Rebalancing Your Portfolio

Asset allocation is an ongoing process.

As stock market environments change, you should reconsider your asset allocation. Your individual situation and investment goals may change. Periodic rebalancing may be necessary to help manage risk and maintain effective diversification.

Because stock markets, stock market segments, and individual securities tend to rise and fall, the percentages allocated to your specific asset classes over time may no longer be in sync with your initial desires. Rebalancing forces you to trim back on winners and increase undervalued categories to maintain your original asset allocation strategy, if that is what you still desire.