Rebalancing

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Rebalancing

Realigning the proportions of assets in a portfolio as needed.

Rebalancing

The act of changing the percentages of different types of securities in a portfolio, especially according to changes in one's investment goals. Most portfolios are diversified to a greater or lesser degree; that is, they contain different types of securities in different proportions. If one's investment goals change (or if the portfolio is not meeting them satisfactorily), one rebalances the portfolio in order to achieve them. For example, if a portfolio is half bonds and half stocks and an investor wishes to have lower risk, he/she might rebalance the portfolio to be three quarters bonds and one quarter stocks.
References in periodicals archive ?
According to Austin, plan sponsors should keep in mind the many investment options plan participants must rebalance.
Remember that to really meet your long-term goals, you must stay true to the risk and return exposure you've set in the retirement portfolio, and to do that you have to regularly rebalance," agrees Richard Yasenchak, a senior vice president and client portfolio manager for INTECH in West Palm Beach, Florida.
Because these changes are constant, he says, it makes sense to build a portfolio that tries to account for them in deciding when to execute a rebalance.
How a Chinese slowdown affects the global economy, in other words, depends crucially on how China rebalances.
Much depends on how Chinese leaders rebalance the economy, and signs so far point to a smooth transition, explains Michael Pettis, author, finance professor at the University of Peking and senior associate at the Carnegie Endowment for International Peace.
When and how often should fund investors rebalance their portfolios?
Otherwise, for example when market fluctuations are significant, he may rebalance his portfolio in order to keep the ratio exposure/cushion within a given set of values.
1]=6, the probability to rebalance during one week is about 60% whereas, for [m.
What sets Newport's version of this feature apart is that it allows participants to rebalance across multiple accounts," explained Eric Brickman, Vice President of Strategic Initiatives for Newport.
Unfortunately, Rebalance left me with the latter impression.
I had booked the in-house Signature Rebalance Massage, having had a very stressful fortnight which left me in need of some pampering and no small amount of unknotting.