Lofty stock returns and muted bond growth may mean investors need to rebalance their allocations to bring them back to target.Congratulations! After taking a victory lap, it may be time to adjust your portfolio — because those heady returns likely threw your investment allocations out of whack., a stock index of the largest public U.S. companies by market capitalization, gained 23% in 2024. Cumulative S&P 500 returns over the past two years were the best since 1997 and 1998.
"If the allocation gets too big or small, consider buying or selling to get your money back in balance," she said."Wall Street portfolio managers do this on a regular schedule. It's a prudent investing exercise."Rebalancing isn't just about stocks versus bonds. Investors may also be holding other financial assets like cash.An investor's stock bucket might have large-, mid- and small-cap stocks; value and growth stocks; U.S.