In a Nutshell
- 2015 was a tough year for diversified portfolios.
- For U.S. stocks, during the quarter and the year, the story was as much about what to avoid as what to own. Steering clear of energy and basic material companies was as important as being in large company growth stocks. That said, U.S. stocks overall were essentially flat for the year.
- Bonds nervously anticipated the first Fed rate increase in 10 years. When it finally did come, prices fell, but were still buoyed by global demand. Lower quality bonds were negatively impacted by falling energy prices.
- For the year, international stocks of developed markets such as Japan and the Eurozone were flat. Emerging markets, many of which are highly dependent on commodity prices, were the 2nd worst performing asset class last year.
- Commodities continued to take a bath, driven by oil and metals.
U.S. Stocks – Dr. Jekyll and Mr. Hyde
Much like the amiable doctor in the Robert Louis Stevenson novel, in the first half of 2015 domestic stocks were the understated yet dependable members of the investment world. [Read more…] about 2015 Q4 and Year in Review