As the "Fed" (in the USA) is getting ready to raise the federal funds rate, is it a good idea (or is it even possible) to try to adjust my 401k portfolio for better returns? I'm speaking in general terms--assume I already have a fairly aggressive mix of investments (more stocks and "growth" type balance, fewer bonds), and retirement is still 15+ years in the future. I work for a typical large corporate employer that provides a fairly limited set of 401k investment options (I've seen this as pretty typical for corporate 401k's). Generally I have options that run the gamut from conservative to risky, but limited choices in each category:
- Large Cap Growth
- Large Cap Income
- S&P 500 and Wilshire 4500 Index funds
- A couple Foreign Funds
- Small Cap Growth
- Small Cap Income
- A balanced bond/stock investment
- A couple bond funds
- A money market fund
- Target retirement date managed funds at 5-year intervals.
I've googled a few searches, but most investing guides seem to talk about how to change your mix of stocks (more raw material stocks, or invest in companies that profit from loans, such as banks, and stay away from treasury and mortgage bonds), which generally is not an option for 401ks. Are there any strategies for those of us with more limited options?