Introduction to Rebalancing Your Portfolio

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You may need to sell some of your winning investments to keep your portfolio balanced. We will explain the logic of that in this course.

What you will learn

  • What Rebalancing Is
  • Why Bother Rebalancing Your Portfolio?
  • How to Rebalance Your Portfolio
  • Rebalancing Guidelines

What do you know?

Introduction to Rebalancing Your Portfolio

You’ve probably never heard someone say, "I can see why you stick with that guy—he’s a real loser!" Everyone prefers winners.

So if an investment is successful, naturally, you’d want to stick with it. The last thing you’d want to do is sell some of your winners to invest more money in your investments that aren’t doing as well.

No matter how unnatural that practice seems, however, that process—called rebalancing—is an essential part of managing your investment portfolio.

Here’s what rebalancing is, why it’s important, and how to do it.