Large Caps have dominated the gains in the past 2 years and investors need to rebalance their portfolios, said Ric Edelman, CEO of Edelman Financial Services. Edelman added that interest rate and oil uncertainty will make the coming year a volatile one for stocks, so its best to maintain a diversified portfolio. He said he prefers index funds to active managers which failed again to beat their benchmarks in 2014. Meanwhile, Edelman advises investors to keep short durations on their bond portfolios and not to stretch for yield. Finally, Edelman said gold should be 3-5% of an investor’s portfolio.
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