Dec 26
Portfolio Planning
As 2009 approaches, I assume everyone finished their tax selling and has a plan for their portfolio going forward. I examined one portfolio this morning and found three asset classes under target. Limit orders were placed for each of those asset classes as cash was available. Had this not been the case, I would have sold from asset classes that were over target and rebalanced.
January is a month to think about rebalancing the portfolio. Be sure you know what asset classes to include in your portfolio. At the very least, I would include the following asset classes. The first six are what I refer to as the “Big Six.”
- Large-Cap Value
- Mid-Cap Value
- Small-Cap Value
- Large-Cap Growth
- Mid-Cap Growth
- Small-Cap Growth
- International (developed countries)
- Emerging Markets
- REITs
- Bonds
After those ten asset classes are populated, then you might consider adding commodities. If you are able to analyze stocks, then a few choice ones might be added to the portfolio. “Creme List” stocks are available to Premium readers.
Lowell Herr
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