Portfolio design and rebalancing is both a science and an art. Understanding the science is akin to understanding the physics of why a spinning ball hooks and bends. The art is the execution of the science such as when you are actually playing soccer or golf. It is the execution and follow-through that produces the desired outcome.
Knowing that rebalancing boosts returns is useless unless you as the investor have the time, discipline, and nerve to follow through and actually strike the ball.
Rebalancing is the most helpful when it is most difficult. Rebalancing involves selling the investments that have …Read More