There is a common problem in the world of investing, and that is maintaining a particular asset allocation over a long period of time without it getting out of wack. We combat this phenomenon by rebalancing our portfolio, but it isn't just that easy. There are a lot of external factors that can impact whether or not we should rebalance our portfolio at one point in time or if we should even rebalance at all. This is all a way to manage our risks and keep our portfolio's risk-return relationship from getting derailed. Today, we will discuss:
1. What it means to rebalance your portfolio
2. The advantages of rebalancing
3. The downsides of rebalancing
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