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Rebalancing a portfolio is a means of maintaining a balanced investment strategy which has to do with alignment with your financial goals that has to do with risk tolerance, and with that of market fluctuations goes on to cause an investment to shift where its increases the exposure that is associated with riskier assets, and with the stocks outperform that of bonds, portfolio which may become stock-heavy, thereby putting one at a greater risk during a market downturn.
Therefore rebalancing can be useful over protecting our investments from unnecessary risk and by keeping long-term goals on track, where investors make selection for rebalance annually and with the timing all depends on market conditions with that of individual preferences, hence staying proactive over rebalancing improves that of the portfolio stability.
Am @kingworld-line
