For the last couple of months, we’ve been talking about the importance of rebalancing, and that was certainly something we did a lot of in May. That allowed us to take advantage of the stock gains, and keep things steady for our clients. In the short term, did we make big gains? No, but in the longterm that rebalancing is going to be important. Here’s why:
Did you know that June is ranked 10th out of the 12 months of the year for average total return performance? Just in the first week of June, we’ve seen a lot of volatility in the market. As we mentioned last month, volatility happens in a thinly traded market, which is traditionally what happens at this time of year. But that’s not all. The poorest 2 performing months, August and September, are also just around the corner. That’s why, while we didn’t make a lot of money in May, we didn’t lose a lot either, and the rebalancing we did during that time will be key for weathering the upcoming months – which as history tells us, are the poorest performing months in the market.
Does that mean we’ll stop participating and managing your money? Absolutely not! We continue to participate for clients by diversifying their portfolios with alternative investments.
If you, or a friend or family member, have questions about the market, or would like to talk further about rebalancing, please give us a call. Stay healthy, wealthy and wise…and certainly, stay tuned.
Bob Wamhoff | Wamhoff Financial Planning & Accounting