Rebalancing

Rebalancing is an important Wealth Management tool to help reduce the risk you take in your portfolio and help increase your returns, what’s important to understand is each asset class has it’s purpose. They are designed to each have their own characteristics and fluctuate as markets move. This effect typically causes an asset to go up and down throughout your investment life. Understanding that timing these phenomena are virtually impossible as no asset manager has consistently been recorded to do so. With that being said, I want to show you the asset classes and the inconsistency of the investments. By diversifying in each asset class you will be taking advantage of the market volatility and fluctuations. By ongoing wealth management, we monitor the portfolio and when a portfolio is out of whack, we rebalancing your winners and losers. This is important as the theory allows you to always, “Sell High” and “Buy Low” by¬†design. Now this is a theory as we cannot guarantee that this will always be the case. But as Harry Markowitz and other Nobel Prize winning individuals have proven, overtime this helps reduce risk and increase returns over time.