PebHmong Discussion Forum

Life & Living => Money & Investment => Topic started by: hmgROCK on February 27, 2020, 10:10:57 AM

Title: in bad time like this in the stock market, you need to think about rebalancing y
Post by: hmgROCK on February 27, 2020, 10:10:57 AM

rebalancing your portfolio


let's say you doing

60% stock   and      40% bonds
$10k                              $4k

your stock drop to

50% stock  and  40% bond
$9k                         $4k

you need to take sell some bonds to bring back the stock to 60%

60%  stock and   40% bond
$10k                      $3k

Title: Re: in bad time like this in the stock market, you need to think about rebalancing y
Post by: hmgROCK on February 27, 2020, 10:14:34 AM

thats how rebalancing work
just a quick version
i just plug random number
you sub your number

Title: Re: in bad time like this in the stock market, you need to think about rebalancing y
Post by: hmgROCK on February 27, 2020, 10:16:01 AM

you do the opposite if bond price drop
sell your stock to buy bonds
and keep it

60% and 40%

if that how want it