PebHmong Discussion Forum
Life & Living => Money & Investment => Topic started by: hmgROCK on February 27, 2020, 10:10:57 AM
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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
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thats how rebalancing work
just a quick version
i just plug random number
you sub your number
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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