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Masters in Business

At the Money: Using Volatility to Rebalance Portfolios

Mar 27, 2024
Liz Ann Sonders, Chief Investment Strategist at Schwab, discusses using volatility to rebalance portfolios. She emphasizes 'add low, trim high.' Sonders highlights market swings, new highs, and the importance of taking advantage of volatility to adjust investments.
12:46

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Quick takeaways

  • Volatility is the norm, use market swings to rebalance portfolios.
  • Customize investment strategies based on individual circumstances for long-term financial well-being.

Deep dives

Understanding Individual Investor Risk and Time Horizon

Individual investors, based on their unique situations and risk tolerance, should approach their portfolios differently. For instance, a 25-year-old thrill-seeker with a $10 million inheritance can take more risks, unlike a 75-year-old relying on investment income. This highlights the importance of customizing investment strategies to align with individual circumstances.

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