2000 was the end of a multi-decade Bull Market. Maybe the end was the fall of 2007. Either way we have begun a long-term secular bear maket where investmen success MUST acknowledge that not all companies will necessarily survive in their prior glory, or at all. Monitoring and reacting in a disciplined manner is essential for protecting capital and advancing portfolio values. This chart illustrates the basic steps to make informed adjustments.

Rebalance winners into laggards is only rationale for those who have no clue what to do. Relative strength and Point and Figure charts provide current conditions report allowing an investor confidence in rebalancing from laggards to leaders: a more robust process increasingly recognized by academics.

If you do want to implement this process in your accounts, Investor Resoruces can help. IRI has several portfolio applications available to accomodate portfolios of various sizes. Ask us for a free evaluation of your present portfolio.