Last week, Feb 27-Mar 3, 2017, U.S. stocks increased for the fourth straight week. The Federal Reserve (Fed) have taken note of these positive surprises, and many have stated that a short-term interest rate increase would be appropriate at its next meeting on March 15. And next week light vehicle sales will be released, which should help move the market, whether that be positively or negatively.
Last Week’s Stock and Bond Index Performance (Feb 27-Mar 3, 2017)
- NASDAQ 0.4% (YTD 9.1%)
- Dow Jones Industrial Average 0.9% (YTD 6.3%)
- S&P 500 Index 0.7% (YTD 6.4%)
- U.S. Aggregate Bond Index -0.8% (YTD 0.3%)
How did my retirement portfolio perform last week (Feb 27-Mar 3, 2017)?
Below is a snapshot of my three biggest retirement portfolio mutual fund movers (and losers!) in terms of percentage gained last week.
The below mutual funds are held within my work 401(k) plan as well as two separate Roth IRA plans. All accounts are held with Vanguard.
- Vanguard REIT Index Fund (VGSLX) -1.4%
- DFA U.S. Small Cap Value Portfolio (DFSVX) -0.7%
- Vanguard S&P 500 Index Fund (VFIAX) 0.7%
Can I Beat the Stock Market?
I am actually not trying to “beat the market” with my retirement portfolio…I am trying to match it. I do have alternative indexes in my retirement portfolio to help possibly beat the market, e.g. Small Cap Value, REITs, International, and Emerging Markets. I am purposely over-weighted in Small Cap Value, which at times helped me beat the market and at the same time lag the market. I am actually considering rebalancing my allocations a bit so I’m not so heavy in Small Cap Value, but I do like its potential. I’ve read countless academic articles about how it has historical beat large cap stock and the S&P 500. I am investing for the long haul so even though I am not beating the market right now, I feel confident about my future earnings/potential.
With that said, if I can beat the market I will absolutely take it (obviously)! In the last 90 days my portfolio is up 5.84%, whereas the S&P 500 is up 8.72%. So I am lagging the market, and this is the first time I am behind in months.
I am a liberal arts major and I am my own financial advisor. My goal with this personal finance blog is to show all Millennial’s that you have the power to take control of your personal finances through self-educating on money and finance, and by striving to become financially literate. That is what I have been doing for years now, focusing on becoming financially literate, so I can one day become financially independent. I’m trying to prove to Millennial’s that we can all do this and thrive with money. Follow my blog as I highlight relevant personal finance topics pertaining to us Millennial’s.