With the level of market volatility that we experienced in 2018, it is possible that your preferred asset allocation may be off target. Say, for example, that your target international stock allocation is 30% of your portfolio. In 2018, your international holdings dropped to 20%, due to weakness in global markets.
To re-balance your portfolio to its original target, you would sell enough of what increased in your portfolio to restore your international holdings to 30%.9