Osborne Adams
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- Dec 12, 2025
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Many investors only think about rebalancing after a big market move. By that point, the portfolio may already be doing something different from what the investor can comfortably hold. That is why I see rebalancing as maintenance, not as a prediction.
Over time, portfolios drift. If one asset rises, it becomes a bigger slice of the portfolio and a bigger slice of risk. If another asset falls, it becomes too small to contribute meaningfully. Without rebalancing, the market allocates your risk for you, and “diversification” can quietly become “concentration.”
Rebalancing is simply a way to restore the portfolio back to its intended design and risk level. It helps keep decisions calmer when volatility increases, because drift plus volatility often leads to forced decisions at bad times.
Over time, portfolios drift. If one asset rises, it becomes a bigger slice of the portfolio and a bigger slice of risk. If another asset falls, it becomes too small to contribute meaningfully. Without rebalancing, the market allocates your risk for you, and “diversification” can quietly become “concentration.”
Rebalancing is simply a way to restore the portfolio back to its intended design and risk level. It helps keep decisions calmer when volatility increases, because drift plus volatility often leads to forced decisions at bad times.
