Portfolio Tweaking May Be Needed in Today's Market
IF THE WORLD HAS changed, maybe your portfolio should, too.</br></br>In the wake of last month's terrorist attacks and the current U.S. military response, I wouldn't radically revamp your investment mix. Instead, the idea is to tweak your portfolio, cutting back here, adding a little money there, to reflect some of the startling changes of the past 18 months and especially the past four weeks.</br></br>Consider what has happened. The Federal Reserve has cut short-term interest rates, hoping to avert a recession but raising the specter of renewed inflation. Stocks have shed 30% of their value, yet remain richly valued. Bonds and money-market funds have fared far better, but today offer paltry yields.</br></br>What does all this mean for your portfolio? As you reassess your investment mix, try these four steps:</br></br>Step 1: Take a Stand