Summary of Rebalancing Your Portfolio

Although you might object to having to sell a good performer in your portfolio, you might later kick yourself during a downturn when it loses a good deal of value and you didn’t lock in your gains by selling it.

Of course, it may just as well recoup its value in the near future. But no one knows until after the fact. On top of that, the overall risk level of your portfolio is now too high. Thus, you should check on your portfolio periodically and use rebalancing techniques to keep it in line with what you want it to do.