During the past two weeks, we’ve taken you through Part I and Part II of our four-part series on getting your 2011 financial house in order. Part I was all about conducting an inventory of your assets and all of your accounts -- taxable accounts, retirement accounts, insurance and annuities, etc. Part II was about reviewing where, precisely, those assets are invested, including knowing specifically which stocks, bonds, exchange-traded funds (ETFs), mutual funds, variable annuities, etc., you currently own.

If you haven’t completed Parts I and II of your personal financial inventory, then be sure to do so soon. That’s because today, we are going to move on to Part III in our series: Reallocating Your Assets.

Now, I must admit that Part III in this series is perhaps the most difficult portion of our program. That’s because you need to make the key decisions necessary to move your money from underperforming investment vehicles into those that you think will give you the best chance of success going forward. Yes, I realize this is no easy task. However, with a little help from us, we think we can put you on the right track.

Right now, clients of my Fabian Wealth Strategies investment firm are taking advantage of several market trends. I think you can use these trends as a general guideline with which to reposition your portfolio for the year ahead. Let’s take a brief look at each now.

Rising interest rates. One of the most important investment trends carried over from 2010 is the rise in interest rates. Take a look at the chart below of the yield on the 30-Year Treasury Bond. As you can see, long-term interest rates definitely are on the move. I suspect that the massive amounts of government borrowing, along with a stronger economy, is going to keep sending rates higher in 2011. This climate is not good for bondholders and, as such, you may want to consider reallocating some of your portfolio away from bonds and into equities.

Emerging markets. One of the fastest-growing segments of the equity market is emerging market ETFs. Many of these funds had tremendous gains in 2010, and I am anticipating a continuation of that strength in 2011. Here we are talking about emerging market nations like Brazil, India, South Korea and Taiwan. These all represent great examples of economies that are performing well and growing robustly, and stock markets that reflect robust economic growth. China is also an emerging market, but the Asian powerhouse also faces big challenges in 2011. China is one emerging market to be leery of in 2011.

Domestic equities and dividend-paying equities. The U.S. economy is poised to be the strongest market among the developed countries. Recent developments in tax policy, strong corporate earnings, the return of consumer spending, and even a bit of improvement in employment and in housing are some of the factors that have me very optimistic about the economy and the stock market in 2011. Sure, there are liable to be some periods of consolidation and selling in U.S. equities, but those pullbacks just represent a good opportunity to get your money reallocated to what I think will be a strong equity market in 2011. That means both broad-based domestic equity funds, as well as domestic dividend-paying equity funds, offer great choices for your portfolio.

Now, I recently conducted a teleseminar where we dug deep into the details of many of these investment themes. In that one-hour call, I gave listeners some ideas as to which investment vehicles I thought represented the best ways to profit in the year ahead.

If you’d like to hear an audio replay of this event, all you have to do is register today.

NOTE: Fabian Wealth Strategies is a SEC registered investment adviser, and is not affiliated with Eagle Publishing.