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Investing Specialists

The Why and How of Rebalancing

Reducing your portfolio's risk (and potentially enhancing its return) needn't be an arduous affair.


75% stock/25% bond.

That's the current asset allocation of a portfolio that was 50% stock/50% bond at the outset of the current market rally--which stretches back to March 9, 2009. If the hypothetical investor had added more money to stocks during this period, as investors are often inclined to do when stocks are going up, the equity allocation would be even more lofty.

Christine Benz has a position in the following securities mentioned above: VPCCX. Find out about Morningstar’s editorial policies.