So far in 2022, we’ve seen a ton of action in the market. From the energy sector to the real estate investment trust (REIT) world, things have been up, down, and generally just downright difficult to anticipate.

Even in normal years, July makes me stop and assess our economic climate since it’s halfway through the year. The second quarter just ended last Thursday, and we’re about to be bombarded with new earnings reports and the subsequent market reactions as we move through the first part of this month.

Before we get into all that though, let’s stop, take a breath, and get a good understanding of just where we are and how we’re going to plan for the rest of the year.

Many of us in the U.S. have the day off to spend with friends and family. We have a long weekend to relax, play with the kids, and enjoy the things we work so hard for.

This, I believe, is the best part of July 4^th: the freedom to spend time with those we love. And for that, I want to offer an enormous thank you to everyone who has made this holiday possible in so many different ways.

Of course, part of this whole “freedom” thing is accepting responsibility and reality. So we have to acknowledge that Tuesday’s opening bell will happen soon enough…

So before we go back out there to truly tackle the second half of this year (since we have no other choice), I just wanted to remind us of a few ways to strengthen our portfolios over these summer months – or at all.

We can all benefit by taking a few quick minutes to make sure these three bases are covered…

1. Diversify

I know I say this all the time. But in these crazy markets (or any other kind of market, really), it’s essential to have a diverse portfolio.

We’re heading into the unknowns of more interest rate hikes. And exposure to multiple markets will keep your portfolio from feeling the squeeze in a single sector.

2. Personalize

Now is a great time to assess your financial goals. If you’re planning that incredible summer vacation or saving for your dream summer home, your portfolio strategy should reflect that.

Take into account your risk tolerance, timeline, and liquidity needs. Remember, your money should be working for you! Even when you’re sleeping.

That’s why dividend stocks can be key to a healthy portfolio… one of the many reasons why I like REITs.

3. Optimize

Just because April is behind us doesn’t mean we should overlook tax implications. A sound tax optimization plan could spell 1% higher annual returns for your portfolio – a pretty decent addition if you’re looking at those lux summer vacations.

A few smart options to optimize taxes would be avoiding mutual funds, implementing tax-loss harvesting, and choosing tax-effective investment vehicles.

So there you go! I hope everyone has a wonderful weekend, and let’s get ready to crush it in this next half of the year.

More By This Author:

Welcome to Reality – Which Way Will It Go?
What Did You Say, Mr. Powell?
Everyone’s Dependent on China, and That’s a Problem