No. of Recommendations: 0
I'm in a similar situation, being too heavy in stocks for the long term. However, I believe interest rates will rise in 2004 and 2005. At the same time I expect stock prices to rise also.

I'm going to hold my stocks for the most part but rebalance about 5% of the portfolio each quarter in 2004. This will include taking some profits on rising stocks but not liquidating the whole position so long as I feel the stock has further to run.

I've been dealing with the interest rate risk issue for the past year by buying individual bonds in the secondary market with 1 to 2 years to maturity. I've had some good yields in GMAC notes and bonds for example. You could also look at short term corporate bond mutual funds for now and move the money to intermediate term funds when you feel most of the interest rate rise is over.

Print the post  


The Retirement Investing Board
This is the board for all discussions related to Investing for and during retirement. To keep the board relevant and Foolish to everyone, please avoid making any posts pertaining to political partisanship. Fool on and Retire on!
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.