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: 12-07-2006, investing, mutual funds, personal finance, Stocks
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