Well, as we close the day Friday, February 23, 2018, stocks are back up to the levels where we did our reallocation of assets a month ago. So, our portfolios are doing OK.
If they held on, investors and funds that are very heavy in US stocks have partially recovered also. You can almost draw a horizontal line across the highs of SPY for this week and the previous two weeks, with lots of scary dips along the way.
It will be very interesting to see what transpires next week. Like a stretched rubber band or guitar string, when it is plucked, there is a big fluctuation which then gradually subsides, and I would not be surprised to the smaller ups and downs for a few more weeks before the market decides to resume the uptrend or follow through to the downside.
Our clients have had a much smoother ride because we were diversified, and we reallocated based on the behavior of the asset classes as it changed, rather than trying to guess what would happen next.
A much better approach, in my view.
Have a great weekend.