Make active decisions about the appropriate mix of asset classes based on your assessment of the economy, and your expectations around risk and return.
Investors who focus on “fundamentals," such as a company's earnings, are better positioned to make smart investment decisions, as are those who are mindful of both the obvious and hidden risks in each asset class.
You could sell investments at a loss to offset gains, time your sales to lower tax pressure and make sure your assets are located in the appropriate accounts (e.g., keeping higher-growth assets in a tax-deferred account).
The above-average returns we've seen since 2009 are unlikely to reoccur, especially in fixed income. Don't solely focus on yield — aim for a well-balanced, broadly diversified group of investments.
Fixed income investors should combine both long- and short-term bonds, and perhaps also further diversify their portfolios with alternative asset classes.
This document is confidential and may not be copied, reproduced or distributed, in whole or in part, to others at any time without the prior written consent of The Bank of New York Mellon Corporation, its subsidiaries and affiliates (collectively, “BNY Mellon"). The material contained herein is not intended for distribution to, or to be used by, any person or entity in any jurisdiction or country in which distribution or use would be contrary to law or regulation. Except as otherwise permitted herein, distribution of this material to any person other than the person to whom this was originally delivered and to such person's advisors is unauthorized and any reproduction, in whole or in part, or the divulgence of its contents, without the prior consent of BNY Mellon in each such instance is prohibited.This material is provided for illustrative/educational purposes only. This material is not intended to constitute legal, tax, investment or financial advice. Effort has been made to ensure that the material presented herein is accurate at the time of publication. However, this material is not intended to be a full and exhaustive explanation of the law in any area or of all of the tax, investment or financial options available. The information discussed herein may not be applicable to or appropriate for every investor and should be used only after consultation with professionals who have reviewed your specific situation. BNY Mellon Wealth Management, Advisory Services, Inc. is registered as a portfolio manager and exempt market dealer in each province of Canada, and is registered as an investment fund manager in Ontario, Quebec, and Newfoundland & Labrador. Its principal regulator is the Ontario Securities Commission and is subject to Canadian and provincial laws.Trademarks and logos belong to their respective owners. BNY Mellon Wealth Management conducts business through various operating subsidiaries of The Bank of New York Mellon Corporation.©2016 The Bank of New York Mellon Corporation. All rights reserved.