Account Rebalancing
In order to maintain your portfolio it is imporant to rebalance it regularly to get it back to your initial, pre-defined asset allocation. In its simplest form, rebalancing is when an investor sells an asset class that has appreciated and buys the asset class that has depreciated.
Gold Medal Waters rebalances client portfolios on a regular schedule in order to capture investment appreciation and uses the proceeds to buy asset classes that have depreciated or had slower growth.
For many, this seems counterintuitive. Many investors (and advisors alike) instead want to sell what has gone down and buy what has gone up. However, following a philosophy of this type forces you into a buy high, sell low mindset.
