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Re-balancing is the process of restoring a portfolio to its original asset allocations and risk profile. It is an ongoing process because each asset class within the portfolio is likely to shrink or grow by a different percentage over time, altering the risk (and expected return) of the portfolio. In addition, rebalancing provides practice for resisting temptation to second guess your strategy during the inevitable difficult periods. The time to be a buyer, instead of a panicked seller, is when an asset class is performing poorly. Re-balancing in good times, when markets are rising, enables you to develop the skills and the discipline to also do it in tough times. | 
