- Benjamin F. Edwards - https://benjaminfedwards.com -

Year-End Financial To-Do: Time to Review and Rebalance Your Portfolio

By Bruce Buerkle, CFA, Senior Vice President, Manager Securities Research Support

The popular averages rebounded strongly this year from the significant pullbacks that occurred during December 2018. This contributed in part to the markets posting negative returns last year. Multiple closing high records have been achieved during 2019 by the DJIA, S&P 500 and NASDAQ Composite. A few of the variables that may have impacted your investments this year are highlighted here. Jobs growth remained favorable as the October 2019 U.S. Unemployment Rate was a low 3.7%, non-farm payrolls continued to be strong and the labor force participation rate rose to 63.3% during October, the highest since 2013.  Third-quarter corporate earnings came in better than expected, primarily due to lowered expectations. More cautionary outlook commentary posted earlier proved to be conservative. Market resilience was evident despite continued headline news stories and Twitter postings about tariffs and trade that led to higher day-to-day volatility. Recessionary fears cropped up when the yield curve inverted, and much was written about the validity of this as an economic indicator.  Overall asset class performance during 2019 to date differs from last year end. Your investment mix, therefore, may have shifted away from your target portfolio, and this presents a great opportunity to review your investment assets to be sure you continue to be allocated appropriately to meet your long-term goals. There are a number of key points to take into consideration and your Benjamin F. Edwards & Co. financial advisor has the tools to provide the information needed to help you work through these questions.

No investment strategy, including rebalancing, asset allocation and diversification, can guarantee a profit or protect against loss in periods of declining values. Rebalancing investments may cause investors to incur transactions costs and, when rebalancing a non-retirement account, taxable events will be created that may increase your tax liability.

Benjamin F. Edwards & Co. does not provide tax advice, therefore it is also important to consult with your tax professional for additional guidance tailored to your specific situation.