Why rebalance now? Well, now that you've made up some of your losses from last year, it might be time to protect your gains from further losses. After all, the market does not usually have 50% run ups very often, so bank some of your gains. Of course, the market could continue to go up further, so don't take everything out of the market. This is why asset allocation is important. Obviously, your age, investment experience, goals and objectives, and time horizon are very important factors in the asset allocation equation. Everyone is different. As in life, learn from your mistakes and use your life experiences to gain wisdom and capitalize from it. What if you had protected some of your gains in October of 2007 at the previous market high? You wouldn't have suffered nearly the losses that you did. So don't beat yourself up for past mistakes. Focus on the future and move on. You'll be glad you did! Oh, and keep saving and paying off debt. These are good things! Don't let anyone tell you otherwise.
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