Morsa Pictures | E+ | Getty PicturesMany traders fear a recession is coming amid rising rates of interest, excessive inflation and inventory market volatility. However the majority have not modified their portfolios, in accordance with analysis from Constancy Investments.Solely 5% of 401(okay) and 403(b) traders shifted asset allocations throughout the second quarter of 2022, the report discovered, barely decrease than the 5.3% who made modifications the quarter prior. Among the many savers who made changes, the vast majority of traders solely made one, with the highest change involving shifts to extra conservative property, the findings present.Extra from Private Finance:Social Safety could possibly be a 'front-burner subject' in mid-termsPupil mortgage forgiveness functions might open quicklyWhy staff have the 'higher hand' within the job market proper nowIt is not stunning, since many 401(okay) traders use so-called target-date funds, a "set it and overlook it" possibility that robotically and progressively shifts the investor's allocation to extra conservative property as they strategy retirement. These modifications aren't a part of the 5% Constancy famous, for the reason that fund makes the changes.Certainly, 95% of 401(okay) plans provided goal date funds in 2021, in accordance with Vanguard, and 81% of contributors used these funds.Nonetheless, if you need your portfolio to mirror issues across the financial system, listed here are some choices to think about.Think about a shift to commoditiesWhereas there could also be restricted choices to hedge inflation in a 401(okay) plan, traders might have extra selections in different accounts, mentioned licensed monetary planner Invoice Brancaccio, co-owner of Rightirement Wealth Companions in Harrison, New York.His agency started shifting consumer portfolios final summer season, anticipating increased inflation with the potential of rising rates of interest. "It's important to make modifications earlier than the prepare leaves the station," he mentioned.If we’re going to have persistent inflation, commodities are a extremely good hedge in opposition to that.Invoice Brancaccioco-owner of Rightirement Wealth CompanionsA "broad basket of commodities," together with vitality, supplies and metals, usually 3% to 10% of the general portfolio, has been an excellent addition, he mentioned."If we'll have persistent inflation, commodities are a extremely good hedge in opposition to that," he added, noting the property might also carry out properly as rates of interest rise.Learn how to place your bond allocations Whereas many advisors constructed portfolios to resist volatility, do-it-yourself traders should still have room for enchancment, mentioned CFP Anthony Watson, founder and president of Thrive Retirement Specialists in Dearborn, Michigan. For instance, you will wish to take into account your bonds' so-called period, which measures sensitivity to rate of interest modifications. Expressed in years, period components within the coupon, time to maturity and yield paid by means of the time period."You wish to ensure that your bonds are decrease in period," as a result of when rates of interest are rising, you may reinvest the proceeds sooner to earn extra, Watson mentioned. And you may wish to be sure that there's "high-quality bond publicity," together with so-called investment-grade bonds, he mentioned, that are usually decrease threat as a result of the issuer is much less more likely to default.Whereas market rates of interest and bond costs transfer in reverse instructions — increased charges make values fall — these property nonetheless play a key function to diversify the portfolio throughout extended downturns, Brancaccio mentioned.