The Markets Have Been on a Roll. Is It Time to Hedge Your Bets?

Stock, bond, and cash allocation documents arranged for a portfolio risk review after a strong market rally
Hedging your bets can mean rebalancing stocks, bonds, and cash instead of trying to time the market

After several strong years for stocks, hedging your bets does not necessarily mean selling equities or attempting to call the top. For a long-term investor, it usually means checking whether your mix of stocks, bonds, and cash still matches your goals, then rebalancing if the rally has left you taking more risk than you intended.

That distinction matters in 2026. The S&P 500 entered late August with another double-digit year-to-date gain after strong returns in 2023, 2024, and 2025, putting it in position for a rare fourth consecutive double-digit year. At the same time, stock valuations remain elevated by several measures, AI spending is enormous, long-term bond yields have climbed, and investors are once again asking whether staying invested has become reckless—or whether trying to time an exit creates an even bigger problem.

Is It Time to Hedge After the Stock Market’s Long Rally?

It may be time to review your risk, but a strong market by itself is not a reason to abandon stocks. A better response is to compare your current allocation with the one your financial plan was designed to hold. Dive in the full article... 

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