How to rebalance your portfolio for the second half of 2024

In the second half of 2024, the stock market is expected to maintain its momentum from the first half, according to Lawrence Sprung, the founder of Mitlin Financial and author of “Financial Planning Made Personal.” This optimistic outlook is based on historical trends, the upcoming election, and the possibility of a future interest rate cut.

Sprung advises investors to review their portfolios mid-year and rebalance if necessary. He notes that financials have been performing well in a higher interest rate environment but could experience a downturn once a rate cut is initiated. On the other hand, the energy sector will be sensitive to geopolitical events, and while it’s challenging to time these events, investors can try to anticipate them.

Investors should be mindful of their allocation to avoid having a disproportionate amount of their portfolio in a specific area. The interest rate situation is crucial, as financials have been doing well due to the higher interest rate environment, but this could change if interest rates start to decrease. Energy prices, while increasing at the pump, generally support a good economic environment.

For more expert insights and the latest market action, viewers can watch the full episode of Wealth! on their platform. This post was written by Melanie Riehl, and the video transcript is available for those who prefer to read the discussion.

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