Don't Skip Your Mid-Year Investment Portfolio Checkup This Year
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You've probably heard the advice before: Check on your investment portfolio at the mid-year mark to make sure you're on track to achieve your goals. But this year, it's especially important.
Financial markets have put investors through a rollercoaster-like experience over the past year. In 2021, the stock market kept hitting record highs, and buying risky options like cryptocurrency and SPACs paid off. The outlook is a lot different today. The S&P 500, an index commonly used as a benchmark for the overall performance of the stock market, fell into a bear market in June, meaning that it fell at least 20% from the most recent peak. Pandemic stock winners like Peloton and Zoom have watched their prices tumble more than 70% and 40% respectively this year, and 10 out of the 11 S&P 500 sectors have tanked in 2022.
For new investors and seasoned pros alike, the volatility can be scary. Luckily, experts say that revisiting your portfolio regularly — like once a quarter or every six months — can help immensely with setting you up for success in the long term. Now that we've reached the halfway point of 2022, it's time to actually take that step.
"It's been a year like we’re not familiar with in recent history,” says Lauren Wybar, senior wealth advisor at Vanguard. "It’s unusual compared to what we’re used to."
Here's what you need to pay attention to when doing a mid-year portfolio checkup.
