Overall 2016 was a good year for investors as all major asset classes were positive for the year.


In Q4 2016 the U.S. stock market set new highs while other investments struggled. International developed markets, emerging markets and global real estate were all down for the quarter. Bonds also struggled amid rising interest rates (as interest rates rise bond prices go down). The U.S. Bond market was down 2.98% and though that type of volatility is a normal part of investing, coming from the bond side it is a decent drop since bonds are generally seen as the ballast in a portfolio, providing stability. In fact, that is the worst quarter for bonds that I could find going back 15 years.


For a detailed market overview covering Q4 and all of 2016, click here.


Planning note: Given the drop in bond prices in the last quarter and the low interest rate environment we’re in, make sure you understand the risk of the bonds in your portfolio. Bonds are often a substantial allocation in portfolios, especially those portfolios labeled “conservative”, so reviewing and understanding that risk is important. Contact me for a complementary portfolio review.


Advisory services offered through Arbor Point Advisors. Securities offered through Securities America Inc., Member FINRA/SIPC. Arbor Point and Securities America are separate companies. CA Insurance #0E88557

Rancho Bernardo Financial Planner