How to Realign Your Investment Portfolio in Volatile Times

Why you should realign your portfolio

A sound investing portfolio is diversified. Investors should diversify their portfolios to find the optimum balance between risk and potential returns over time. Market volatility complicates portfolio management by influencing the asset allocation.

Four main stages of the economic cycle.

Stick to your portfolio goals by considering factors like age, risk tolerance, and investment objectives. Rebalancing your portfolio at regular intervals helps maintain the desired asset allocation and risk level.

How often should you rebalance your portfolio?

Plan regular portfolio rebalancing at predefined intervals to minimize costs while ensuring the desired asset allocation. Follow guidelines like the 5/25 rule for efficient portfolio realignment in changing market conditions.

What is the 5/25 rule for rebalancing?

Implement the 5/25 rule to realign your portfolio based on predefined percentage thresholds. Rebalancing your investment portfolio in volatile times is crucial for long-term financial success.

How to rebalance your investment portfolio in volatile times – the bottom line

Realigning your portfolio requires planning and discipline. Emphasize the importance of rebalancing your portfolio with a strategic approach to achieve your investment objectives.