April 2024 · 6 min read

Building portfolios that stay the course

Diversification, rebalancing, and behavior guardrails matter more than forecasts.

Forecasts change; discipline should not. Establishing allocation ranges helps investors make gradual adjustments without overreacting to headlines.

Rebalancing on a schedule or when weights drift too far restores risk levels and enforces buy-low, sell-high behavior.

Cash and short-term bonds provide a buffer. They allow portfolios to fund near-term needs while long-term assets recover in down markets.