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.