Asset allocation should be regularly reviewed and adjusted as needed from "summary" of All About Asset Allocation, Second Edition by Richard Ferri
Asset allocation should be regularly reviewed and adjusted as needed. This crucial concept is at the core of successful investing. The reason for this is simple: financial markets are constantly changing. What may have been an optimal asset allocation at one point in time may no longer be suitable in the future. Ignoring the need to review and adjust your asset allocation can have serious consequences for your investment portfolio. Regularly reviewing your asset allocation ensures that your investment strategy remains in line with your financial goals and risk tolerance. By evaluating your current asset mix and comparing it to your target allocation, you can identify any deviations that may have occurred due to market movements or changes in your personal circumstances. Adjusting your asset allocation as needed allows you to realign your portfolio with your long-term objectives, helping you stay on track towards achieving you...
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