Bond equity correlation reversing?

coastline

Bobziz said:

Thanks John. I acknowledge that my chances of beating the market are low, which is why the majority of my portfolio is in an all world tracker. At this point my active funds have enabled me to get well ahead of the market, but I appreciate that this may swing the other way soon if I don't review my selection.

I have this " Market Summary " bookmarked as a guide. All symbols can be opened in chart form.  Regarding individual stocks I find it's handy to look at the sectors to see short term performance. Usually UK sectors have a similar trend.
Market Summary | StockCharts.com
Growth and Value
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From the Market Summary
IWF | SharpChart | StockCharts.com
IWD | SharpChart | StockCharts.com
Article today
3 reasons the rise in bond yields is gaining steam and rattling the stock market - MarketWatch

MaxiRobriguez

Bobziz said:

Thanks all, really helpful. So the fact that my portfolio is overweight in growth and underweight in financials and energy in particular is something that I think I need to consider. 

You're likely overweight growth because growth has outperformed for a number of years, so has begun to dominate the passive investments. If that reverses and value begins to outperform then it doesn't matter if you're in a passive investment, the rebalancing will occur naturally.

It's only really a problem if you've bought growth-only funds and now those funds take up a bigger % of your allocations than you would like.

Bobziz

MaxiRobriguez said:

Bobziz said:

Thanks all, really helpful. So the fact that my portfolio is overweight in growth and underweight in financials and energy in particular is something that I think I need to consider. 

You're likely overweight growth because growth has outperformed for a number of years, so has begun to dominate the passive investments. If that reverses and value begins to outperform then it doesn't matter if you're in a passive investment, the rebalancing will occur naturally.

It's only really a problem if you've bought growth-only funds and now those funds take up a bigger % of your allocations than you would like.

Indeed, but is the rebalancing in a passive akin to shifting a super tanker ?

I'm 56% growth, 14% value, so a rapid tweak in direction may be beneficial.

Thrugelmir

Bobziz said:

I acknowledge that my chances of beating the market are low, which is why the majority of my portfolio is in an all world tracker.

A world tracker is a low target to beat. 

Bobziz

Thrugelmir said:

Bobziz said:

I acknowledge that my chances of beating the market are low, which is why the majority of my portfolio is in an all world tracker.

A world tracker is a low target to beat. 

Not for someone with 6 months experience. Small steps...I'm in sponge mode, learning how to invest and finding out what kind of investor I am.