portfolio-balancing

Vocabulary Word

Definition

You've heard of a 'portfolio' right? Now, 'portfolio-balancing' is when you adjust this portfolio. You buy or sell different items to keep a balanced mix. It's like adjusting a car's tire pressure to keep the ride smooth.

Examples in Different Contexts

In retirement planning, 'portfolio balancing' is critical for ensuring that the investment mix remains suitable as the individual approaches retirement. A financial planner might advise, 'As you near retirement, portfolio balancing towards more conservative investments can protect your savings from market volatility.'

Practice Scenarios

Tech

Scenario:

I've been looking at our tech strategy, and I believe we need to consider emerging technologies to stay competitive in the market.

Response:

True, introducing new technologies will require portfolio-balancing to ensure a harmonious tech stack.

Business

Scenario:

Given the recent unpredictability in the markets, I think it's important to reassess our risk profile and potentially re-evaluate our investments.

Response:

I agree. Portfolio-balancing is key to weather this market volatility.