Total And
Time Weighted 2022 Returns
In
that year, as interest rates increased, financial assets became better
investments.
Market : (50% Intermediate Corporate Bond ETF; 50%
S&P 500) = -16.04%
Our
Portfolios: (50/50 target)
= -3.98%
We
encourage you to consult with your legal, accounting, or financial advisors to
formulate the exposures to the bond and stock markets that are appropriate for
your specific situation.
For
long-term pension investors, our emphasis has been on properly priced
debt and equity income rather than on capital gains. This 1/2/23 FT comment
from a finance professor discusses a reason for our emphasis on income, but
general market levels of interest rates do matter.
Equities
are also very important – at least to maintain portfolio balance. Representing real assets, stocks will benefit
from realized, but controlled, inflation. A well-considered investment policy
considers both quantitative and long-term qualitative factors.