The Core portfolio spent December in high quality bonds (AGG) and short term Treasuries (SHY). The Core Portfolio was down 0.10% for December and down 1.45% for 2015.
Market conditions and volatility were extremely challenging for all investment classes during 2015. There was little/no trend in what has clearly been a Central Bank drive market. One Fed official barely had time to talk the market down before another talked it up.
The Risk Model continues (since 11/30/2014) to display hostile market conditions.
The Satellite Portfolio is hibernating (all portfolio funds are in the Core Portfolio).
As I look forward into 2016, I expect the TAA portfolio to keep us out of trouble for the first half rather than generate substantial return. The time for substantial returns will arrive with improved valuations in the market.
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