Quiet Before the Storm

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Has anyone noticed how quiet the financial markets have become since the Q4 2018 stock market drop and subsequent Q1 2019 rebound?  In fact, the S&P 500 is back up to the highest point ever reached in September 2018.  Further, since September 2015, the S&P 500 has risen over 50%!  The gains are even more impressive if you look at it from the end of the financial crisis in 2009.

Why are we pointing this out now?  Because there might not be a better time to rebalance your portfolio.  Before the next storm hits. 

For example, let’s say that your US stock allocation is now sitting at 70% of your total investments and just a few years ago it represented 50%.  Consider selling that 20% and “pocket” the gain and reallocate it to other asset classes that haven’t been quite as fortunate as US stocks.  Your personal investment asset allocation policy should drive the decision as to where that 20% gets redirected.  For example, if you are now under allocated in foreign stocks because they have not performed as well as US stocks, they just might be your answer.  Are foreign stocks the next driver of portfolio returns?  We don’t know.  But, what we do know is that storms always come.  Sometimes they are mild and sometimes they are vicious.  Protect your investments by rebalancing from time-to-time, especially when things are quiet.

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Happy 15th Anniversary Kelly

We wanted to take a moment to celebrate a milestone here at Addis Hill – 15 years of dedicated service from Kelly Bashore! Kelly is now

Happy 15th Anniversary Kelly

We wanted to take a moment to celebrate a milestone here at Addis Hill – 15 years of dedicated service from Kelly Bashore! Kelly is now

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