Ayako Yoshioka, CFA Senior Portfolio Manager at Wealth Enhancement Group was featured in The Wall Street Journal article “20 Ideas for Adjusting Your Stock and Bond Portfolio”.
“The case for adding to the percentage of stocks in a portfolio: If you have excess cash sitting on the sidelines or your portfolio has benefited from this year’s rise in commodities, it may be prudent to scale back the commodity exposure and use the proceeds to add to high-quality, dividend-paying stocks with stable earnings and solid balance sheets. Despite a cautious near-term outlook, market declines provide investors with more profitable opportunities for the long term.
The case for reducing the percentage of stocks in the portfolio: Given the declines in the equity markets, this may be a good time to take advantage of tax-loss harvesting. Investors can lower their cost basis if they reinvest any proceeds back into stocks, or they can use the proceeds to diversify into other areas. Examples may include fixed income now that yields are close to 3% and alternative investments such as structured notes or private debt.
In both cases, incremental shifts of 5% to 10% of the overall portfolio allocation should be considered as well as the investor’s overall risk tolerance.”
Read the full article written by Christina Lourosa.
