Use select charts from the Guide to the Markets to engage in portfolio discussions.
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Staying balanced in volatile markets
Building and maintaining an appropriate asset allocation can help increase returns and reduce volatility over time. Market volatility can be an opportunity to rebalance back to an allocation that reflects your investment and income objectives, time horizon and tolerance for risk.
A diversified portfolio can help increase income
- Eight years ago, the annual income from a $100,000 6-month CD was roughly $5,000. Today, it is a fraction of that, and well below the rate of inflation when expressed in percentage terms.
- Although the dividend yield of the S&P 500 is hovering right around the yield of 10-year Treasuries, yields of non-U.S. equities are typically higher than those of U.S. stocks, suggesting that attractive income opportunities may exist abroad.
- Parking savings in cash might seem like the safe choice at times, but it may also require that investors take on additional risk later in an effort to make up lost ground.