Rebalancing

Buying or selling securities to maintain or change your asset allocation. Let’s say you had an 80/20 allocation of 80% stocks and 20% bonds and you wanted to play it a little safer and switch to 70/30. You would sell some of your stock and invest the money in bonds . . . thereby rejiggering or “rebalancing” your portfolio.

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2017-12-13T16:08:47+00:00

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