Periodically adjusting portfolio weights back to target allocation.
After a strong stock rally, portfolio drifts overweight equities — rebalancing forces sell-high, buy-low discipline. Common cadences: annually, semi-annually, or threshold-based (rebalance when allocation drifts more than 5% from target).
Periodically adjusting portfolio weights back to target allocation. After a strong stock rally, portfolio drifts overweight equities — rebalancing forces sell-high, buy-low discipline. Common cadences: annually, semi-annually, or threshold-based (rebalance when allocation drifts more than 5% from target).
In portfolio, Rebalancing is one of the building blocks investors use to compare opportunities and assess risk. Understanding it helps you read research notes, earnings reports, and market commentary without getting lost in jargon.
After a strong stock rally, portfolio drifts overweight equities — rebalancing forces sell-high, buy-low discipline. Common cadences: annually, semi-annually, or threshold-based (rebalance when allocation drifts more than 5% from target)..
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