3. Consider reallocating to small company and foreign stocks. With the runup in U.S. large company stocks, your portfolio likely has too much exposure there and too little exposure to small company and foreign stocks.
It may be time to consider reallocating some of your U.S. equity exposure. Why? Smaller U.S. companies don't face the same currency headwinds that have negatively impacted large U.S. multinational companies, such as Intel, IBM, McDonalds, Fedex, etc.
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Instead, small companies do most of their business in the U.S. in dollars. Also, large U.S. companies (think S&P 500) have dominated in performance, while small- and mid-cap stocks have lagged recently.
You may also want to consider increasing your exposure to foreign stocks. This may seem counterintuitive in the current environment of a strong and rising U.S. dollar, but there are a few things working in your favor. The first is the steep decline in the euro and yen. Weaker currencies have made European and Japanese goods and services much more competitive as compared to U.S. companies'.