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Aside from the relative success of BP finally (mostly) stopping the oil flow in the Gulf, there really hasn’t been a lot of game-changing news in the markets recently. Sure, we have the announcement of the BlackBerry Torch, or the acquisition of Red Back Mining by Kinross, and the decision by the Bank of Australia to hold rates steady again – but generally, August is a slow month for stock markets.
Compound the seasonal slump with the current ambivalence of sentiment and indicators about the weak recovery (double dip? decoupling? deflation or inflation?), and you can see why all the news is just a wash lately.
When there’s not much going on in the markets, when dramatic news is few and far between, what should you do with your portfolio? Many people are self-called “lazy” investors to begin with – many of you guys are probably all on vacation right now anyway.
For the keen and eager, here are a few ideas beyond merely sitting back and holding on and waiting for September:
Rebalance Your Portfolio in August
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The August slump makes it a great time to rebalance and prune your portfolio before late-summer rallies and September volatility. All indications are now showing that August is already shaping up to be a great month, with the oil price alone up $4.00 in just two days – now topping out past $82.
Take stock.
Update your portfolio and print it out. Compare it with the beginning of the year and this time last year. Make sure you’re still on track.
Factor in new information.
What have you learned about investing in the past 6 months? What have you learned about specific stocks or ETFs? How should this influence your decisions going forward? Write it down and keep track.
Revisit Your Watchlist.
What stocks should be added, and which removed, from your watchlist? Do you still feel the same way about the stocks you added previously? Check their current stats and know which are your top 2 or 3 picks based on where they’re sitting now. Know your entry points.
Financial Housekeeping.
What files and folders need to be organized? Is there something on your financial to-do list that you’ve been putting off? Get a few of these ticked off in order to help you do your finances more efficiently in the future. Call to close that account, find out what you need to open the new savings account, mail the letter, or throw out old papers.
Whenever you feel like keeping your powder dry or just holding on, make sure you’re not just sitting idle. It’s the perfect time to do more research and get your own ducks in a row, which will help you take advantage of opportunities ahead. Know your next investment move now.
How To Invest In a Deflationary Environment
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