How to Rebalance a Stock Portfolio
by | Posted 12.6.2012 | Post Comment (No Comments)

Stock Portfolio Rebalancing Process

Step 1 – Setting Sector Targets

To rebalance, you need to start with a set of targets for you portfolio. Setting sector targets work best. Considering I personally have over 30 stocks, I could not imagine setting a target for each of my stocks. It’s a lot more manageable to set targets by sector since you can group stocks within a sector. You may decide to have only 1 per sector and that works too. Over time, any investor will start diversifying within a sector just to minimize exposure.

Read the rest of this post @ The Passive Income Earner