It is a new decennium, and we close the books of 2019 as we leave yet another year behind us. New Year is an excellent time to pause for a minute and reflect over the past 12 months. For me, it is also a great opportunity to take a look of how my All Seasons Portfolio performed this first year, and, most importantly, what I have learned in the process.
The structure for this post, is to first have a quick recap month by month from January to December of my investments, and after that, we will close the chapter of 2019 with some lessons learned, and new thoughts for the year to come.
I did not do any rebalancing this first year, as I only added funds by buying ETFs in asset classes where I was underweighted. Despite this, the profits turned out pretty well this first year, and well in line with the theory. In theory, the All Seasons Portfolio should yield about 4-5% per year as standard, and then by rebalancing, this yield will be topped with 1-2% more, providing a low risk return of about 7%. That is very much in line with the stock markets average return over time.