Rebalancing
Trading a portfolio back toward its target allocation as markets move it off course.
As asset classes drift with the market, rebalancing restores the strategic weights — selling what has outperformed and buying what has lagged. It enforces discipline and keeps risk aligned with policy.
Rebalancing is unglamorous and quietly powerful. By forcing a family to trim winners and add to laggards, it imposes discipline that instinct resists, and it keeps portfolio risk from drifting upward unnoticed during long bull markets. The hardest part is simply doing it.