Investing Newsletter - Jan 2014
US high quality bonds had their worst investment performance since 1994.
US stocks had their best investment performance since 1997.
If you feel the urge to increase your stock allocation, consider waiting to do so.
If you were tempted to reduce your stock exposure in 2012 but stayed the course and benefited from the high returns of 2013, consider trimming your equity exposure now.
Short term stock market predictions should be uniformly ignored and a longer term perspective adopted.
Long-term valuation measures indicate that longer term returns could be below historical averages.
Lower risk hybrid investments continue to offer more downside protection than stocks.
First trust deeds should continue to outperform high quality bonds.