Why Now Is the Perfect Time for a Mid Year Portfolio Review

After a dismal end to 2018, stocks appear to be on the rebound in the second half of 2019, regaining more ground than what was lost during one of the worst December investing periods on record.

For those investors who stuck it out during thick and thin (and those who didn't), now is a great time to do a portfolio check, given where we are in the economic cycle, and the excellent gains which investors have reaped over this incredible bull market - the longest on record.

The first thing many investors ought to do is to check on the balance of risk in their portfolios. Specifically, what is the percentage of stocks/bonds/cash you are holding in each portfolio (registered and non-registered), and how does this compare to your desired allocation percentages?

For those who are more risk averse, or more reliant on income rather than capital gains, opting for a lower risk portfolio which is heavier in bonds and cash, and lighter on growth equities, may be prudent.

For those who have seen equities grow to a significantly larger percentage of one's holdings than risk tolerance would otherwise warrant, consider trimming equities and reinvesting in bonds and cash, in preparation for the bad times (which will come, albeit who really knows when).

For younger investors with a longer time horizon, consider if the current investment mix your portfolio has taken on is commensurate to your long term investing objectives, keeping risk and reward in mind.

Invest wisely, my friends.