Q: this question is about rebalancing for "balanced positions" and those for "small cap growth positions" within an overall portfolio.
for example, ATD.B in the balanced portion of the overall portfolio now has a market value of about $25,000 or 5% of the overall portfolio.
as it understand the i5R investment approach, when it reachs 7%, then I would sell some ATD.B share to get back to a 5% weight, right?!
now for the small cap growth positions…..with the position cost being $2,500…..or about 0.5% of the overall portfolio,
what is the rebalancing rule of thumb?……..do I hold until a small cap growth stock gets to $25,000, or to some lesser amount that is less than the 7% of the overall portfolio???
for example, ATD.B in the balanced portion of the overall portfolio now has a market value of about $25,000 or 5% of the overall portfolio.
as it understand the i5R investment approach, when it reachs 7%, then I would sell some ATD.B share to get back to a 5% weight, right?!
now for the small cap growth positions…..with the position cost being $2,500…..or about 0.5% of the overall portfolio,
what is the rebalancing rule of thumb?……..do I hold until a small cap growth stock gets to $25,000, or to some lesser amount that is less than the 7% of the overall portfolio???