Hi Tom I suppose that MIGHT happen but a LOT more money will move to fixed income in the example you gave. You can always not rebalance for a small change in value also. For instance I did not rebalance a friend's account this year because : 1) I accounted for the cash she would be adding this year when I rebalanced last year (I left stocks just a little heavy 2) All the holdings are +- a few % of where I want them Toofuzzy