Having an allocation of stocks, bonds, and short-term investments appropriate for your goals and tolerance for risk is important, especially when the market is volatile and you may be tempted to make short-term moves.
Although unnerving at the time, history has shown that some of the worst short-term losses in the stock market were often followed
Continue reading Rebalance to Reduce Your Portfolio Risk
For most individual investors it pays to have a long-term perspective and not worry about volatility. You can focus on long-term goals and the current environment by using a ”risk budgeting” approach to investing. It isn’t the same as market timing and it keeps the long term in mind. It shares its philosophy with Warren Buffett, who advised us to
Continue reading Investing in Riskier Asset Classes Using the “Risk Budgeting” Approach
When markets rise or fall, your investment rules tell you exactly what to do with your investment money so that you stay on track to build wealth. You should have an “investment policy” comprised of two types of investment rules.
The first set of rules are the asset allocation rules. You decide what percentage of your
Continue reading Every Investor Should Have Investment Rules for Asset Allocation and Rebalancing
Using an ETF strategy may help you achieve better investment returns than the overall market.
Start by buying ETFs that mimic broad indexes. Then use 200-day moving averages and sector rotation shifts to balance and rebalance your portfolio as needed – not daily, but at least several times a year.
This is what large investment firms can’t do, for
Continue reading How do you Beat the Street?
When you should rebalance your investments is an important decision. It goes along with all of the other important decisions such as coming up with your allocation percentages.
If you have studied your investment temperament, studied your prosperity goals (so that you know when you will need to start tapping into your funds) and have
Continue reading Timing Portfolio Rebalancing – When to Rebalance