Over time, market conditions can change: some assets may rise in value, while others may fall. This can unbalance your portfolio. For example, if stocks rise in value faster than other assets, your portfolio may become overly risky. To avoid this, it is important to rebalance, a process in which assets are sold or bought to restore the original allocation.

In addition, an investor’s financial goals can change over time. For example, if you are approaching retirement, you may need to shift some assets from stocks to more stable instruments such as bonds. Likewise, if your income or liabilities change, this may require you to adjust your portfolio.

Market changes also create new investment opportunities. For example, crises can provide an opportunity to buy assets at a discount, and new industries or companies can offer promising solutions. By evaluating the market on a regular basis, you can take advantage of these opportunities.

Ultimately, regularly evaluating your investment portfolio allows you to remain flexible and prepared for changes in the market and in your personal life. This helps minimize risks and maximize the potential for your financial success.