The Must-Do Money Move You Can't Afford to Put Off Any Longer
The stock market has given investors some of the best performance over the past nine years that they'll ever see in their lifetimes. At times like these, the last thing on many investors' minds is considering the risks in their current portfolio. Yet those who failed to take measures to manage their risk following the massive bull market of the mid-2000s ended up regretting it when the financial crisis dealt their investments a crushing blow in 2008 and early 2009.
No one is telling you that it makes sense to sell off your entire stock portfolio because you fear that a bear market might be coming. Rather, there's one simple way to manage your risk that involves much less dramatic moves, yet it still goes a long way toward ensuring that you'll get maximum benefit from the stock market's past outperformance as well as appropriate exposure to the market's future returns. Just rebalance your portfolio, and you'll be in a much better position whatever happens going forward.
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Source: Fool.com
