SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Non-Tech : Banks--- Betting on the recovery
WFC 87.12-0.3%Nov 4 3:59 PM EST

 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: Cautious_Optimist who wrote (1253)12/1/2010 8:07:58 AM
From: Road Walker   of 1428
 
Finally, rebalance, by selling your winners and buying more of the losers.

He was talking primarily about sector funds, not individual stocks. If you start out with 50% bond funds and 50% stock funds (for instance) and the mix goes to 60/40, you should buy/sell to re balance to the 50/50 target. Same with small cap/large cap, overseas/domestic. Based on the principle that broad sectors are cyclical and today's under performer will be tomorrows out performer.

Investing 101.
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext