How can you rebalance your portfolio?

King bell

VIP Contributor
If you're like most investors, you probably have a portfolio that includes a mix of stocks, bonds, and other assets. But over time, that mix can get out of balance.

That's why it's important to rebalance your portfolio on a regular basis. By doing so, you can make sure that your portfolio continues to reflect your investment goals and risk tolerance.

There are a few different ways to rebalance your portfolio. One is to simply sell some of the assets that have increased in value and use the proceeds to buy more of the assets that have lost value.

Another approach is to periodically adjust your asset allocation. For example, if you have a portfolio that's 60% stocks and 40% bonds, but you want to maintain a 50-50 mix, you can sell some of your stocks and use the proceeds to buy more bonds.

whichever approach you choose, rebalancing your portfolio is a smart way to keep it aligned with your investment goals.
 
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