Allocation & Performance Updates
June, 2021
- Our current general recommended asset allocation is 65-70% equities, stable from recent levels; 20-25% bonds, stable from recent levels; and 10% cash, stable from recent levels.
- Standard & Poor's 500 corporate earnings per share are calculated to have been down 14.0% for the full year 2020 vs. 2019, per Yardeni Research at https://www.yardeni.com, YRI Forecasts . They are expected to be up now almost 36% in 2021 on a consensus basis according to Yardini Research. Year-over-year twelve month trailing earnings growth is calculated to have troughed in the fourth quarter of 2020. It is expected to rise to the above referenced positive growth level for the full year of 2021. Current corporate profit growth estimates for 2022 are at 12%. Again, all on a consensus basis per Yardini Research.
- General domestic equity markets have now rebounded to achieve all-time highs from corona virus impact lows in March of 2020. This is due to changing expectations regarding economic and corporate profit growth, consistent with the above 2020 and 2021 observations. Continued government stimulus, and corona virus vaccine progress are also significantly contributing to this potential earnings growth.
- Our moderate and aggressive balanced benchmark accounts were up 4.12% and 6.22%, respectively, year-to-date through May, 2021. They were up 23.00% and 28.83%, respectively in 2020. Please see our Performance Data Sources section for appropriate benchmark comparison sources. We continue to assess our asset allocation percentages relative to growth expectations and market conditions on a regular basis.