How Rising Assets Shift Portfolio Weights
Summary
Hollow Point Trading explains how portfolio weights can shift without new purchases. In a hypothetical $10,000 portfolio split 60% into asset A and 40% into asset B, a 20% gain in A changes the allocation even when B stays flat and there are no deposits or withdrawals. Understanding this effect helps the community track risk and make informed rebalancing decisions.
https://youtu.be/byNqtX9uJro
A winning asset changes its portfolio weight without a new purchase...
An asset can become a larger portfolio weight without buying another share. Start with a hypothetical ten thousand dollar portfolio: six thousand in asset A and four thousand in asset B. The starting weights are sixty and forty percent. Suppose A rises twenty percent while B stays unchanged, with no deposits or withdrawals. A becomes seventy two...
