OK January is well underway. Well sort of. Things seem to be off to a slow start - everyone taking their time getting back up to speed. So be it.

For me it's time to take a critical look at the old portfolio and do the old rebalancing thing. You know, buy more of the stuff that's down and sell off some of the stuff that's up.

The theory goes that the stuff that's hot is probably too hot, so it's a good idea to sell some and lock in some profits. The laggards (they're still good equities, right?) are just taking a breather or working through some short term issues. They'll be back, so buy more of it now while the prices are good.

I do this for the first time each year in January. Is that a big deal? I don't know, maybe. Some say to do it in December, but I don't understand that thinking. If everyone else is doing this in December then I say don't. I just like to be different that way.

Not only that but I like to have all my gains and losses fairly well balanced out ahead of the December spruce up your portfolio season. December is just another buying opportunity.

Rebalancing in January gives me 11 months' head start on managing my year's capital gains.