Thursday, December 07, 2006

I've adjusted from 80/20% Stocks to bonds/cash to a 50/50 mix!


I was thinking about all the recent data coming out and worrying about the softening economy. I have been very happy with my portfolio's performance for the past year, and have only made minor adjustments perhaps once in the last 16 months.

But I was just feeling too uncomfortable with the trends these days. You name it, it seems all the numbers are coming out negative.

Also I felt that the ever weakening dollar is a sign that the signs I am looking at are being seen by investors across the world....why the stock market constinues t go up, I am not sure....but I decided that my 80/20 stock to bond mix was just way too aggressive for such a conservative risk-averse investor as me.

I called my financial advisor and talked to him about changing the mix. Given my risk tolorance, he liked the way I was thinking and agreed.

He suggested a 60/40 mix, but I then suggested 50/50 and without hesitation he agreed. He noted that we had made a great gain over the year and it was wise to take some off the table at this point.

Quite honestly, I am a bit worried at 50%, but much less so than 80%. I am going to look at some other alternatives that might be a bit more stable, but for now I am happy.

More to come as the "soft-patch" is approached.

Labels: , , , ,

0 Comments:

Post a Comment

<< Home