Rebalance your portfolio as needed from "summary" of Investing for Dummies by Eric Kevin Tyson
When it comes to managing your investments, it's important to remember that the financial markets are constantly changing. What was once a winning investment may not continue to perform as well in the future. That's why it's crucial to regularly review your portfolio and make adjustments as needed. Rebalancing your portfolio involves selling off investments that have grown significantly in value and buying more of those that have underperformed. This helps you maintain a balanced mix of assets that aligns with your investment goals and risk tolerance. For example, let's say you originally invested 60% of your portfolio in stocks and 40% in bonds. Over time, the stock market performs exceptionally well, causing your stock holdi...
Similar Posts
Seek happiness in nonmaterial things
The idea of seeking happiness in nonmaterial things is a key concept in understanding the psychology of money. While money can ...
Performance measurement is essential to evaluate managers
Performance measurement plays a crucial role in evaluating the effectiveness of managers within institutional investment manage...
Let the magic formula work its magic over time
The magic formula is a simple, yet powerful concept that can help investors achieve above-average returns in the stock market. ...
Pay attention to market trends
Understanding market trends is a key aspect of successful investing. By paying attention to market trends, investors can identi...
Bear markets are a natural part of the economic cycle
Bear markets are a natural part of the economic cycle. They are periods of time when stock prices fall, investor sentiment sour...
Islamic finance offers an alternative approach to banking and investing
Islamic finance offers a unique perspective on banking and investing, rooted in the principles of Islamic law, or Sharia. This ...
Financial education is vital
Financial education is vital because it helps individuals make informed decisions about their money. Without a proper understan...
Be a defensive investor rather than an aggressive one
As an investor, it is important to adopt a defensive mindset rather than an aggressive one. The defensive investor focuses on m...
Consider the overall economic environment when investing
When making investment decisions, it is imperative to take into account the broader economic landscape in which one is operatin...
Take action towards financial independence and freedom
To achieve financial independence and freedom, one must take intentional and strategic actions. This involves making conscious ...