Believe it or not, we are already halfway through the 2023 calendar year!
Time to kick back, soak up the sun, and wait… what’s happening in the financial markets? Things look up lately.
Even with a brutal 2022 and the spring bank failures, we’ve still seen quite the rally, largely driven by tech stocks, who are riding the AI wave to huge market gains. Just like in a bear market, we feel it’s important to remind clients of the below.
Review and rebalance your portfolio:
Thrive looks at your investment portfolio and ensures it aligns with your investment goals and risk tolerance. A bull market may have caused certain stocks or sectors to outperform others, leading to an imbalance. Thrive takes this into account during our quarterly rebalances.
Stick to your investment strategy:
It's important to stay disciplined and stick to your long-term investment strategy. A bull market can tempt investors to chase quick gains or engage in speculative trading. However, making impulsive decisions based on short-term market movements can be risky. Maintain a focus on your investment goals and follow your predetermined strategy.
Consider quality and diversification:
While the overall market may be performing well, it's still important to select high-quality stocks or investment vehicles. Additionally, diversify your portfolio across different sectors and asset classes to mitigate risk. Diversification can help protect your investments if a specific sector experiences a downturn. We look to maintain broad diversification in our models.
In conclusion, while markets are on the rise, it’s important to not make emotional or irrational decisions and to stick to your plan.