Blueprint: Rebalancing

How I Rebalanced Through Perilous Times

“Benign neglect, bordering on sloth, remains the hallmark of our investment process." —Warren Buffett To rebalance, or not to rebalance? When? How? We’ve reviewed the sometimes conflicting and arbitrary advice of a number of experts. We’ve found a vague consensus in favor of rebalancing, but we’ve also seen studies by respected voices questioning whether rebalancing …

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Rebalancing: Should You Bother?

In my earlier post we analyzed when to rebalance your portfolio and discussed the mechanisms for how to rebalance. Now let’s take a contrarian step back and question the entire rebalancing process. Does rebalancing actually pay off in the real world? Should you even bother? William Bernstein: “0.5%” William Bernstein is one of the few …

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When and How to Rebalance Your Portfolio

Rebalancing your portfolio means adjusting the current asset allocation, moving it closer to some previously-chosen target. In theory, rebalancing captures a portion of the profits earned by your winning investments, and reinforces your losing investments so they can shine in their own time. The majority of financial experts advocate some form of rebalancing. And virtually …

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Is Rebalancing the Achilles’ Heel of Passive Investing?

Pick up any mainstream personal finance publication and you’ll read about the benefits of passive or buy-and-hold investing — putting your assets in a few low-cost index funds or exchange traded funds (ETFs) that will capture market returns with less risk and expense over the long haul. It sounds like the easy, automated route to …

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