Portfolio Update 11/23/07 Emerging Markets and Domestic Bonds

Updating at the end of the week tends to smooth over the craziness that happens day to day. This past week stocks plummeted mid week, only to recover much of the loss on a big Friday Rally.

The WylieMoney 20 Mostly Managed Portfolio retains the lead, but the simple Three Fund Index portfolio is proving to be a contender.

When you look at the performance of all of the portfolios since May 1st, you will find that the top performer is Emerging Markets though these past two weeks have ended with a sharp decline in Emerging Market funds (SSEMX down over 13% since Halloween!). What may be surprising is that in many cases, the second and third best performers, better than general international index funds, are domestic bond funds. Click on the images below for a larger view. Are you reading anywhere else that domestic bonds have out-performed even international equity funds (excluding emerging markets) over the last 6 months?

When investors move from stocks to bonds, that often portends ruin:

Will that be the case for 2008? Only time will tell.

WylieMoney 20 Mostly Managed

Three Fund Index

Lazy 20 Mostly Index

WylieMoney Slowly

ETF 20

S&P 500

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