07 October 2014
We’re headed into the last quarter of the year but in case you’ve missed why we’re running a series of articles around the topic of a “60/40 benchmark”, here’s a refresher:
Click here to revisit the first edition of the MPG Core Tactical 60/40 Portfolio.
Here’s the current summary of the MPG Core Tactical 60/40 portfolio mix, which is updated as of this writing (October 6, 2014).
It’s finally happening. Yes…it appears the stock market is correcting. As a matter of fact for the second time this year alone the Small Cap asset class has endured a correction of -10% or more. What’s puzzling (and actually quite worrisome) is the divergence between what Large Caps and what Small Caps are doing. In a healthy and rising stock market, “as the tide rises so do all the boats”. We’ve had warnings before but the alarm bells are ringing louder since not all asset classes are moving in tandem as they once were. What we’re seeing now are perhaps the final signs of the rally peaking out.
What adjustments did we make?
The following moves were made during the month of September:
9/2/14: Added to our position of DXMIX (Direxion Indexed Managed Futures) 280 shares @ $35.71 (~$10k total)
9/23/14: Added to our position of GLD (SPDR Gold Trust) 200 shares @ $117.56 (~$23k total)
9/25/14: Added to our position of VB (Vanguard Small Cap Index) 100 shares @ $111.35 (~$11k total)
If you read last months update the nugget we put on the table was the “alternative investment story”. In short…this market environment is one that deserves caution in both stocks and bonds. Where do you go? In our opinion