Lesson 3: Rebalancing in a Crash. After a 50% equity drawdown, your bond sleeve is overweight and your stock sleeve is underweight. Now you have to buy stocks. On purpose.
Stocks just fell 50%. Now what?
Trust your gut before the lesson makes the case.
Assessment
Stocks just halved. Your rule says rebalance back to your target mix. Mechanically, what does that force you to do?
Stocks just halved. Your rule's about to ask something 😰