Is rebalancing in 2024 a must-do for all investors?
U.S. stocks, as measured by the Morningstar US Market Index, trounced U.S. bonds and international stocks in 2023 and over the trailing three- and five-year periods ended Dec. 31, 2023. As a result, investors may find their portfolios are heavier in U.S. stocks and lighter in bonds and international stocks than they should be.
Investors with longer runways to drawing down from their portfolios—say, those with 25 or more years before they plan to retire—may not have the same pressing need to rebalance as those who are getting within 10 to 15 years of retirement.
If you already own a solid bond or international-stock exchange-traded fund or mutual fund, it may make the most sense for you to jettison some dollars from elsewhere in your portfolio to these existing holdings rather than initiate new positions. But if you’re in the market for a bond…
