Portfolio Monitoring and Rebalancing Strategies

ABC Wealth Advisors manages a diversified portfolio for a high-net-worth client with a significant risk tolerance and a long investment horizon. The client's portfolio consists of 60% equities, 30% fixed income, and 10% alternative investments. Recently, the equities component has significantly outperformed, now representing 70% of the total portfolio value due to a bull market, while fixed income and alternatives have seen modest growth.

Your client requests a thorough review of the portfolio's current asset allocation with an emphasis on portfolio monitoring and rebalancing strategies. In your response, analyze how you would approach monitoring the portfolio in the context of the client's investment goals, market conditions, and potential future performance trends. Discuss the importance of timely rebalancing, and provide recommendations on the steps to take if the asset classes continue to diverge from the original target allocations.