T'is the season for portfolio rebalancing

A common time to rebalance a portfolio is when a new year arrives. If an investor’s target allocation for stocks is 60% and they let the weighting drift up to 85%, it could get rather painful when the next bear market arrives. The usual way to rebalance during bull markets has been to increase the proportion of bonds. But people now say bond yields are too low and inflation is too high. And bond prices are likely to go down, they say.

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