Steve Weinstein of Chicago's Altair Advisers LLC has found that rebalancing is sensible whether in a bull or bear market. One should avoid short-term rebalancing as transaction costs and taxes can erode the benefit.
A New York State University professor, David Smith, discovered the optimal rebalancing period to be between 39 and 44 months. Under a year is negatively impacted by the resultant market and tax costs.
Rebalancing Your Portfolio
Steve Weinstein of Chicago's Altair Advisers LLC has found that rebalancing is sensible whether in a bull or bear market. One should avoid short-term rebalancing as transaction costs and taxes can erode the benefit.
A New York State University professor, David Smith, discovered the optimal rebalancing period to be between 39 and 44 months. Under a year is negatively impacted by the resultant market and tax costs.