In fact, the effect of rebalancing versus "let it ride" depends on what exactly happens with the assets in question during the investment period in question, and can easily be negative.Rebalancing doesn't appear to do much good from the studies I've seen... No one can be sure what the future will look like, but looking at the past, the reasons for the enthusiasm for rebalancing aren't clear.![:greedy]( "greedy")
It seems like these observations are ignoring, or otherwise not considering the effects of, rebalancing.
Like here is a "fun" chart from a Morningstar article on this subject from last year:
Oops. if this was, say, your late accumulation phase, let it ride beat rebalancing for many popular combinations. In this study, only Growth and Value worked out. And of course who knows over the next period.
Statistics: Posted by NiceUnparticularMan — Mon Oct 06, 2025 5:36 pm — Replies 227 — Views 19311