Annual Rebalancing Steps

Annual Rebalancing Steps: Perspectives from a Seasoned Financial Advisor As you begin to receive your year-end statements, it will be tempting to focus on how well the markets performed – because it really was a year for the record books. The year 2017 saw the DJIA set 71 all-time highs, surpassing the previous record of 69 set in 1995. We saw NASDAQ up 28%, the DJIA up 25% and the S&P 500 up 19%. And at almost nine years old, this bull market is now the second-oldest and second-strongest in history. Given last year’s market performance, it would be a safe bet that many investors need to consider rebalancing, because they might now be overweight or underweight certain asset classes – and therefore positioned in a way that is inconsistent with their risk tolerance and goals. Now is the Time to Think About Rebalancing The reality is that the market …