Rebalance your portfolio regularly from "summary" of All About Index Funds by Richard A. Ferri
Regularly rebalancing your portfolio is crucial to maintain your desired asset allocation and risk level. Asset classes don't move in sync with each other, causing your original mix of stocks, bonds, and cash to drift over time. This drift can lead to unintended consequences and may expose you to more risk than you are comfortable with. When you rebalance your portfolio, you are essentially selling assets that have performed well and buying assets that have performed poorly. This may seem counterintuitive, but it is a disciplined approach to buying low and selling high. It helps you stay true to your long-term investment plan and prevents you from making emotional decisions ...Similar Posts
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