Sometimes it is Good to Under Perform the S&P 500

Many people are comparing their balanced portfolio to the S&P 500 for 2014.  Admittedly the S&P 500 was a top performer in comparison to the rest of the global market.  It is important to remember the S&P 500 is only one asset class - and in a Balanced portfolio it would only represent about 15% of the large cap stocks.  Prior to 2013 the S&P 500 had outperformed the International Developed and Emerging Market stocks only on three occasions since 2000.  In the long run a globally well balanced portfolio is the best position to maintain.