We’re almost two full months into 2017, and for investors, figuring out how to best field funds might feel like staring at a cloudy sky while standing in a pasture of freshly planted seeds, just waiting to see what the weather does next. Like weather, today’s stock market can be temperamental; you might be jolted by forecasts of stormy dips in value, or disheartened by predictions of a long, icy recession.
Holding stake in a market that seems so volatile might rack your nerves; that’s okay. Even the most whirlwind of fluctuations eventually stabilize, and in the meantime, it’s important to take advantage of forecasts made by expert investors, they allow you to safeguard your financial seedlings and prepare contingencies to combat the stock market’s erratic nature. To help you weather any Wall Street storms this new year might bring, I’ve listed a few expert tips on how to best grow your portfolio in 2017.
Review Your Investments
If the only thing you know about the stocks in your portfolio are their company names, your first step should be to familiarize yourself with a general image of what those companies do, how much they sell and what they earn. Additionally, knowing a stock’s market cap, and area of industry (healthcare, technology, manufacturing, etc) will help you determine whether or not a stock is meeting performance expectations relative to risk and market trends. Also, be aware of your reasons for first purchasing stock, and whether those reasons still hold true to your current strategy.
Don’t Mind the Daily Market Frenzy
Getting caught up in the dips and staggers of daily market fluctuation will net you nothing but unnecessary stress. Everyday market shifts are as common as they are fleeting, and focusing too much on them could drive you to make impulse decisions which damage overall goals. Drown out the day-to-day static; instead, hone in on lasting trends and build a portfolio that profits from long-term habits of industry sectors.
The political turbulence which has overtaken much of the globe could mean significant changes in the policies of world’s most influential nations. If norms shift substantially, it could mean that the popular 60% stock – 40% bond portfolio split might see sinking performance 2017. While the 60-40 split is still a decent scheme (for now), investors looking to capitalize might consider bond alternatives such as preferred stocks, high-dividend stocks, master limited funds, and real estate investment trusts.