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- Joined
- Jun 25, 2005
- Messages
- 10,252
It seems to me that no matter what kind of asset allocation that one has that one would want to rebalance their portfolios occasionally.
Also, the best time to rebalance into stocks is the low of the year and the best time to rebalance out of stocks back into bonds is the high point of the year for stocks.
Of course, folks do not usually know if the day is the high point or the low point of the year unless the day is lower than the high point or higher than the lower point.
So one is left to rebalance when one's portfolio is out of balance because of normal market action.
It seems to me that lots of folks should feel their portfolio is out of balance and needs rebalancing all at about the same times. If that is true, could there be a "rebalancing meter" which showed something like number of folks in the past few days who rebalanced their portfolios because they felt they were out-of-balance?
Yes, I understand that lots of folks rebalance based on a date on the calendar, so I would expect the Rebalancing Meter to spike around 12/31 to 1/4 each year. That might serve as an internal positive control, too.
If everyone else is rebalancing, then maybe it would be a good time to rebalance, too?
Also, the best time to rebalance into stocks is the low of the year and the best time to rebalance out of stocks back into bonds is the high point of the year for stocks.
Of course, folks do not usually know if the day is the high point or the low point of the year unless the day is lower than the high point or higher than the lower point.
So one is left to rebalance when one's portfolio is out of balance because of normal market action.
It seems to me that lots of folks should feel their portfolio is out of balance and needs rebalancing all at about the same times. If that is true, could there be a "rebalancing meter" which showed something like number of folks in the past few days who rebalanced their portfolios because they felt they were out-of-balance?
Yes, I understand that lots of folks rebalance based on a date on the calendar, so I would expect the Rebalancing Meter to spike around 12/31 to 1/4 each year. That might serve as an internal positive control, too.
If everyone else is rebalancing, then maybe it would be a good time to rebalance, too?