Returns Review: 1Q16
How did the markets measure up to p2p returns? Tune in to find out!
Here’s some news, and it’s not April Fools.
The S&P 500 returned 0.8% for the first quarter of 2016, after a dismal -2.1% for all of 2015. The Dow ended with a 1.5% return for the first quarter of 2016 after a disappointing result in 2015 of -3.5%.
Meanwhile, the Barclays Agg, which is kind of like the S&P for bonds, scored a 2.61% total return for the first quarter of 2016, after a dismal -1.6% for all of 2015. The S&P US Corporate Bond High-Yield Index registered a total return of 3.4% for the first quarter of 2016 after a -4% return for 2015.
How does a p2p portfolio stack up against these returns? Better. Way better. I’m excited to get to the details, but first let’s remind ourselves why p2p should be be a cornerstone of your portfolio.
Remember what was happening in August of 2015? The markets were a mess. Volatility was through the roof. And people were hurting. And do you also remember what was happening in our p2p portfolios during that same period? It was smooth sailing back in August, and September, and October, and November, and on and on. The reason this is the case is because p2p lending is a pure investment in the economic units that make up our economy, and these units are not numbers, they are people! And the return on our investment does not swing wildly due to changes in global money flows.
So let’s talk returns. Our assertive strategy, designed to perform best in a strong US economy, returned 11.2% in 2015, and is off to a strong start with an average 9.7% annualized, after fees and expenses, for the first quarter of 2016 [after fees and expenses].
Our balanced strategy, targeting moderate returns with economic resilience, provided returns of 10.5% on average in 2015. For the first quarter of 2016, the balanced strategy is returning 9.3% annualized after fees and expenses.
Our conservative strategy, designed for consistency even in a weak economy, provided returns of 5.3% on average in 2015. For the first quarter of 2016, the conservative strategy is returning 5.2% annualized, after fees and expenses.
Every investor is unique, and p2p may not be for you. But the numbers speak for themselves.