Markets

Understanding Rebalancing in a Volatile Market

Daniel Okafor

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7

Rebalancing is a discipline, not a reaction

When equities fall sharply, a rebalanced portfolio automatically buys more of what’s now cheaper. That is uncomfortable in the moment and is exactly why so few investors do it without a process.

We rebalance on a schedule and against bands, not on headlines, which keeps emotion out of the mechanics.

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