The US economy posted another month of growth in August but at a pace that’s “below its historical trend,” according to today’s update of The Chicago Fed National Activity Index. “The index’s three-month moving average, CFNAI-MA3, increased to –0.18 in August from –0.24 in July, marking its sixth consecutive reading below zero,” a press release issued by the bank advised. The marginal improvement was slightly below expectations, based on last week’s release of The Capital Spectator’s average forecast.
Daily Archives: September 23, 2013
Will The Winning US 60/40 Strategy Keep On Winning?
The Wall Street Journal tells us that tactical asset allocation funds are having a tough time beating simple passive strategies. “On average, tactical funds gained an average 6.9% over the 12 months ended Aug. 31 and 7.7% annually over the three years ended Aug. 31. A balanced portfolio with 60% invested in the S&P 500 and 40% invested in the Barclays U.S. Aggregate Bond Index would have gained 10.2% and 12.1% over the same periods, respectively, according to Morningstar.”