Mid Year Review: The Diversified Portfolio

Mid Year Review: The Diversified Portfolio

July 06, 2022

Diversification can feel disappointing.  A well-diversified portfolio is designed to help you achieve your long-term goals as well as limit your portfolio’s downs (and ups). But it doesn’t always feel good. You may get upset when you inevitably lose money during certain periods (though your loss is likely less than that of the S&P 500 Index). You may also be disappointed during up markets when you see how well the S&P 500 Index performed, and you didn’t do as well. The good news: A diversified portfolio may produce a better outcome for you in the long-term.

But how has the 60/40 Portfolio faired this year?

2022 has been on pace for the 3rd worst start for the year. (First 5 months of the year). ´╗┐However, history shows us that this volatility may not be long lasting. 


Our Recommendation? It doesn't get much simpler than this... 

*Source: Morningstar as of 12/31/21. *Performance is from 9/30/00 to 12/31/02. †Performance is from 1/1/20 to 3/23/20. ‡Performance is from 3/24/20 to 12/31/21. Diversified Portfolio is represented by 25% S&P 500 Index,
19% Russell Mid Cap Index, 7% MSCI EAFE Index, 5% Russell 2000 Index, 4% FTSE Emerging Stock Index, 25% Bloomberg US Aggregate Bond Index, and 15% Bloomberg US Corporate High Yield Index. Past performance does not guarantee or indicate future results. Index performance is for illustrative purposes only. You cannot invest directly in the index. Diversification does not guarantee a profit or protect against a loss in a declining market.

Securities and advisory services offered through SagePoint Financial, Inc. (SPF) member FINRA/SIPC. SPF is separately owned and other entities and or marketing names, products or services referenced here are independent of SPF. 

Images provided curtesy of BlackRock investment Management.