Market volatility can feel unsettling, but it also presents opportunities for disciplined investors. This past week, the S&P 500 hit 10% down from its 52-week highs—a correction, not a bear market. While short-term swings can create uncertainty, they also provide moments to assess and realign portfolios. At Members’ Wealth, we seek to use opportunistic rebalancing to move portfolios back in line with long-term financial goals, navigating market fluctuations to work in our clients' favor rather than against them.

Opportunistic Rebalancing: Turning Market Swings into Advantage

Unlike calendar-based rebalancing (which follows a set schedule), opportunistic rebalancing is dynamic, allowing us to adjust portfolios during market volatility when it presents a potential advantage. When warranted, we may reallocate assets at strategic moments, seeking to keep portfolios aligned with long-term objectives.

Today’s portfolios look significantly different from those in the past. Where investors once relied heavily on mutual funds, modern strategies now blend ETFs, direct indexing, separately managed accounts, individual stocks, and private investments (and then some!) —each tailored to a client’s specific financial plan. We believe the ability to adapt while remaining rooted in core principles is essential to long-term investment success.

Why Rebalancing Matters in a Market Correction

Market corrections impact portfolio allocations, sometimes shifting them away from the intended risk balance. Consider a 50/50 stock-to-bond hypothetical portfolio:

• If stocks decline 10%, a portfolio that started with $500,000 in stocks and $500,000 in bonds would shift to $450,000 in stocks and $500,000 in bonds—altering the allocation to 47/53 instead of the intended 50/50.
• If maintaining a 50/50 balance was part of the original investment plan, rebalancing helps restore that balance, potentially positioning the portfolio for long-term growth as markets recover.

It’s not about predicting market bottoms or making short-term bets—it’s about staying disciplined and seeking to keep portfolio allocations aligned with each client’s financial goals.

Let’s Talk About Your Portfolio

If you’re wondering whether your portfolio is still aligned with your long-term strategy-what activity we did or did not take on your behalf and why—or how other rebalancing might fit your financial plan during these volatile time—let’s have a conversation. Proactive adjustments can help keep you on track, regardless of market conditions. We’re here to manage your investment plan so it can remain aligned with your goals, providing guidance through both calm and volatile markets.

📩 Reach out to us today to discuss your portfolio and long-term strategy.

Investment strategies, including rebalancing, do not guarantee improved performance and involve risk, including potential loss of principal. Past performance does not guarantee future results.

The information provided is for educational and informational purposes only and does not constitute investment advice and it should not be relied on as such. It should not be considered a solicitation to buy or an offer to sell a security. It does not take into account any investor's particular investment objectives, strategies, tax status or investment horizon. 
All information has been obtained from sources believed to be reliable, but its accuracy is not guaranteed. There is no representation or warranty as to the current accuracy, reliability or completeness of, nor liability for, decisions based on such information and it should not be relied on as such.

About the Author – Dane Czaplicki, CFA®

Dane Czaplicki is CEO of Members’ Wealth, a boutique wealth management firm that offers a comprehensive approach to serving individuals, families, business owners, and institutions. The firm’s goal is to preserve and grow its clients’ wealth to endure over time, while thoughtfully evolving its strategy to suit an ever-changing world. With over 20 years of wealth management experience, Dane and the Members' Wealth team thrive on bringing clarity and confidence to clients' unique situations. He believes everyone needs sound financial advice from someone whose interests are aligned with theirs, and is determined to put service before all else.

Dane received his MBA from The Wharton School of Business at the University of Pennsylvania and his bachelor’s degree from Bloomsburg University. Outside work, he enjoys spending time with his wife and kids, hiking and camping, reading, running, and playing with his dog. To learn more about Dane, connect with him on LinkedIn.

To get in touch with the Members’ Wealth team today, I invite you to email info@memberswealthllc.com or call (267) 367-5453. 

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