I have a portfolio that I try to keep at 3 to 4% per stock. Should I rebalance monthly or yearly? Some of the stocks are up 50 to 150%. Could someone please give me some guidence.
When you have stocks which are performing nicely, it can be a good idea to reevaluate their potential frequently, and perhaps sell part of the position to claim profits and diversify. That can funnel into rebalancing, but rebalancing is more important for long term investors who do not keep a close eye on their investments.Perhaps you should rebalance quarterly and more often if you have a good reason--as circumstances indicate.
Hi,Annual rebalancing is adaquate. But rebalancing with a stock portfolio isn't easy as you might windup selling winners either too soon or that should be kept indefinitely.Three to four per cent sounds pretty low unless you have some mutual funds too.Best,pl
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