Did you lock that mortgage rate in? Did you move from stocks to bonds?

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Published by Jason Comes, Wealth Advisor

Most voters were caught off-guard last month when President Elect Donald Trump won the election. And yes, many Wall Street firms were wrong about their stock market predictions if Trump won as well.

After the initial election night scare, all of the major stock indices have gone up since the election while many of the bond indices have gone down, with some down especially hard. The most important thing to remember about investing in bonds is that interest rates and bond prices are inversely correlated, as interest rates rise prices will fall. So where did the election leave you?

Chances are if you were in the market to buy a home or long on bonds, the market since the election has not been kind to you. With average 30-year-mortgage-rates up from 3.54% to 4.13% (as of Dec 8) according to Freddie Mac. Bond investors were burned as well as the Barclays U.S. Aggregate Bond Index lost 2.62% from Nov. 8 – Dec 2. Longer term bonds were down as much as 8%.

Major changes in macroeconomic trends or geopolitical uncertainty can cause investors to make impulse decisions. However the uncertain nature of the stock market makes trying to the time the market nearly impossible. I would recommend that you review your portfolio for a rebalance once or twice a year. Let us help in giving you a second opinion in these most uncertain times.

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