"It's been a heady time for stocks, with the
Dow Jones Industrial Average soaring almost 27% in 2013. After such
lofty gains, the stock portion of your portfolio may be much larger than
your risk appetite can handle. Rebalance back to your desired
percentage of stock holdings."
"It's about managing risk," says
Robert Stammers,
director of investor education at the CFA Institute. "If you just
let it run, the next thing you know you're 90% in stocks. Then, God
forbid, we have a crash and there go your assets." Quoted from "Put Your Financial
House in Order,"by Andrea Coombes in the January 11 Wall Street Journal.
For guidance in rebalancing check out the 7Twelve Portfolio at http://7twelveportfolio.com/
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