Rebalancing is for many investors because it represents a contrarian strategy.

Name: Rebalancing is for many investors because it represents a contrarian strategy.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Rebalancing involves selling assets that have appreciated in value and buying assets that have underperformed. This often goes against the natural tendency of investors to chase performance and buy high while selling low. Therefore, it can be considered a contrarian strategy.

Rebalancing Is for Many Investors Because It Represents a Contrarian