Trump tariffs, April 19 -- Rebalancing means adjusting the allocation of assets in your portfolio to match your original investment plan. Example: Shifting funds from stocks to bonds if stocks have grown too much in value. One should rebalance every six months or annually. When allocation drifts by five per cent or more or after major market movements.
Why Rebalancing Matters?-Keeps risk in check-Prevents overexposure to volatile assets-Helps you stick to long-term goals
How to rebalance?
Portfolio Drift Explained-Over time, asset values change-A 60:40 stock-bond portfolio may turn into 75:25 if stocks outperform.-This increases risk unintentionally.
Review current asset allocation
Review. Realign. Rebalance.
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