Research.LeutholdGroup

Time For A “Donut” Break?

Despite a resurgence in Small Cap stocks and Commodities, it still feels like an “S&P 500 World” for asset allocators. The financial media remain obsessed with S&P 500 targets, S&P 500 earnings, and S&P 500 stocks. And why wouldn’t they be? The S&P 500 beat the hypothetical, broadly diversified “All Asset No Authority” (AANA) Portfolio for the ninth consecutive year through 2020—and already leads AANA by more than 3% this year. In 2020, it was Commodities and REITs holding back the AANA Portfolio. In 2021, it’s Gold and Bonds.