Investors should make it a priority to rebalance their portfolios following last year’s strong stock market performance, said Jonathan Clements, author of ‘Money Guide 2015‘. Clements added that most active fund managers failed to beat their benchmarks last year, so investors may want to switch to index funds in 2015. He said interest rates can’t go much lower so investors may want to keep the duration of their funds short. Meanwhile, Clements said mortgage rates are still below historical levels and home prices are well below their 2006 peak, so it may be a good year to buy a house.

Jonathan Clements: Rebalance Stocks and Keep Bonds Short

Jonathan Clements: Rebalance Stocks and Keep Bonds Short