Here’s Why You Should Rebalance

“Over the past decade, investors have become accustomed to U.S. stocks hitting new all-time highs. While the extended bull market has been a boon to portfolio balances, investors that have let the market's rise drive their equity allocations higher may now be holding riskier portfolios than they initially signed up for. For example, a hands-off investor that built a traditional 60/40 portfolio 10 years ago would have a portfolio that's closer to 80% in equities as of the end of 2019. It's possible our hypothetical investor's risk tolerance skyrocketed along with the stock market, but it's more likely that the current portfolio no longer resembles an appropriate blend of risky and safe assets.” Continue reading.

Source: Morningstar