portfolio rebalancing

Personal finance commentary is explaining rebalancing: the practice of restoring a portfolio to its target allocation by selling assets that have grown and buying those that have lagged, keeping risk in check without market predictions. The explanation uses a simple example — an 80/20 stock-bond mix drifting over time — to show how the discipline works.

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.