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Feb 15, 2021 | Investment Management, Q&A

Is now the right time to revisit my investment strategy or asset allocation?

Man checking his asset allocation on laptop
It is always the right time to revisit your investment strategy or asset allocation. In fact, we recommend that our clients meet with their advisor on a yearly basis, or following a life changing event. This allows us to work with you to:

  • revisit your risk tolerance
  • update your financial plan
  • ensure you are still on track to achieve your goals

While we actively monitor your portfolio, making necessary adjustments on a day-to-day basis, these conversations are critical.


With this in mind, we understand that some of our clients are concerned about their asset allocation following our first U.S. Equity bear market in 11 years this past year (2020). While many of our clients have been through numerous market cycles throughout their lives and were comfortable staying the course during last year’s decline, it can be disconcerting. Significant market downturns are always a challenge but the longer-than-average gap between last year’s peak-to-trough decline in the S&P 500 (-34%) and the October 2007 to March 2009 bear market that preceded it  (-57%) created quite a gut check for all of us.

It can be dangerous to revisit the allocation in your portfolio in the middle of a highly turbulent market, as decisions based on emotion can be detrimental. We have experienced both fear of the market and the fear of missing out compressed into a very short period of time. With both fresh in our mind and the market mostly recovered, now is a very appropriate time to revisit your allocation.

As Yogi Berra once said, “It’s tough to make predictions, especially about the future.” This is never more true than when talking about financial markets, which sometimes seem to have a mind of their own. For that reason, it is imperative to spend time talking about the things you can control. If you’re interested in working on your Investment Management with an experienced Wealth Management Advisor, please contact our team to set up an appointment.

Author: Peter Braden, CFP®
Written: February 15, 2021