By John P. Napolitano
Spring is in the air, and with the change of season, investors often turn their attention to rebalancing their portfolios. Simply put, portfolio rebalancing is the process of selling some holdings and buying others to bring the portfolio back to its desired allocation of asset classes. An asset class can be broadly defined - such as stocks, bonds, real estate or metals. As certain positions grow and others decline in value, the portfolio strays from the original allocation and needs to be brought back into line with the investor's objectives.