Passive Investment Strategy

How did a 37% stock/63% bond Portfolio Perform During January’s Crash, Volatility and Rebound? 0

How did a 37% stock/63% bond Portfolio Perform During January’s Crash, Volatility and Rebound?

Posted by on Jan 31, 2016 in Beginning Investing, Laymen to Laymen Financial Information, Passive Investment Strategy, Retirement Planning

In this post, I share in detail my Morningstar printouts at each of the four weeks in January 2016. You can see first-hand how volatile even my conservative portfolio can get. The news reported, ad nauseum, that the stock market was volatile, wondering if this was a start of a major and long lasting crash. Oil prices sank to ten-year lows, China’s economy stalled and everyone watched what the Federal Reserve was going to do next with interests rates. When oil prices rebounded from $28 per barrel, and Japan’s central bank lowered their interest rates with some folks saying that our Federal Reserve might ease our rate increases from 2 times this year instead of 4, by the end of January all the major stock and bond markets came roaring back. This recovery made a $50,000 loss in mid-January into a $20,000 loss by the end of January.

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