I love the midpoint of the year. The summer officially begins, I celebrate my girls' birthdays and we still have plenty of time to follow through with those resolutions we made at the beginning of the year.

So let's all make a commitment to start getting to work on time, stop drinking in the middle of the week and make more time to analyze our investment portfolios.

Now is a great time for a midyear portfolio review. But remember, we don't live in a stagnant world. If you only visit your portfolio two or three times a year, you'll have missed the boat 10 times over.

That's because each month brings new quandaries. At this point we're dealing with a precarious housing market, rising interest rates and that nut in North Korea. And while consumer spending hasn't really been hurt yet from the oil and interest rate run-ups, the economy clearly has a few kinks to work through in the upcoming months.

So make a vow to look at your portfolio statements at least once a month. While you don't want to do any panic buying or selling, you do need to know where you stand.

Sell the Old Regime

The first part of your portfolio review should be to check your asset allocation. It's very possible that it fell out of whack. A lot of investors who have been playing the energy, emerging-markets and commodities game over the last few months have lost the diversification in their portfolios, says Richard Coppa, president and founder of Wealth Health, a financial planning firm in Roseland, N.J.

So it may be time to make some adjustments. You may have many winners -- which is great -- but as their prices rise, a greater percentage of your total assets will be tied to those stocks, making you less diversified. Take some money off the table while your winners are still winning.

Then go through your losers. There's no need to wait until the end of the year for tax-loss selling. Get rid of the stuff that's going nowhere. Remember, your gains are offset against your losses for tax purposes.

Find New Leaders

You shouldn't be surprised that the sectors that led the recent bull market -- like energy and materials -- are probably not going to lead the next one. Start investigating in the new regime, which will mainly be health care, technology and the industrials, says Brad Sorenson, the head sector analyst at Schwab's Center for Investment Research.

The health care stocks have clearly been beaten down in the past, but the aging population isn't going anywhere and long-promised innovations are finally coming to fruition from the biotech companies, notes Sorenson, who's looking for the medical equipment and biotech stocks to lead the sector.

The tech stocks had a rough second quarter, thanks to the decline of the emerging markets. Still, many pros see good growth, fundamentals and valuations in the tech sector. And since their stock prices really haven't kept up with their growth, tech just may resurface as the leader of the next bull market.

And finally, the industrials could prove to be good global growth plays in the coming months, particularly as China gears up for the 2008 Olympics and U.S. companies pitch in. So look at the machinery stocks and their supporting sector.

Remember, if you're not into stock picking, you can always buy the sector ETF to get simple, stress-free portfolio exposure. Just be sure to read the prospectus and make sure you understand what you're investing in (just because its called a health care ETF doesn't mean all the names are health care stocks). And try to go with the ETFs with the lowest fees.

Wait for the Bull

Granted, given the continued frenzy on trying to guess the Fed's moves, it's going to be a rocky summer. We're probably not going to see the next market leaders until September at the earliest.

But while you're hanging on, review your retirement contributions. Make sure they're being fully funded and you're taking advantage of your employer's 401(k) match. Then pay attention to your adjustable-rate mortgage. Next year, many of the low-rate ARMs will start to adjust to the current market rates. That could mean big increases in your monthly mortgage payment. You may want to consider refinancing before the year is over.

So commit to making some positive changes over the next six months. Then your employer, your liver and your portfolio will all properly thank you during this upcoming holiday season.
Tracy Byrnes is an award-winning writer specializing in tax and accounting issues. As a freelancer, she has written columns for wsj.com and the New York Post and her work has appeared in SmartMoney and on CBS MarketWatch. Prior to freelancing, she spent four years as a senior writer for TheStreet.com. Before that, she was an accountant with Ernst & Young. She has a B.A. in English and economics from Lehigh University and an M.B.A. in accounting from Rutgers University. Byrnes appreciates your feedback; click here to send her an email.