03 March 2015
Dear Mr. Market:
For a guy who is usually full of surprises you’re scripting 2015 like a boring rerun of last year. As you’ll recall we had a rough start to the year with the S&P 500 dipping -3.1% in January but then February came around and erased all the negative returns for the year with a very strong month. As a matter of fact the S&P 500 had its best month in almost five years with a gain of +5.5%. The Nasdaq bubbled up (pun intended) even higher at +7%.
Everything is fine and dandy, right? The media is as giddy as they’ve been in ages. They’re showing us charts and comparisons of Nasdaq 5,000. Nothing could go wrong from here, could it? Is this another perfect backdrop for the four most dangerous words in investing?
“It’s different this time”.
It’s without question that the market could continue to run higher. We’ll discuss this and the likelihood of it happening in the last section of this article. First let’s review where we’re currently at and what we did last month:
Here’s the current summary of the MPG Core Tactical 60/40 portfolio mix, which is updated as of this writing (March 2, 2015).
Click here to compare our portfolio against the benchmark
What adjustments did we make?