Advisors urge portfolio rebalancing as bonds sell off — SkimNews
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- S&P 500 returns have run well above their long-term ~10% average — 24% in 2023, 23% in 2024, and 16% in 2025 — and the index is up more than 11% so far in 2026 despite slipping from an August all-time high.
- 10-year U.S. Treasury yields climbed to their highest level since 2023 on Wednesday, with the iShares 7-10 Year Treasury Bond ETF (IEF) down more than 4% year-to-date and the Fidelity Long-Term Treasury Bond Index Fund (FNBGX) down more than 5%.
- Jude Boudreaux, Cathy Curtis, and Kamila Elliott, all members of CNBC's Financial Advisor Council, told CNBC the stock-heavy / bond-depressed setup creates a "buy low, sell high" moment, noting equities have become a larger share of most portfolios.
- Curtis said investors have "multiple geopolitical conflicts, a new [Federal Reserve] chair, the election cycle, rising deficits, and AI disruption" to worry about, and that rebalancing provides a framework that removes emotion from trading.
- Elliott stressed rebalancing is "not a fire sale" — investors shouldn't dump all their equity — and said those approaching retirement can move profits into cash accounts to fund early-retirement income.
- Curtis added that rebalancing "doesn't necessarily mean getting to a target allocation all at once," noting new cash flows, withdrawals, and tax-aware trades can realign a portfolio since rebalancing within taxable brokerage accounts can trigger tax bills.
Why it matters: After three consecutive years of 16-24% S&P 500 returns, most portfolios have quietly drifted stock-heavy — and advisors say rebalancing now would lock in equity gains while buying bond ETFs like IEF at a 4%+ discount, trimming risk before a new Federal Reserve chair, the election cycle, and ongoing geopolitical conflicts reshape the market.
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