U.S., International, and Emerging Stocks continue to roar upward in the 3rd Quarter as the indexes increased 4.6%, 5.6%, and 7.9%, respectively.
We have attached a Market Review for the 3rd Quarter of 2017 (July 1- September 30) that further dives into the details of the quarter.
As U.S. stock indexes bounce around all-time highs, it is important to ensure your allocation of stocks and bonds matches your risk profile. Due to the recent stock surge, your stock allocation may overweight your intended target and now could be a great time to rebalance your portfolio (sell what has increased and buy more of what has been flat or decreased). For more information on portfolio rebalancing, we have attached a white paper from Vanguard. Keep in mind, when you rebalance, you want to do it in the most tax efficient way possible.
At The Financial Planning Company, we do not know where stocks are headed in the short-term. We remind clients to not get caught-up in the excitement of a bull market. Now is not the time to increase your stock exposure, unless your risk situation has changed. Your stock exposure should be a result of your long-term goals and should not shift with the highs and lows of the market.
