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Rebalance your portfolio from "summary" of The Little Book of Common Sense Investing by John C. Bogle
The concept of rebalancing your portfolio is a critical component of successful investing. In essence, it involves periodically adjusting the allocation of your assets to ensure that they remain in line with your investment objectives and risk tolerance. By rebalancing, you bring your portfolio back to its target asset allocation, which helps to manage risk and optimize returns over the long term. Rebalancing is necessary because asset classes can perform differently over time, leading to a shift in the original asset allocation of your portfolio. For example, if stocks have a strong performance relative to bonds, your portfolio may become more heavily weighted towards stocks than you initially intended. This can expose you to greater risk than you are comfortable with. By rebalan...
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