Have you ever heard the phrase “under promise, over deliver”? That is exactly what the stock market has done this year. As of yesterday, the S&P was up over 22% year to date (YTD) and the Nasdaq was up over 25% YTD. Based on financial models leading into the year, expectations were in the high single digits for expected returns based on the market’s performance in 2018. What has this run up caused portfolios to do. See a surge in the equity allocation of their portfolio. For those who pre-determined allocation mix of stocks, bonds, and cash, you probably have seen a significant shift in this number. To get back to your set allocation, you’ll need to do some rebalancing. That will involve selling off some of the stocks and equity funds to place that money back into a different asset class. Even if you following a 100% equity allocation, this may be a good time to look at some of your holdings to examine whether they may be at the top of their run up and possibly in for a dip. I’m not suggesting timing the market but rebalancing is something an experienced investor considers whenever the market is seeing all time highs like we have witnessed in 2019.