Rebalancing Investments (Paperback)

Please note that the content of this book primarily consists of articles available from Wikipedia or other free sources online. The rebalancing of investments is the action of bringing a portfolio that has deviated away from one's target asset allocation back into line. Under-weighted securities can be purchased with newly saved money; alternatively, over-weighted securities can be sold to purchase under-weighted securities. The investments in a portfolio will perform according to the market. As time goes on, a portfolio's current asset allocation will drift away from an investor's original target asset allocation (i.e., their preferred level of risk exposure). If left un-adjusted, the portfolio will either become too risky, or too conservative. If it becomes too risky, that will tend to increase long-term returns, which is desirable.