We think holding your next seven years of spending in relatively safe bonds is always a good idea. But holding too much in bonds may not keep up with inflation and is not ideal for your long-term investment strategy.
We anticipated Consumer Staples to have a lower expected return but a larger risk-adjusted return and we expected Biotechnology to have very volatile returns with lower correlations to the other sectors. Both of those things happened in 2021.
An initial equal weight strategy of these 26 companies implemented on January 1, 2021 and held without further buys or sells through December 31, 2021 had a +8.64% advantage over the foreign healthcare benchmark.
This quarter, we saw that in 1-year returns ending December 31, 2021, Developed Freedom Investing had a -0.12% disadvantage, Emerging Market Freedom Investing had a +1.27% advantage, and Overall Freedom Investing had a +0.21% advantage.
This quarter, we saw that in 1-year returns ending September 30, 2021, Developed Freedom Investing had a +0.70% advantage, Emerging Market Freedom Investing had a +1.64% advantage, and Overall Freedom Investing had a +0.71% advantage.
Our Gone-Fishing Portfolios are free to use portfolios that take advantage of the no-transaction-fee, low-cost ETFs or mutual funds of each major custodian. Over the years, we’ve changed the funds and the allocations as new research or securities reveal improvements.