portfolio rebalancing

A personal finance explainer is circulating on what rebalancing means: returning a portfolio to its target allocation, such as 80% stocks and 20% bonds, by selling what has grown and buying what has lagged. The practice is described as a way to keep risk in check without trying to predict markets, with 'drift' as the key concept when holdings stray from targets.

Morningstar has published guidance outlining four key questions investors should consider at the start of the fourth quarter. The piece is aimed at helping investors reassess portfolios, market conditions and positioning heading into the final months of the year, a period often marked by year-end rebalancing and shifting expectations.