With 2015 now in the books, it’s time to look back on the year that was.
It was another year of surprises: after the gurus continued to predict higher interest rates, the Bank of Canada shocked almost everyone by lowering the overnight rate twice in 2015: first in January, and then again in July. That spelled another year for higher-than-expected bond returns. And while it was a disappointing year for equities in almost all regions, the plummeting Canadian dollar caused the value of foreign equities to soar.
All in all, a diversified portfolio did quite well in the “year when nothing worked.” Yet another reminder of why it is so important to hold all of the major asset classes all the time and ignore the noise. Let’s look at the details.
The building blocks
TD US Index – e (TDB902)
TD International Index – e (TDB911)
Source: TD Canada Trust
Vanguard FTSE Global All Cap ex Canada (VXC)
Source: Vanguard Canada