With the S&P 500 hovering 9% below its early January high, financial advisors are reviewing client portfolios to be sure allocations remain within corridors determined by financial plans. The Russian attack on Ukraine caused additional volatility in markets, with stocks declining sharply before rallying back to finish the week with a gain. However, despite the prominence of this event, plenty of other catalysts routinely cause markets to rally and reverse, year-in and year-out.
That’s why advisors regularly check portfolios to verify that the investment mix is aligned with client goals. For example, say the plan for a 60-year-old woman has determined that she can retire in seven years, assuming she maintains a portfolio of 60% stocks and 40% bonds, with market cap and regional assets included with those broad allocations.
