Rebalancing during Tough Marketsby Keith Fitzgerald
Tough markets can really skew your financial perspective. And your portfolio balance. Rebalancing can help you get back on track to higher returns, as we've mentioned in the past. Not only does rebalancing force you to take profits, but it also encourages you to put more money to work in areas that have been hit the hardest (and which are also poised for the biggest-potential rebounds, studies show).