balanced and Pure Stocks Portfolios
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Balanced portfolio
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This year is not easy for investors: the suffering is shared between bond and equity investors. Just look at the performance of the main indices of these asset classes:
Of course this has not been good for investors that are using a multi-asset strategy, even in order to diversify the risk. On the other hand, even if 2022 has been so far one of the worst year for the 60/40 portfolio, there could be some good news as highlighted by Ryan Detrick:
In the past, after 5% quarterly drawdown, the performance of the following quarter has been always positive. I hope we’ll see something similar this time too.
So far equities look still weak, while there has been a small signal of inversion on bonds, as you can see from the 10-Year Treasury yield chart, after a lower than expected Core CPI data.
Maybe it is too early to say if the correction is over, and probably it is not, but we are looking at the long term, so don’t be scary. corrections have often been an excellent buying opportunity, and if you are using a Dollar Cost Average Approach, you should consider to buy in moments like this.
BALANCED PORTFOLIO
The Balanced portfolio, is mainly exposed to equity, bonds, commodities and crypto.