A financial advisor is managing a $10 million client portfolio, which includes equities, fixed income, and alternative investments. Initially, the allocation is set at 60% equities, 30% fixed income, and 10% alternative investments. Over the last year, the equity market has performed exceptionally well, leading to an increase in the equity allocation to 70%, while fixed income and alternative investments remain at 25% and 5% respectively.
The client has expressed a desire to return the portfolio to its original target allocation to manage risk effectively. Discuss different rebalancing strategies that the advisor could implement to realign the portfolio with its original target allocations. Include an analysis of the economic conditions and investor behavior considerations that may affect the rebalancing process.