2 ms·
You chose a portfolio distribution, 75% NASDAQ 25% S&P. After 1 year, you look at your portfolio, and because of market movements, your portfolio is now 81% NA
by Workaccount2 3y ago
You chose a portfolio distribution, 75% NASDAQ 25% S&P.
After 1 year, you look at your portfolio, and because of market movements, your portfolio is now 81% NASDAQ and 19% S&P.
So you sell some NASDAQ and buy some S&P to rebalance to 75% / 25%.
Rebalancing can be any mix of securities or assets (or both). You decide how you want your wealth distributed, and you rebalance to stay within those levels.