Rebalancing Opportunities as Stocks Plummet, Treasuries Rise

There are a number of reasons why one should consider rebalancing before month-end:

• A 10-year Treasury note purchased today would have a yield of just over 2%. One could likely do much better cashing in those gains for dividend paying stocks with a higher yield and a record of rising dividends.
• Stocks are getting cheaper, even though 72% of all S&P companies have beaten earnings expectations for the current quarter.
• There is still no evidence that the United States is heading for a recession, although growth is certainly lower than once believed.

Advisors get paid for thinking rationally during difficult periods. Rebalancing now will likely reap big rewards for clients in the coming months.