How often should I rebalance my portfolio?
Published 19 September 2026
If my target allocation changes because equity rallies or crashes, when should I actually rebalance? Should I do it every year or only when allocations move significantly?
One approach discussed in the video is a strategic allocation: choose a target mix and rebalance on a schedule, perhaps once a year, or when an asset moves beyond a predetermined band.
For example, when equity falls below its target weight, you add from relatively stronger assets. When equity becomes overweight after a rally, you trim it.
This is not an attempt to predict market tops and bottoms.
Rebalancing is a mechanical discipline of buying relative weakness and selling relative strength.
“When equity falls below its target weight, you add from relatively stronger assets. When equity becomes overweight after a rally, you trim it.”
“This is not a prediction of tops and bottoms.”
This is not personalized investment advice. Your goals, time horizon, risk tolerance and financial situation may be different, so assess your own situation and discuss it with your financial advisor.
For example, when equity falls below its target weight, you add from relatively stronger assets. When equity becomes overweight after a rally, you trim it.
This is not an attempt to predict market tops and bottoms.
Rebalancing is a mechanical discipline of buying relative weakness and selling relative strength.
“When equity falls below its target weight, you add from relatively stronger assets. When equity becomes overweight after a rally, you trim it.”
“This is not a prediction of tops and bottoms.”
This is not personalized investment advice. Your goals, time horizon, risk tolerance and financial situation may be different, so assess your own situation and discuss it with your financial advisor.