Week 47 Day 1: What Rebalancing Is and Why It Matters

Over time, your portfolio drifts. If stocks surge, your 60/40 portfolio might become 75/25 -- far riskier than you intended. Rebalancing means selling what has grown too large and buying what has shru...

Over time, your portfolio drifts. If stocks surge, your 60/40 portfolio might become 75/25 -- far riskier than you intended. Rebalancing means selling what has grown too large and buying what has shrunk, restoring your original target allocation. It is the disciplined act of staying on course.