3rd Quarter 2015 Portfolio Performance

It’s that Time of the Year: The Quarterly Report with our Year-to-Date Return

Quarterly reports are historical landmarks on how the economy is performing. April 1, July 1 and October 1st are important reports offered by all of the financial networks. Wow! And what a quarter! Our portfolio was constructed to take advantage of both stock market worlds–going up and protection when going down. All three benchmarks, DOW, S&P 500 and the tech-heavy NASDAQ declined about 10% YTD, during the 3rd quarter. Some days the DOW went up over 300 points and lost 300. Our portfolio did not decline by 10% because of our bond allocation, but only 2.3%.

Since the close of 2015’s 3rd quarter results, which are below, the market has gained every day for the last six days. As of the close of yesterday’s market, October 9, 2015, our portfolio lost about -1.0% YTD instead of -2.3%. Who knows if this recovery will last. We simply ignore the media circus: China, Middle East, oil prices, interest rates, debt ceiling, congress’ refusal to compromise…. Ignore it all and construct a portfolio that will gently ride the waves and the swirls.

During the last massive 2008 financial crisis, our portfolio only declined -11.8% (relative to 100% equity portfolios that dropped 50% or more!). Our broad stock and bond diversification and the stock-bond split was constructed 2 years before 2008. The allocation is still similar in 2015. See below for annual returns of our portfolio and our allocation.

Since 2008, our portfolio has gone up every year except 2015:

  • 2009: 13.9%
  • 2010: 10.6%
  • 2011: 2.5%
  • 2012: 10.0%
  • 2013: 6.9%
  • 2014: 6.0%
  • 2015 YTD after 3 Quarters: -2.3%    (Remember, 2015 had three more months and it’s already recovering with a tremendous recovery during the first ten days in October, 2015)

Our portfolio is designed to slowly go up when the market goes up and slowly go down when the market goes down. How is this so? It’s our asset allocation and our stock bond split tilted heavily to bonds.

Our portfolio allows for enough growth over time to meet or beat the inflation rate and pay income taxes. Most important it allows us to sleep soundly, travel to Vietnam and Cambodia at the end of this month, write this blog and walk our almost 14 your old doggy, Sammy. She is fine but her hearing is declining and she now is leaking, but she still gets excited when we go anywhere in the car or for a walk.



Q3 2015 Portfolio pie chart allocation

Q3 2015 Portfolio Return


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