It’s Always Something

Flexibility and balance are key in uncertain times. [Morningstar](?utm_source=eloqua&utm_medium=email&utm_campaign=newsletter_improvingfinances&utm_content=34374&elqTrackId=3c996b658ec344cdb58aa383001d9c99&elq=c969e0724e2043bd8ef234192a51156b&elqaid=34374&elqat=1&elqCampaignId=16053) [Improving Your Finances] Improving Your Finances with [Christine Benz]( [Christine Benz] If you’re of a certain vintage, you’ll remember that was one of the signature lines of Saturday Night Live character Roseanne Roseannadanna, played by the inimitable Gilda Radner. After an aimless editorial rant, she’d conclude, “It just goes to show…it’s always something!” I was reminded of that tagline this morning as I surveyed the bright red stock-market activity on my computer screen. The threat of a Russian invasion of Ukraine was roiling stock today. But prior to that, the major pressure on stocks was the expectation of higher interest rates, borne of a red-hot economy and a high inflation number in January. For me, that’s a reminder that worrying about any specific turn of events--and the implications for my money--usually isn’t productive. “It’s always something.” Instead, it’s worthwhile to build flexibility and balance into my plan and my portfolio so that they can withstand any number of scenarios, including worries I’ve never pondered. Flexibility and balance are how I would suggest investors approach the prospect of [rising interest rates](. Purging your portfolio of bonds and rate-sensitive stocks isn’t the answer. After all, stocks and bonds have already priced in a robust series of rate increases, and the Fed’s upcoming actions could realistically tamp down inflation. In that situation, the worst losses for rate-sensitive securities could be behind us. At the same time, it seems reasonable to ensure sure your portfolio has at least some exposure to the categories that have historically performed well in periods of rising yields. If you determine your portfolio is light on value exposure, [we’ve got you covered](. And if your portfolio has experienced some losses this year, it can also be empowering to channel your energies in a productive way. Susan Dziubinski and I [recently discussed some ideas on that front]( including tax-loss selling, IRA conversions, and making IRA contributions if you haven’t done so already. I also loved [Amy Arnott’s discussion]( of how to create a net worth statement. That might seem too basic for seasoned investors, but I believe that it can be a worthwhile and anchoring exercise. Chances are you’re doing better than it feels right now. With warm regards, Christine Benz​​​​ [Is Your Portfolio Ready for Rising Interest Rates?]( With rates on the move, here's how to assess your stock, bond, and cash holdings. [Read More]( Share: [facebook]( [twitter]( [linkedin]( ADVERTISEMENT [media]( [media] [Should You Keep Foreign Stocks Out of Your IRA?]( Tax considerations suggest yes, but other factors may argue against it. [Read More]( [What to Expect From Stocks and Bonds]( The pros agree: Don't expect buoyant returns from U.S. stocks going forward. [Read More]( [Jill Schlesinger: 'What Are You Going to Do With Your Life?']( The popular personal finance expert and author discusses the importance of planning for the worst, smart Social Security-claiming strategies, and why employees should be proactive in the current labor market. [Read More]( [3 Ways to Take Control in a Volatile Stock Market]( Here are some practical steps for steering your portfolio through uncertain times. [Read More]( [The Best Investments for Taxable Accounts]( With some care, investors can build a tax-efficient portfolio that's diversified, too. [Read More]( Morningstar on Google News Need a fast and easy way to stay on top of current events? Follow us on Google News to stay ahead of relevant news and our latest financial insights today. [Subscribe Now.]( Stay connected: [twitter]( [facebook]( [linkedin]( [instagram]( [YouTube]( [Apple News]( [View online]( | [See all newsletters]( | [Share your feedback]( [Unsubscribe]( from this newsletter. Or update your [email preferences](. © 2022 Morningstar, Inc. All Rights Reserved. 22 W. Washington St. Chicago, IL 60602