As recession fears loom and political instability rises, investor sentiment has turned grim. Last week’s massive plunges in global markets might be just the beginning.
When the stock market suffers a major sell-off for whatever reason, it’s tempting to freeze, panic, or simply look the other way. But that’s the moment when disciplined investors can actually strengthen their portfolios.
One of the most effective tools at your disposal is rebalancing: realigning your asset mix to match your long-term goals while taking advantage of temporary dislocations in the market. Here’s how to approach rebalancing your portfolio after a big market drop, step by step.
This post originally appeared at Investing Daily.