Investment Tips For 2018
While the U.S. media focused on the rise of U.S. stocks in 2017, it was actually international stocks that gave U.S. stocks a thumping. U.S. stocks gained about 21.6 percent. International stocks gained 27.4 percent.
But it’s now time to rebalance. Stocks have risen a lot. That means your portfolio allocation will have far more stocks than it did on January 2017. So, here’s my tip for the New Year.
Sell some of your stock market assets.
Add the proceeds to a short-term or broad market government bond market index fund. I know, I know. You probably don’t want to do that. “Bonds are dull,” you say. “Bond interest rates are low.”
Unfortunately, most people buy bonds after they have fallen. They like to buy stocks after they have risen. Investors, on aggregate, are a pretty crazy bunch.
If you don’t want to rebalance (because you’re starting to speculate) then hire a financial advisor to manage a diversified portfolio of index funds. They can do the rebalancing for you.
My book, Millionaire Teacher, shows what kinds of advisors you should use.
If you’re an expat, I’ve listed advisors you could consider in my newly released book, Millionaire Expat.
Have a great New Year!