Rebalancing Confusion
I was forwarded an article on year-end portfolio “rebalancing”. First it said:
“Lighten up on longtime winners like small stocks, gold shares and real-estate investment trusts.”
Then it said very next line:
“Make sure you have a full weighting of growth stocks, blue chips and Japanese shares — and don’t be too quick to trim your positions if they roar ahead.”
These statements contradict each other. How and why should you lighten up on longtime winners (I assume they are still winners), but also at the same time not trim positions that are roaring ahead?
