What is the ideal strategy for portfolio Rebalancing? Assume that portfolio has 50/50 stocks/bonds and the target is 80/20 stocks/bonds.
Option 1 - Sell the bonds to buy stocks and continue investing normally with 80/20 stocks/bonds division.
OR
Option 2 - Dont sell anything but instead for the next time period invest more in stocks and less in bonds so that at the end of investment period estimate will be back to 80/20 stocks/bonds.
Submitted January 09, 2022 at 12:37AM by spicyangryred https://ift.tt/3F7rSde
