Linked below are the latest Morningstar® Investment Detail Reports for the Portfolio Shield™ family.
Portfolio Shield™ maintained the same percentage to its long-term bond hedge (TYA) for January. There were only very slight changes between the two equity positions (SPD & QQD) for the month.
Due to the very slight change this month, you may not see any changes to your allocation.
Overall, it was another great year for the Portfolio Shield™ family, and given its current positioning, all Portfolio Shield™ models are well-positioned for a sizable market correction. Based on my overall macro view of the economy and the risks coming in 2022, I am happy all models remained hedged against those potential downside risks.
Bonds had one of their worst years on record and historically, the three years following are usually very good for bonds. While the lower-risk models that have larger bond allocations did not perform as well as normal, they still outperformed their peers due to the outperformance of equities.
I expect returns for the lower-risk models should improve over the next few years as the economy slows down due to the withdrawal of fiscal and monetary stimulus.
As a reminder, all strategies are rebalanced on the first trading day of each month and at that time, any new monies are invested according to the model strategy you are in.
For those who want to change between strategies, changes will occur at the next rebalance on the first trading day of each month.
There is only a 0.3% allocation to cash in each model. Due to a misreporting between Morningstar® and the ETF providers, the Asset Allocation box on the fact sheets may show a higher cash position than is actually in the model.
If you have any questions or would like to change which Portfolio Shield™ strategy you are invested in, please let me know.
Steven Van Metre, CFP®