No one knows when the next market crash or recession will happen. But if you’re like most people, you want to be prepared for it when it does. One of the best ways to do that is to make sure your investment portfolio is ready for change.

How To Prepare

Remember to consult with a financial advisor like Fundamental Global Investors before you make any changes.

Start by Reviewing Your Goals

The first step in preparing for change is to review your goals. What are you saving for? Retirement? A new home? College tuition? Be realistic about how much you’ll need and what kind of return you can expect from your investments.

Then Assess Your Risks

Next, assess your risks. Do you want to take on more risk in order to potentially earn a higher return? Or are you comfortable with a more conservative portfolio that offers less risk but also lower potential returns?

Review Your Asset Allocation

Your asset allocation is another important factor to consider. Do you have the right mix of stocks, bonds, and cash? How much exposure do you have to international markets? Are you overweight in any particular asset class?

Rebalance Your Portfolio

If your portfolio has drifted away from your original target allocations, now is a good time to rebalance it. This involves selling off some of your winners and buying more of your losers in order to get back to your original target allocations.

Stay Flexible

The final step is to stay flexible. The market can be unpredictable, so be prepared to make changes to your portfolio as needed. If one asset class starts to outperform, you may want to sell some of your holdings and invest in a different asset class.

By following these steps, you can help ensure that your investment portfolio is ready for change. And if the next recession does hit, you’ll be prepared to take action and protect your hard-earned money.

Consideration

In light of some recent changes in the stock market, many investors have been quite worried. The Federal Reserve has been gradually increasing interest rates for a long time now, and it seems to be on a path to continue doing so. This means that having cash investments will start yielding more money as time goes on, but only if the cash is invested into something that rises with interest rates. Bonds are good for this purpose because they tend to yield higher rates than standard savings accounts or checking/money market accounts from most banks.

With any luck at all, one will be able to earn a sizable return on their invested funds by purchasing bonds at their current low prices and selling them when demand returns and prices rise again.

If the Federal Reserve continues to raise interest rates as planned, there is a very real possibility that prices of bonds will start going up. This happens because bonds tend to be driven by current and expected future interest rates–the more attractive the bond, the higher its price will go.

Conclusion

If you are looking for more information on what to do when preparing for change with your investments, please consult with a financial advisor. They will be able to help you create a plan that fits your specific needs and goals.