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2574: What Is Portfolio Rebalancing? (And How To Do It) by Sarah Sharkey with The College Investor on Asset Allocation

Optimal Finance Daily - Financial Independence and Money Advice

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The Importance of Portfolio Rebalancing and How to Do It

This chapter explains the significance of portfolio rebalancing and its impact on the stability of an investment portfolio. It discusses the long-term outperformance of stocks compared to bonds, leading to a higher concentration of stocks over time, and highlights the potential risks of not rebalancing the portfolio.

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