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Rebalanced Your Portfolio Lately?

When was the last time you addressed this prudent strategy? Many investors only consider this practice after a sharp market decline.  However, rebalancing should occur in times of both over or under performance in any asset class.  Recently, there have been some very compelling reasons to consider utilizing this strategy. 

On July 19, 2007, the Dow Jones Industrial Average closed at yet another all-time high of 14,000.41 setting its 32nd record high this year. The broader S&P 500 recently broke its all-time high of 1,527.46 set in March 2000.

One view of recent events is that the stock market will continue to show positive returns year after year ad infinitum. Another view is that markets are generally not well behaved and do not generate consistent, steady returns year after year.

Are stocks overvalued and due for a major correction? No one is absolutely certain, but there are a host of reasons to watch this unprecedented run-up in the global equity markets with caution. Among them, persistently high energy prices, a softening U.S. housing market, continuing fallout from the sub-prime lending fiasco, geopolitical unrest and up ticking inflation.

Therefore, now may be an opportune time to rebalance your investment portfolio. Rebalancing is primarily about risk control; making sure your portfolio isn’t dependent on the success or failure of one investment, asset class or style. Modern portfolio theory suggests that adding an alternative investments class, such as commodities and managed futures, can reduce overall portfolio risk and enhance returns. This simple allocation adjustment may help to improve your long-term results.

If you feel that now is a good time to review your investment strategy, we should talk. RCG Alternative Investments provides clients with educational resources and quality alternative investment solutions to help them achieve optimal portfolio diversification.

You may contact us directly at (877) 250-3583 or through email at info@rcgai.com to discuss your investment needs in detail.

Rebalance your assets on your terms, not on those of the market.

It's your money. It's your call.

Visit us online at www.rcgai.com

Disclaimer The risk of loss in trading futures and options can be substantial, therefore only genuine "risk" funds should be used in such trading. Futures and options may not be a suitable investment for all individuals and individuals should carefully consider their financial condition in deciding whether to trade. Option traders should be aware that the exercise of a long option will result in a futures position. Information herein has been obtained and prepared from sources believed to be reliable; however no guarantee to its accuracy is made. Comments contained in these materials are not intended to be a solicitation to buy or sell any of the commodities mentioned. Past performance is not indicative of future performance results. Opinions expressed herein are the options of the author only and not the opinion of any firm the author may be affiliated or associated with.