Five Ways to do a Spring Cleaning of Your Portfolio
Tips on how to improve your investments.
- Duration 7:17
- Date Apr 11, 2012
Tips on how to improve your investments.
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Eight women got -- all about this market and what's going on and -- -- had -- Position yourself in the whole thing.
-- Mardi act senior wealth strategist for premier financial advisors for such securities here with -- -- now you're seeing that people should do little spring cleaning not.
Now -- now's the time to take a very good look picture individual portfolio.
And reassess where you're -- Look at what's going on in terms of your asset allocation.
And think about selling some of the winners and perhaps adding to some of your positions that haven't done quite how often do you recommend people look at their portfolio because it can't just she wants here anymore I tell you great.
It has to be as frequently as you feel comfortable doing it with your financial advisor.
You must always -- have your eye on the ball.
Never take your eye off the ball it used to be advisors would sit down into quarterly yeah portfolio reviews.
I think it needs to be done more frequently and the reason is it's simply because.
The markets can be so volatile -- so volatile -- and there's so much predict unpredictability.
So this spring cleaning is one of the many.
Cleaning so to speak that you do you of your portfolio.
And here we are we got a market that was down five days many people saying it's gonna tip the bulls and the bears -- very you know they're just divided is all -- But you're saying people should sit down and then -- really thing about reposition.
Yes I do I think so if you think about it through march NASDAQ was up.
-- almost 17%.
The S&P was up 12%.
And the Dow was up 8% right and we gave back some of those gains over the last five days in this over and what I'd like to refer to as an overbought rally.
So indeed -- Investors should sit with their advisors.
And their advisors should take a look ahead at it and reassess.
Are there any family changes that have -- are there any liquidity needs that have arisen.
In the last quarter so.
Quarterly reviews are important but no more important now because there's a lot of their -- changes going on in the market.
The greed and you know he eats up to three -- giving -- three different thoughts.
So I think it's a difficult time to be an investor quite frankly.
So what are some of the things are suggesting people do because I presume you are looking at it as accounts from a conservative -- It it really all depends on.
My client's risk tolerance.
And and their time allies -- every client has different needs when it comes to the market.
And I I believe you really have to take a look and address those needs now the way I do with.
Most of my clients is they have a core investment strategy -- a satellite investment strategy and I like to think of that satellite investment strategy.
As being very tactical so you can move and be very fluid depending on what the market -- Good year five.
We see you spring cleaning up in the first -- -- -- globally bonded -- -- -- talking about actual.
I'm looking at overseas bonds for many my clients.
That it again whose risk tolerance.
And investment strategies and goals.
Indicate that fixed income should play a role in their portfolio quite fixed income in the states by fixed income oversees -- I say diversified amongst fixed income fair -- -- -- now that makes perfect sense to me.
And look global act local -- presume you're talking big multinationals I am talking about big multinationals large cap growth stocks large cap value.
And you can achieve this either by investing in mutual funds.
Exchange traded funds -- the individual equities talk about the European shopping -- -- Well the valuations have been very very attractive in Europe car -- So we're focused on the core.
Such as -- the UK France Germany Switzerland and the Netherlands and in particular.
I'm recommending that among many sectors the financial sector is one very strong sector that we should look at Citi European financials.
Can you do that -- NE TF.
You can do that for -- -- yeah that's right.
And that not Cambodia -- not a lot of people talk about Vietnam as the next up and coming emerging market.
-- emerging markets arguably some of them have emerged right we got to move on from the brick countries that.
Brazil Russia India.
When -- missing China and that get -- We got to move on media -- and look at Vietnam Cambodia places like that.
I agree I I do believe that the emerging markets as well as the developed markets have a place in one's portfolio.
But a place like Cambodia which just opened up its stock exchange.
Last year hasn't had any companies listed as recently as march 1 however.
There is discussion that the government.
Utilities Telecom ports will be listed in that exchange so.
I would recommend that it at an investor and in in particular with my clients talk to their advisors about new opportunities for growth.
But when you call this party you're a lot of money you know this is the risky part of my portfolio from putting in Cambodia.
-- I couldn't agree on what part I could live without basically hike -- Craig I couldn't agree more that's exactly right and that falls under the satellite.
Tactical global tactical Alec allocation strategy that -- referred to -- -- breaks he basically saying.
Have you core portfolio and have a triple play money basically where you can take some risks and makes and that's something swelled to.
-- again it depends on my client's risk tolerance I think I never like to look at.
Placing bets in making risky bets in one's portfolio because.
Money is so hard to come by.
Whether you whether I'm dealing with my ultra high net worth clients with a lot of money -- that where that where the upper middle class middle class clients so I never -- Want to take risk with the portfolio so maybe we might consider.
As a 2% -- 5% weighting.
In a in a country sector that we haven't thought about before for diversification.
So -- right now are I mean are you heavily weighted in equities or fixed income right now once again it depends on my on the client's risk tolerance and then time horizon and their investment goals but.
I do favor equities -- they've been they've the valuations are extremely attractive right now.
Globally and and we're seeing that and you would have missed a big -- the first quarter that's for sure and you and you would have missed a big run in the last conversation that I want to have with my clients is we missed the rally exactly what about cash.
I how much cash that we -- in these days well -- -- Fed Chairman tells us.
That you can't make money because -- in cash more or less with inflation running annually -- 2%.
You're losing money if you're in -- right so cash is your enemy.
And I and I advise my clients keep his little in cash as possible but again it all depends on their liquid -- he is completely but I think you can -- tips are really good.
Mark Mardi -- senior wealth strategy premier financial advisors first -- securities is there a website where people go for more information just thinking goes to www.
-- advisors dot net excellent market should be here thank you for having I love big big globally bonded.
That's good -- and Cambodia Unifirst president -- that's -- that's good stuff mark thank you.