01/12/2026
A fundamental strategy is to build a well-diversified portfolio that is rebalanced periodically. Diversification across asset classes (stocks, bonds, real estate) and geographies is essential to protect against the failure of any single sector. Rebalancing involves systematically selling assets that have grown (selling high) and buying those that have lagged (buying low) to return your portfolio to its target risk allocation, locking in gains and maintaining discipline.