Rebalancing

Restoring a portfolio to its target asset mix.

Rebalancing means periodically buying and selling to bring a portfolio back to its intended allocation after market moves shift the weights. It enforces a disciplined buy-low, sell-high habit and keeps risk aligned with the investor plan rather than drifting with the market.

After stocks surged, she did some rebalancing, trimming winners and topping up bonds to hit her targets.