As we turn the calendar to the new year, it’s a good time to evaluate your portfolio and your current asset mix. The markets have rallied back from their low in March of 2009 when the DJIA was at just above 6,500 to the current level of around 11,500. At the time, I told my readers it was a golden opportunity to buy. In fact, here’s what I said in October of ’08, just a few months from the complete bottom of the market:
As of 4 PM EDT, the DJIA has dropped 6% and the Nasdaq has tanked even further at over 9%. Many people are trying to hoard their money in fear they will lose everything, so what we are witnessing is just that, people are switching from the riskier equity markets to government insured bonds. The greatest thing about this is that stocks are a steal right now, and are set to rebound as soon as a positive announcement regarding a bailout comes. You can expect the markets to continue a decline until good news comes and an explosion in the market, as too many people fear the unknown. I’m telling you now people, buy, buy, buy – you won’t see prices like this for a long time to come
It’s important to manage your assets and keep an eye on what’s happening around the world, international stocks may not be as ideal as they were a year ago for example.
Here’s an article I wrote a while back on the basics of asset allocation. And here’s another article on helping you understand what asset mix you should choose based upon your circumstances. And finally, here’s another article for my younger readers (20 to 30 somethings) that show’s them how I selected my current asset mix a year or so ago.