Episode 225: Rebalancing Basics, Cowbell in the U.K. And Poking At The New Deathstar
Risk Parity Radio
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Rebalancing a Portfolio
Rebalancing is resetting a portfolio back to what it was when you originally set it up. Studies have shown that rebalancing a portfolio like that more than about once a year doesn't really add anything to it. The optimal rebalancing rule for any portfolio is going to vary and change based on what sort of things you have in the portfolio. But if you're just looking for a basic default rule doing it once a year is never a bad option."
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