Almost everyone agrees that rebalancing your portfolio is one of the keys to having a successful investment outcome. We know that your asset allocation determines how your portfolio will perform. Successful investors spend a lot of time determining what they want to include in their portfolios, and how they want to spread out their assets. Once you put your portfolio into practice, the markets have ideas of their own. The market is going to drag your beautifully designed portfolio through every mud puddle it can possibly find. It’s your job to pick your portfolio up, dust it off, and point it back in the right direction. This is where rebalancing comes into play. Rebalancing brings your portfolio back into line, and ensures that you are (roughly) taking the right amount of risk through time. There are other benefits to rebalancing that people talk about – most notably that it systematically forces you to buy low and sell high – but keeping your portfolio dialed in on your appropriate level of risk is the big one. If you don’t periodically bring your portfolio back into alignment, then all the time you spent lovingly crafting your asset allocation will be wasted. Pretty […]
McLean Asset Management Corporation (MAMC) is a SEC registered investment adviser. The content of this publication reflects the views of McLean Asset Management Corporation (MAMC) and sources deemed by MAMC to be reliable. There are many different interpretations of investment statistics and many different ideas about how to best use them. Past performance is not indicative of future performance. The information provided is for educational purposes only and does not constitute an offer to sell or a solicitation of an offer to buy or sell securities. There are no warranties, expressed or implied, as to accuracy, completeness, or results obtained from any information on this presentation. Indexes are not available for direct investment. All investments involve risk.
The information throughout this presentation, whether stock quotes, charts, articles, or any other statements regarding market or other financial information, is obtained from sources which we, and our suppliers believe to be reliable, but we do not warrant or guarantee the timeliness or accuracy of this information. Neither our information providers nor we shall be liable for any errors or inaccuracies, regardless of cause, or the lack of timeliness of, or for any delay or interruption in the transmission there of to the user. MAMC only transacts business in states where it is properly registered, or excluded or exempted from registration requirements. It does not provide tax, legal, or accounting advice. The information contained in this presentation does not take into account your particular investment objectives, financial situation, or needs, and you should, in considering this material, discuss your individual circumstances with professionals in those areas before making any decisions.