Re: Time to Rebalance Portfolio
I have read that mutual fund managers often buy and sell like crazy
I agree that rebalancing more often than annually can be counter-productive and can take the wind out of the sails of any short rally within your portfolio. My suggestion is to forget about what MF managers do. 75% of them can not even figure out how to beat the benchmark that they are compared to!
Establish your own financial plan that reflects your needs and stay the course on that plan. Remember that MF managers have a much different goal than do you or even the investors in their specific fund. They strive to get short-term gains so that their marketing literature and advertising campaign can indicate that they were up "22.65% or so" for the quarter.
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