Rebalancing
Craig Israelsen on Rebalancing
Craig Israelsen has published many important studies on asset allocation, including his 712 model which I have made great use of in my investments. He has conducted a number of studies on rebalancing. The bottom line is that it pays to rebalance every 3 months or 12 months if you do so for periods greater than 10 years. If have used such a process myself working with my financial advisor and it has worked well for me.
Here are two articles by Craig in the following link. One is a set of lecture slides and the second is an article he published in Financial Planning. Many thanks to Craig for providing permission to share.
https://tinyurl.com/IsraelsenRebalance
This contrasts with the advice provided in the AAII Journal on rebalancing. I recommend going with Craig's advice.
https://www.aaii.com/journal/article/10368-rebalancing-update-the-markets-volatility-eliminated-the-need-to-adjust-allocations
Craig Israelsen has published many important studies on asset allocation, including his 712 model which I have made great use of in my investments. He has conducted a number of studies on rebalancing. The bottom line is that it pays to rebalance every 3 months or 12 months if you do so for periods greater than 10 years. If have used such a process myself working with my financial advisor and it has worked well for me.
Here are two articles by Craig in the following link. One is a set of lecture slides and the second is an article he published in Financial Planning. Many thanks to Craig for providing permission to share.
https://tinyurl.com/IsraelsenRebalance
This contrasts with the advice provided in the AAII Journal on rebalancing. I recommend going with Craig's advice.
https://www.aaii.com/journal/article/10368-rebalancing-update-the-markets-volatility-eliminated-the-need-to-adjust-allocations
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