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Rebalance portfolio regularly from "summary" of A Random Walk Down Wall Street: The Time-Tested Strategy for Successful Investing (Twelfth Edition) by Burton G. Malkiel
Regularly rebalancing your portfolio is crucial to maintain your desired asset allocation over time. As market conditions fluctuate, the value of your investments will change accordingly. This can lead to a situation where certain asset classes become over or underrepresented in your portfolio. Rebalancing ensures that you realign your investments to match your original asset allocation targets. By rebalancing your portfolio regularly, you are effectively selling high and buying low. This disciplined approach helps you to capitalize on market fluctuations and avoid the pitfalls of emotional decision-making. It forces you to stick to your long-term investment strategy, rather than succumbing to short-term market trends. Rebalancing also helps to manage risk in your portfolio. By diversifying your investments across different asset classes, you can spread...
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