More than one-third of Americans—specifically 37%—plan to make a change to their portfolio or investment strategy this year, according to the newly released New York Life Wealth Watch 2026 Midyear Outlook.

The finding underscores a broader climate of financial anxiety as investors navigate a complex economic backdrop. Inflation, shifting interest rates, ongoing market volatility, the rapid rise of generative artificial intelligence, and a relentless cycle of unsettling news headlines have combined to leave many individuals feeling that they must take action with their money. While this instinct to respond to a changing world is understandable, financial experts caution that acting without a detailed financial plan can prove costly, and a portfolio is only one component of a comprehensive financial strategy.

Modifying an investment portfolio can be one of the smartest moves an individual makes, or conversely, one of the most damaging. According to the report, the deciding factor is rarely the market itself. Instead, the outcome depends heavily on whether the adjustment reflects a well-considered long-term strategy or serves as a knee-jerk reaction to short-term economic noise. Before investors rush to rebalance or reallocate their assets, financial professionals advise taking a step back to understand the underlying drivers of their financial decisions and to tune out external distractions.

Know What Is Driving the Urge to Act

The process begins by identifying the exact nature of the pressure an investor feels. The primary trigger for a portfolio change does not always align with the true source of financial stress. While media headlines and market fluctuations often generate the immediate urge to act, survey data from the report reveals that everyday cost-of-living pressures weigh much more heavily on the minds of most investors.

Higher day-to-day living costs topped the list of financial concerns, cited by 61% of respondents. In stark contrast, market volatility was named as a top concern by just 15% of those surveyed. This disparity highlights a fundamental disconnect: many people feel the economic squeeze most directly through essential expenses such as groceries, housing, and gas, even if dramatic market news is what ultimately captures their attention.

Recognizing this distinction is crucial for sound financial health. Pressure on a monthly budget typically calls for a reassessment of spending habits, cash flow management, or savings rates, rather than a drastic overhaul of long-term investments. Conflating everyday budgetary stress with portfolio risk can lead to misguided changes that fail to address the root cause of financial anxiety.

Avoiding Common Mistakes in Uncertain Times

When investors do decide to act, their behavior tends to cluster around two distinct pitfalls, both of which can undermine financial security.

The first major misstep is overreacting to current conditions. This often takes the form of chasing last year’s top-performing assets, attempting to time the unpredictable movements of the market, or making investment decisions based on whatever trend happens to be popular at the moment. In the current technological landscape, that tendency frequently manifests as turning to artificial intelligence tools for financial answers. According to the survey, 13% of people research financial topics using generative AI. While these digital tools can offer valuable educational insights, they generally lack a holistic view of an individual’s complete financial picture, including personal goals, tax situations, and strict timelines.

The second mistake runs in the opposite direction: total inaction. Approximately 29% of respondents reported taking no action whatsoever in response to the various factors affecting their personal finances.

Although market paralysis and outright panic look entirely different on the surface, they frequently share a common root cause—the absence of a cohesive, documented financial strategy. Without a clear plan to guide decisions, investors are far more likely to freeze or overcompensate when faced with economic uncertainty.

Evaluating Changes Through a Strategic Lens

Whether individuals manage their own investments or partner with a professional financial adviser, financial experts recommend testing every proposed portfolio change against a series of critical questions before executing a trade.

The first consideration is whether the change genuinely serves long-term goals. Every portfolio adjustment should ladder up to a specific, defined objective, such as a targeted retirement date, purchasing a home, or funding a child’s education. If an investor cannot clearly articulate how a specific trade or reallocation advances a primary goal, that inability should be treated as a warning sign.

The second consideration involves risk tolerance. Adjusting asset allocation—the precise mix of stocks, bonds, and other holdings—is the adjustment that most directly reflects an individual’s comfort level with risk. Any shift in this mix should be dictated by how much market volatility an investor can realistically absorb over time, rather than how they happen to feel during a particularly volatile week in the markets.

Third, investors must carefully evaluate the tax consequences of their actions. Taxes represent an often-overlooked cost of active trading. Selling an appreciated asset, shifting money between different account types, or realizing capital gains can trigger a substantial tax bill that entirely erases the projected benefit of the portfolio change. Experts advise modeling the after-tax outcome of any transaction before moving forward.

Fourth, individuals must assess whether their broader plan remains diversified and properly protected. A resilient financial strategy involves far more than the specific assets held in a brokerage account. Insurance policies and guaranteed income sources belong in the exact same conversation as investments. Proper diversification and adequate protection are what prevent a single bad year in the financial markets from completely derailing a long-term plan.

Finally, any proposed change must hold up against an individual’s long-term retirement income needs. Financial decisions made today should be judged against the income required to sustain a lifestyle for decades into the future, rather than measured solely against the current year’s market returns.

The Value of Professional Guidance

The data from the Wealth Watch report underscores a clear trend regarding investor confidence: the individuals who feel most secure about their financial standing are generally those who do not navigate the complexities alone.

Nearly one-third of American adults, or 30%, report that they do not have a formal financial strategy. Among individuals who work with a professional financial adviser, however, that figure drops dramatically to just 5%.

This gap in planning translates directly into measurable differences in financial confidence. Among those who work with an adviser, 44% report feeling very confident that their retirement savings will last for the remainder of their lives, compared to only 24% of adults overall. Across nearly every measure of financial preparedness tracked by the survey—ranging from emergency savings cushions and debt management to overall retirement readiness—advised individuals run roughly one and a half times ahead of the general population.

Having an adviser does not mean relinquishing control or remaining passive. Interestingly, survey data shows that people who work with a financial adviser are actually more likely to plan portfolio changes during the year, with 44% intending to make adjustments compared to 37% of Americans overall. This dynamic highlights the core value of professional guidance: an adviser provides a structured framework for determining when a change is genuinely warranted and how to execute it safely based on a comprehensive view of an individual’s entire financial life.

Ultimately, deciding whether to modify a portfolio requires careful introspection. If a planned adjustment genuinely reflects long-term goals, an appropriate timeline, and a realistic tolerance for risk, it may well be the right course of action. However, if the urge to change stems primarily from alarming headlines, trending apps, or short-term anxiety, investors would be wise to pause, step back, and consult with a trusted professional before making a move.