Comments on: Jonathan Clements’ Getting Going – Rethinking Rebalancing

By: James Beatty

James Beatty — Mon, 25 Dec 2006 22:18:52 +0000

Would like to find your “Getting Going” article from the W.S Journal and the Denver Post titled “Give Yourself a Present: Simplify Accounts”.
Thank you, James Beatty

By: Investing Intelligently

Investing Intelligently — Sat, 21 Jan 2006 10:28:28 +0000

The wrong way to rebalance

In this article, “Rebalancing Act: Why You Shouldn’t Massage Your Portfolio Every Year” at the Wall Street Jounal Online, we are basically told to rebalance if the stocks that performed well in the previous year are not going to perf…

By: JLP

JLP — Fri, 23 Dec 2005 18:37:55 +0000

Jonathan,

EXACTLY! Study after study has shown that people do EXACTLY the opposite of what they should do. Rebalancing an asset allocation strategy regardless of what the market is doing makes the most sense. It is a safety net against stupidity.

By: Jonathan

Jonathan — Fri, 23 Dec 2005 18:28:56 +0000

I think your 5% rule sounds pretty good.

I don’t like lines like “If you’re a sophisticated investor, you can look at the momentum and you might let it run a little”. How do you know when the momentum is gonna stop? If you really “know”, you’d be enormously rich. Sounds like market timing to me.