[USER]

When the market is on a downward trend, many investors find themselves at a crossroads:

should they stick to their long-term strategy and rebalance their portfolio, or should they avoid making changes until conditions stabilize?

On one hand, rebalancing could potentially position your portfolio for future gains by aligning it with your risk tolerance and goals.

On the other hand, it might lock in losses or miss out on potential recoveries.

We want to hear your thoughts and experiences.

Do you think rebalancing in a down market is a prudent move, or could it backfire?

Share your insights!

[Steve]

Your different investments will be down at different rates, so your withdrawal strategy should do the rebalancing for you.

[Ben]

I just rebalance on the first of the year regardless it doesn’t matter to much to me because that’s how indexes work as well.

Generally if you invest in a taxable account I probably wouldn’t rebalance what I would do is just rebalance by buying more of some assets til it is at the right percentage of your account

[Imran]

Work on a 1 or 2 fund portfolio. No need to rebalance and complicate the process.

[Tejbir]

Rebalance it on basis of weight and valuation per stock basis rather than the overall market position

[Hunter]

“Rebalance”?
Keep 3 months living expenses in a HYSA.

The rest should be in an S&P index fund.

14% YTD

24% each of the past two years.

[Author]

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