Bingo-- when an asset with a desired 25% allocation reaches 30% then it's probably time to find a way to rebalance... either by selling it for spending cash or by selling it to buy a lagging asset class.sgeeeee said:The real reason to rebalance is to maintain risk at your personal comfort level. Which indicates that you should rebalance based on your allocation varying significantly from your target allocation levels -- not based on a schedule.
I think 2008's reduction on cap gains to zero for the 10-15% income tax brackets is going to drive "rebalancing" activity through the roof.