Looking Ahead to 2015
By: Tim McPartland,
We’ve been asked by a number of readers about our plans for a 2015 Model and as such have begun to ponder how we want to handle the new year.
In 2013 we totally liquidated the portfolio at the end of the year–that was a mistake as the various allocations and performance allow us to continue with our ‘experiments’. Previous models from 2008-2012 were lost when we made the switch from the Yahoo Sitebuilder website platform to the current platform and as such we only have broad ‘approximations’ as to performance and portfolio construction. To some degree that is fine as everybody investing in preferreds and exchange traded debt in that time period looked like a true expert. But a rising tide lifts all boats and not until 2013 did one have to work hard to earn a return. In 2013 we got caught holding bunches of investment grade issues that got totally hammered in the taper tantrum in the spring/summer of 2013—in hindsight we should not have liquidated that portfolio as all those issues climbed back into the black a year later and it would have performed fine. As it was we rebuilt the portfolio into the 2014 Model. Additionally we added the 2014 Short/Medium Duration Income Portfolio. We also have 2 other active Models—the2013/2014 Static Investment Grade Modeland the 2013/2014 Static Junk Grade Model.
All of these models help to formulate our thinking for 2015. At this point in time we have not finalized a 2015 plan, but we know for sure that the 2014 Model will continue to run to contribute to our knowledge database.