Considering how much markets have fluctuated over the past month, now could be an opportune time to rebalance. Rebalancing involves periodically buying or selling assets in a portfolio to maintain an original or desired level of asset allocation or risk. So let’s review the basics.
Having a diverse investment portfolio doesn’t eliminate the risks of investing. However, it can pay off. How? By providing you choices that help reduce the impact of down markets if some of the portfolio has to be sold. In that sense, it’s wise to have a broad array of investments in your portfolio. And, since we’ve entered a bear market, let’s examine the benefits of diversifying an investment portfolio.