Rebalancing - do I really have to?

Humans have a hard time being investors. Normally, we like to purchase things when they are cheap and avoid them when they are expensive, but that is often not the case for equities. We tend to get overly optimistic and enthusiastic when equity markets rise dramatically, as they have done since the Global Financial Crisis a decade ago. Yet when markets fall materially, we feel bruised and cautious, seeking to hang onto our stable bonds and even selling equities to avoid further falls in portfolio value. That’s rarely a good idea, especially if you do not need the bulk of your capital in the foreseeable future.