The Name of the Game: Rebalancing (Article)
The Name of the Game: Rebalancing
If you came into the year with a portfolio diversified between stocks, bonds, and hard assets, you’re definitely feeling the pain of declining market values, but less than you otherwise would be if you weren’t fully diversified. Now, rebalancing your portfolio is the smart play. That means selling some of the assets in your portfolio that have done well, or less bad, and buying more of the assets that have been hardest hit. If the stock market falls another ten percent, look at this as an opportunity to rebalance again. While this may seem counterintuitive, the mantra of “buy low, sell high” comes into play here. Rebalancing your portfolio and staying diversified will help you maximize your returns in the end. Visit your plan’s participant website to rebalance.
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