FAQ #16

1 min read

If some stocks remain bearish for more than a week, how will you rebalance if the rebalance frequency is monthly ? By the end of a month, that stock may further go down resulting in losses.

Yes – some stocks can become very bearish before the next rebalance or even over a few minutes. This will be a point of concern only for those portfolios that are not adequately position sized.

All WeekendInvesting portfolios are very well adequately position sized and the overall portfolio will not have a high impact even if a particular stock in the portfolio goes to zero. We have explained this in detail in this video.

Hence an advance rebalance will never be required.

If you have any further doubts or questions, please send an email to support@weekendinvesting.com

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    FAQ #16