Look beyond individual assets
Several apparently different holdings can respond to the same economic forces. Portfolio analysis considers exposures across companies, sectors, countries, currencies and sources of return.
Keep the portfolio aligned
Market movements can alter the balance of a portfolio over time. A review framework can identify drift, concentration and changes in liquidity without requiring a reaction to every headline.
Document the decision rules
Rebalancing involves costs and may have tax consequences. The appropriate process depends on circumstances and should be established before periods of market stress.