Share this:  This is a part of the Investing Series.   Something
that people kept repeating and I didn’t understand when I
started, was what “re-balancing a portfolio” meant.  I was
imagining clowns and elephants on little blocks, but I was
fairly sure it wasn’t as fun as that.   A portfolio just means
all your money.  They say portfolio to make you think of
something like a folder to hold all of your investments in
stocks, bonds, mutual funds, cash, etc.   The best motto to
describe the act of “re-balancing your portfolio” is: “Not
keeping all your eggs in one basket”   Photograph I took in
Beijing, China  Re-balancing your portfolio means you’re just
making sure you aren’t too heavily invested in one area versus
another, based on what you’ve set out as your investing
strategy.  It’s like adjusting the wheel of a car — you know how
sometimes a car drifts to the right or the left sometimes
because it it isn’t balanced or tuned up correctly?  Well re-
balancing your portfolio is like taking the wheel and adjust