https://seekingalpha.com/article/4252544-everything-wanted-know-rebalancing-afraid-askEverything You Wanted To Know About Rebalancing (But Were Too Afraid To Ask)
Apr. 3, 2019 8:08 AM ETBND, IJR, SPY...13 Comments18 Likes
Summary
The majority of investors rebalance their portfolios. Rebalancing is often part of the value proposition to help financial advisors to justify their fees.
Relatively few people seem to have studied the ramifications of rebalancing, however, or the proper way to maximize risk-adjusted return.
There is a right way to rebalance and a wrong way to rebalance. With proper technique, rebalancing adds value. Do it wrong, and it subtracts.
Some best practices for rebalancing, as well as understanding concentration risk, which is the main reason investors rebalance.
