Rebalancing is the process of realigning the weightings of a portfolio of assets. Rebalancing involves periodically buying or selling assets in a portfolio to maintain an original or desired level of asset allocation or risk. Portfolio rebalancing safeguards the investor from being overly exposed to undesirable risks.
Calendar rebalancing is the most rudimentary rebalancing approach.
We are coming to the end of this quarter and there are trillions of dollars in pension and sovereign wealth funds to be reinvested. Expect the markets to react accordingly.
When I get my statements, the value in my pension fund holdings never seems to decline much even during the 2008 financial crisis..
Must be like my low risk mutual funds except better.