There are no portfolio changes for the week ended March 15. The portfolio remains heavily overweight short dated Treasuries (85%) with some exposure to DM equities (15%). The latter looks like a mistake to this humble scribe but we always follow the model. I looks likely to me that the sharp corrective rally in risk assets since Boxing Day is over. Market participants believe that central banks have delivered a “put” on bond and equity markets. They are trying but they can’t control the inevitable problems in the credit market that will occur as growth slows. The credit market is where the risk lies.
Our week-to-date performance has been a bit better than most asset classes but we still have developed markets open tonight. The 1-year performance is still running above 10% (apologies there was a glitch in last week’s performance table but it understated our returns so was not misleading).
I really hope the portfolio can maintain the performance shown in the following chart.