Posted by on May 1, 2020 in Articles & Advice, Blog, Books, Columns, Featured |

Image Credit: Alex Nabaum



By Jason Zweig | May 1, 2020 10:00 am ET


The market wisdom that sounds the easiest can be the hardest to follow.

Take “buy low, sell high.”

Buying low and selling high is logically sound but emotionally harrowing. That’s because it requires buying something that feels risky because it just went down, while selling something that feels safer because it has just gone up. That counterintuitive step is what investment professionals call rebalancing: moving against the market’s recent direction to adjust your mix of stocks, bonds and other assets back to predetermined targets.


To read the rest of the column:


For further reading:


Benjamin Graham, The Intelligent Investor

Jason Zweig,The Devil’s Financial Dictionary

Jason Zweig, Your Money and Your Brain

Jason Zweig, The Little Book of Safe Money


Articles and other resources:

William Bernstein,, “The Rebalancing Bonus: Theory and Practice,” “When Doesn’t It Pay to Rebalance?“, “Case Studies in Rebalancing,” “Rebalancing: Practical Issues

Vanguard Group, “Best Practices for Portfolio Rebalancing

Winning It by Trimming It

A (Long) Chat with Peter L. Bernstein

Investing Experts Urge ‘Do as I Say, Not as I Do’