You may not like it but, just like broccoli, rebalancing your portfolio is good for you and your investment returns.
At the beginning of each year, the “good for you” tips proliferate in the media as people look to make resolutions that can improve their lives. From healthier eating and increasing exercise to spending less and managing stress, these activities usually involve a hefty dose of willpower. They require us to change our behavior and often mean giving up something that feels good now for something better later on. Portfolio rebalancing belongs on this list. Selling the outperformers in your portfolio and investing in the underperformers can feel wrong but it’s actually the right thing to do.