Strategies
What is Rebalancing?
Adjusting your portfolio back to your target allocation
Full Explanation
Over time, winning investments grow to dominate your portfolio. Rebalancing means selling some winners and buying more of the underperformers to get back to your original target mix. It forces you to sell high and buy low automatically.
Real-World Example
Target: 70% stocks, 30% bonds. Stocks rally → now 85/15. Rebalance by selling stocks and buying bonds.
Pro Tip
Rebalance once or twice a year, not every week.
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