I met with the team that distributes one of the fixed income mutual funds that we use in client portfolios. We were discussing their exposure to the riskier parts of the credit markets which had increased notably. I mentioned that I was perfectly comfortable with the positioning because this is the riskiest allocation within my fixed income sleeve. They were surprised. For most of their clients, this same fund is considered one of the least risky holdings.

I met with the team that distributes one of the fixed income mutual funds that we use in client portfolios. We were discussing their exposure to the riskier parts of the credit markets which had increased notably. I mentioned that I was perfectly comfortable with the positioning because this is the riskiest allocation within my fixed income sleeve. They were surprised. For most of their clients, this same fund is considered one of the least risky holdings.

Before the bombing in Iran started on February 28th, the global stock index (ACWI) was up over 4% and the S&P 500 was positive. The fixed income markets (+1.85%) and precious metals were also doing well (GLD +22.06%) as interest rates fell with a more positive outlook for inflation.

Your net worth is a simple but important calculation – it’s everything you own, minus everything you owe. Your net worth (or balance sheet) is a snapshot in time. Your net worth today might be a little more or less than your net worth tomorrow depending on the amount in your checking account or the value of your stock portfolio.