Rebalance your portfolio regularly to maintain desired allocations from "summary" of John Bogle on Investing by John C. Bogle
To follow the principle of maintaining your desired allocations, you must regularly rebalance your investment portfolio. This means periodically adjusting your investments to ensure they align with your original plan. If one investment has grown significantly, it may now make up a larger portion of your portfolio than intended. On the other hand, if another investment has performed poorly, it may now represent a smaller share of your portfolio. By rebalancing, you bring your portfolio back in line with your target allocations. Rebalancing is crucial because it helps manage risk. When a particular investment grows too large within your portfolio, you become more exposed to the risks associated with that investment. By rebalancing, you spread your risk more evenly across your investments. Th...
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