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Aidan Geysen

Rebalance to get risk levels right and a better recovery

A rebalanced portfolio is more likely to closely align with target asset allocation than a portfolio that is never rebalanced.

Aidan GeysenContributor

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As the Australian Stock Exchange exits an 11-week bear market and the most severe of restrictions imposed across Australia are lifted, now is a good time for investors to consider rebalancing.

If your growth asset component shrank significantly with the fall in share values, while your defensive assets such as bonds and cash rose, did you act and rebalance and therefore are now seeing the benefit of the rebound in shares?

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Aidan Geysen is head of investment strategy at Vanguard Australia.

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    Original URL: https://www.afr.com/wealth/investing/rebalancing-out-of-covid-19-20200528-p54x80