PLAN TO MAKE SOME INVESTING RESOLUTIONS

This "Financial Focus" column is prepared by Edward Jones Investments headquartered in St. Louis. Jones has branches throughout the nation, including Cape Girardeau and Jackson.

This is the time of year when magazines and newspapers publish year-end reviews highlighting major news stories of the past 12 months. Destined for this year's list is the midsummer U.S. stock market correction.

Reading about how Wall Street fared in 1998 should prompt us to conduct our own financial annual review. You may know how your investments weathered the market downturns, but do you know how to prepare for whatever the new year brings to investors? Start by ringing in 1999 with the following investing resolutions:

I will look for long-term growth. Review how well your portfolio has done over the past three years. Total your portfolio, and compare it with 1995. You may be pleasantly surprised to find that you're ahead from three years ago, despite short-term market downturns.

I will check my asset allocation. Should auld investments be forgot? Not according to the experts. Your portfolio requires regular checkups to ensure it is properly balanced among equities, bonds and cash. Despite recent market corrections, consistent gains over the past several years may still have created a larger percentage of stocks in your portfolio than your original objectives called for. Check with an investment professional for your ideal percentages.

I will diversify among industries. By spreading your risk across several industries, you'll lessen the chance that a downturn in any single sector will severely impact your entire portfolio. Start with industries that are expected to post above-average growth in the next several years such as consumer staples, financial services, health care and technology. Look for great companies within each industry. If you see prices dropping, get out your shopping list and buy some bargains.

I will check out international investments. Foreign markets have not performed as well as U.S. stocks for most of the past decade. The long, dry spells are discouraging, but since it is difficult to forecast which stock classes are going to do well, diversification is key. Since foreign markets are down now, this represents a great time to add international exposure to your portfolio. Invest in broad, professionally managed global mutual funds.

I will avoid fad stocks. Be wary of over-hyped, faddish stocks such as Internet companies. Stock prices for some of these companies have ballooned to unrealistic heights that have little to do with actual sales or profits. Stick with proven companies that have thrived despite many market cycles.

I'll keep my focus, come what may. Rocky global markets could continue to buffet Wall Street. Successful long-term investing requires the ability to stay focused and exercise a mental toughness when it comes to reading headlines about the stock market. Savvy investors are prepared and poised to seize future opportunities.

Happy New Year, and may you and your investments have many happy returns!

The Southeast Missourian does not recommend that readers buy or sell stocks featured in this column, which is provided for informational purposes only.