After several seasons of unpredictable market conditions, a spring cleaning can bring a sense of order to things. We're talking about your portfolio, of course. Moves you make now to ensure you hold the right mix of funds could be richly rewarding later. As renowned value investor Shelby Davis once said, "You make most of your money in the bear market. You just don't realize it at the time."
The past year was one for the record books, though it's also one that many would like to forget. Thanks to a wicked-fast succession of interest-rate hikes, bond markets have suffered historic losses. (Bond prices and interest rates move in opposite directions.) The broad bond benchmark, the Bloomberg U.S. Aggregate Bond index, turned in a 9.7% loss over the past 12 months. The rate hikes sent U.S. stocks into bear-market territory in 2022, although a sharp rally in recent months helped erase some of those losses: Over the past 12 months, the S&P 500 index declined 7.7%. Foreign shares, however, were a mixed bag. Stocks in developed countries, as measured by the MSCI EAFE index, dipped a mere 3.1% over the past 12 months; emerging-markets stocks lost a whopping 15.3%.
Through it all, our Kiplinger 25 funds mostly performed better than the broad-market benchmarks, albeit with losses. Our diversified U.S. stock funds lost 5.6% over the past year; our bond funds, 4.9%. Our foreign stock funds turned in a medley of results, and lost 10.6%, on average.
Bu hikaye Kiplinger's Personal Finance dergisinin May 2023 sayısından alınmıştır.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber ? Giriş Yap
Bu hikaye Kiplinger's Personal Finance dergisinin May 2023 sayısından alınmıştır.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber? Giriş Yap
MAKING A DIFFERENCE IN THE LIVES OF DISABLED VETERANS
He suffered grave injuries in the line of duty. Now he helps other veterans who have disabilities.
DO YOU NEED UMBRELLA INSURANCE?
A policy can protect you from financially devastating events.
Navigating Finances as a Blended Family
Money matters can get complicated when two families unite. Planning is key.
BREAKING UP WITH YOUR BROKER
Be aware of these challenges when you move your money to a new home.
CHOOSE A MEDICARE PLAN THAT'S RIGHT FOR YOU
Consider your health care needs over the long term as you weigh costs and coverage.
Keep Faith in These Stocks
IN 1997, I coined the phrase “faith-based investing.” It has nothing to do with religion or with picking stocks at random.
OUR ESG PICKS ARE THRIVING
Despite an ongoing backlash, our favorite stocks and funds focused on environmental, social and corporate governance issues had a good year overall.
MONEY MANNERS FOR THE MODERN AGE
The customs for splitting a restaurant check, purchasing a wedding gift, tipping and more have evolved. These guidelines can help.
ELECTION 2024: POLITICS AND YOUR PORTFOLIO
Who wins the White House matters—but only at the margins when it comes to your investments.
YOUR GUIDE TO OPEN ENROLLMENT
With health care costs on the rise, it’s critical to select a plan that fits your needs at the right price.