From Stocks to Bonds: 10 Essential Portfolio Balancing Techniques

Published Monday August 28 2023 by Michael Hoffman

1. Asset Allocation

Asset allocation is the cornerstone of portfolio balancing. It involves dividing your investments among different asset classes like stocks, bonds, and cash. The goal is to maximize returns while minimizing risk, based on your investment objectives and risk tolerance.

The right asset allocation can make a significant difference in your portfolio’s performance. It’s essential to review your allocation periodically and adjust it based on changes in your financial situation, risk tolerance, and market conditions.