Tag Archives: portfolio rebalancing

Rebalancing is a form of both risk management and a systematic way to carry out a contrarian investment strategy. The entire point of allocating money to different investments in a thoughtful way is to create a risk-return profile that balances out your long-term objectives with your short-term comfort level. Deviating from that risk-return profile can be a huge behavioral risk if you’re not aware of how it can change your portfolio’s composition.

Gold stocks have historically ranked among some of the most volatile asset classes - about three times that of gold bullion - but despite this volatility, our research shows that investors can use gold stocks to enhance returns without adding risk to the portfolio. [Let me explain.] Words: 560