by Austin Boyce: Portfolio Management; Emerging Advisor; Process Designer

As the year winds down, traditions often take center stage.

For many of us, this includes shared meals, time with family and friends, or looking ahead with resolutions for the coming year.

One important tradition we have at SoundView is to monitor client portfolios to ensure they stay aligned with your investment policy statement and investment objectives. With this info, we can take action to rebalance portfolios as needed. The chart below shows how portfolios would have been impacted over the last fifteen years if a portfolio was never rebalanced.

Year to date, the S&P 500 index is up around 25%, which is on top of a 26.3% return in 2023. As investors, we appreciate these substantial returns, but it’s important to ensure our portfolios don’t drift, potentially exposing us to more risk than we need or are comfortable with. Using the example above, a portfolio composed of 90% equities and 10% bonds has a much different risk profile than one with 60% equity and 40% fixed income. This highlights the importance and need for rebalancing.

At SoundView, our proactive approach to investment planning keeps you on track and addresses issues before they arise. Ask your advisor for more details on your portfolio!