What is your rebalancing policy?

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fredflinstone
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What is your rebalancing policy?

Post by fredflinstone »

For those of you have a written IPS...

Do you rebalance once a year? Twice a year? Do you specify a particular date to rebalance? Do you rebalance whenever you fee like it? Do you sometimes do "backdoor" market timing by waiting longer than you should to rebalance?

I'm revising my IPS and am thinking of saying something like this:

"Rebalancing only allowed in the last two weeks of December, the first two weeks of January, and the first two weeks of July." Too loosey goosey?
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ObliviousInvestor
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Post by ObliviousInvestor »

I rebalance whenever I make contributions--the end result being that the actual timing is entirely haphazard, as our highly variable income makes contribution timing unpredictable.

Is that ideal for purposes of maximizing any potential "rebalancing bonus"? Probably not. Does that bother me? Nope.
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Re: What is your rebalancing policy?

Post by YDNAL »

fredflinstone wrote:For those of you have a written IPS...

Do you rebalance once a year? Twice a year? Do you specify a particular date to rebalance? Do you rebalance whenever you fee like it? Do you sometimes do "backdoor" market timing by waiting longer than you should to rebalance?
Risk control.

If Fixed Income is +/- 5% from target, I rebalance - the calendar has no bearing, the Market does!
Landy | Be yourself, everyone else is already taken -- Oscar Wilde
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HomerJ
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Re: What is your rebalancing policy?

Post by HomerJ »

YDNAL wrote:
fredflinstone wrote:For those of you have a written IPS...

Do you rebalance once a year? Twice a year? Do you specify a particular date to rebalance? Do you rebalance whenever you fee like it? Do you sometimes do "backdoor" market timing by waiting longer than you should to rebalance?
Risk control.

If Fixed Income is +/- 5% from target, I rebalance - the calendar has no bearing, the Market does!
Yeah I don't rebalance on any fixed date... I rebalance according to what the market does... And usually that means changing my contributions to 100% stocks or 100% bonds for a while
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Post by staythecourse »

I rebalance with new money every month, but if I couldn't do that I would use rebalancing bands of 5 or 10%. P

icking random dates I do not believe serves the purposes of rebalancing (to reduce risk back to the original asset allocation). The market doesn't care if it is July, Dec., or any other random month.

Good luck.
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Post by BTDT »

I rebalance/adjust as I deposit additional funds, or +-5% deviation, whichever comes first
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Post by SamB »

I rebalance once per year because I have too much free time. It does not make much difference, return or risk wise. If there was no tax law I would pick one mutual find and let the mutual fund manager do it.

Sam
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Post by Chushingura »

I have mine set up so I only rebalance when one AA category is more than 5% off my target AA. Since I've been tracking my portfolio (Sep-10) I haven't had to rebalance yet.
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Re: What is your rebalancing policy?

Post by YDNAL »

SamB wrote:I rebalance once per year because I have too much free time. It does not make much difference, return or risk wise. If there was no tax law I would pick one mutual find and let the mutual fund manager do it.

Sam
Shouldn't you rebalance daily with available free time? :D

I disagree that rebalancing doesn't make much difference "return wise" or "risk wise." I does both.
  • During 2008-09, Equity-risk lowered for most (all?) portfolios over a 14 month period.
  • Those who rebalanced through 2010 got nicely compensated. Those who didn't suffered the consequences.
Tota US Market (VTSMX)
$34.86 01/02/2008
$16.43 03/09/2009 -52.87%
$31.63 12/29/2010 +92.51%

Total International (VGTSX)
$19.93 05/16/2008
$7.97 03/09/2009 -60.02%
$16.15 11/04/2010 +102.63%

Total Bond (VBMFX)
$10.37 01/22/2008
$9.96 03/10/2009 -3.95%
$10.94 11/04/2010 +9.84%
Landy | Be yourself, everyone else is already taken -- Oscar Wilde
FafnerMorell
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Post by FafnerMorell »

Each bimonthly deposit does a little rebalancing, and once a year around Feb I do a big rebalance as part of doinig a more indepth financial review. Also, if things get more than 5% out of whack I'll do a rebalance (which happened in 2008/09, but that's about it that I can recall).
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Sbashore
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Post by Sbashore »

I rebalance whenever an asset class strays more than 20% of its original allocation or if my overall equity/fixed balance differs more than 5%.
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Post by Tyrobi »

Rebalance will be done during monthly contributions with net cash inflows to be used to meet the target allocation.

We will not let market timing strategy, investor sentiment, and Wall Street noise influence our allocation.
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Post by House Blend »

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Post by trico »

At the end of every quarter. Simple :roll:
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Post by Sidney »

equity = 40% +/- 5pts. Exception - I re-balanced last fall inside the band because I gave some stocks to the Charitable Gift account which is bonds. My tax rate was going to be high so it was a tax-timing event.
I always wanted to be a procrastinator.
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Post by livesoft »

As posted in another thread:
Asset allocation is 31% US, 31% foreign, 31% bonds, 7% commercial real estate.

Rebalancing bands are set to 2% of total portfolio when the market is doing anything but having a really bad day, Asset allocation is changed on days when the market is having a really bad day to have 2% more in equities (64% instead of 62%) and 2% less in fixed income (29% instead of 31%). This is written in the investment policy statement. This forces rebalancing on really bad days.
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Default User BR
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Post by Default User BR »

5/25 rebalancing boundaries as described by Larry Swedroe in his books. The spreadsheet takes care of notifying me if any class or subclass is out of bounds. Otherwise, new money is directed towards laggards. 401(k) contributions have been 100% fixed-income for some time to keep up with the stock market.



Brian
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Post by archbish99 »

I have a slightly more complex system because of my 401k setup.... I have the 401k's core funds (a few Vanguard, mostly not) which are required to be at least 5% of my balance. The other up to 95% are in Vanguard ETFs (with a commission to buy them). I rebalance in two ways:
  • - New money goes into the core funds, allocated into the laggard asset classes; they're not the lowest ER, but they get the money in the market quickly.
    - Once annually (December), I'll sell the core funds down to the minimum 5% and make a bulk purchase of the ETFs with the year's contributions and earnings, rebalancing between classes in the process.
    - If any asset class gets more than 5% out of whack, I'll do the sell-core-transfer-buy-ETF two-step out of season.
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Post by Aptenodytes »

I do what Landy and staythecourse do. New contributions achieve almost all that´s needed.
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Post by retiredjg »

In withdrawal - no longer contributing. I use 5% bands (plus or minus) for stock to bond ratio and I usually don't take it all the way back to target, but back into the band.

The rest pretty much stays in line and I don't have to do anything, although I do look at it every once in awhile.
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Post by LH »

in theory once a year.

In practical reality, whenever i get the money, if it throws it out of whack, I rebalance, taking into consideration costs like ETF fees, or Vanguards fees for buying selling emerging for example.
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Re: What is your rebalancing policy?

Post by SamB »

YDNAL wrote:
SamB wrote:I rebalance once per year because I have too much free time. It does not make much difference, return or risk wise. If there was no tax law I would pick one mutual find and let the mutual fund manager do it.

Sam
Shouldn't you rebalance daily with available free time? :D
Well, if you want to get carried away here is Bernstein's little study, http://www.efficientfrontier.com/ef/996/rebal.htm

However, if you are human, live on planet earth, etc., there are so many other things (risks) that will interfere with this back testing exercise to render it useless. Do it for thirty years, and if I am still alive tell me how it works out.

Sam
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Post by ofcmetz »

ObliviousInvestor wrote:I rebalance whenever I make contributions--the end result being that the actual timing is entirely haphazard, as our highly variable income makes contribution timing unpredictable.

Is that ideal for purposes of maximizing any potential "rebalancing bonus"? Probably not. Does that bother me? Nope.
My rebalancing strategy is very similar to this ^. :D Incomes variable, but contributions are a little more consistent.

In the case of a major crash, I might actually have to sell a few bonds to rebalance though and my IP says to consider that around my birthday.
Never underestimate the power of the force of low cost index funds.
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Post by marnold1974 »

Default User BR wrote:5/25 rebalancing boundaries as described by Larry Swedroe in his books. The spreadsheet takes care of notifying me if any class or subclass is out of bounds.
+1.

I was very excited when I got my spreadsheet set up earlier this year with the conditional formatting working so the cells turn red when the 5/25 rules are met and I should rebalance.

It's the little things.
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Post by shipwreck »

I rebalance every quarter ..
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Post by gorion83 »

I decided to rebalance everytime the difference is big enough to allow me to trade without having excess costs.
Usually that equals about a 5% (of total portfolio) move.

Also I prefer to rebalance with new contributions.
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Re: What is your rebalancing policy?

Post by YDNAL »

SamB wrote:
YDNAL wrote:
SamB wrote:I rebalance once per year because I have too much free time. It does not make much difference, return or risk wise. If there was no tax law I would pick one mutual find and let the mutual fund manager do it.

Sam
Shouldn't you rebalance daily with available free time? :D
Well, if you want to get carried away here is Bernstein's little study, http://www.efficientfrontier.com/ef/996/rebal.htm

However, if you are human, live on planet earth, etc., there are so many other things (risks) that will interfere with this back testing exercise to render it useless. Do it for thirty years, and if I am still alive tell me how it works out.

Sam
Well, that was the joke of the post!.. and you omitted the rest (below).

If you are "human, live on planet Earth, etc." this is the serious part of the post!
YDNAL wrote:I disagree that rebalancing doesn't make much difference "return wise" or "risk wise." I does both.
  • During 2008-09, Equity-risk lowered for most (all?) portfolios over a 14 month period.
  • Those who rebalanced through 2010 got nicely compensated. Those who didn't suffered the consequences.
Total US Market (VTSMX)
$34.86 01/02/2008
$16.43 03/09/2009 -52.87%
$31.63 12/29/2010 +92.51%

Total International (VGTSX)
$19.93 05/16/2008
$7.97 03/09/2009 -60.02%
$16.15 11/04/2010 +102.63%

Total Bond (VBMFX)
$10.37 01/22/2008
$9.96 03/10/2009 -3.95%
$10.94 11/04/2010 +9.84%
Landy | Be yourself, everyone else is already taken -- Oscar Wilde
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wander
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Post by wander »

I re-balance at least once a year and twice a month at most (whenever is necessary).
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Post by Dandy »

Rebalance once a year on birthday (February) to target allocation. Review again in July to adjust any individual investment that is out of it's band to the edge of it's band.

e.g. If Total Stock target allocation is 20% and the band is + or - 3% and actual investment is equal to 25% - February rebalance to 20% in July rebalance to 23% (edge of band). Rather do two minor adjustments than one large one.

Do I "cheat"? Yes, when the equity market has 3 or 4 bad days and I have extra cash I throw some money into equities - but it is more redeploying cash than re balancing. I would be buying now if I had excess cash. I suppose it is market timing but when I know I am going to buy equities in the near future why not buy after a few down days. If my allocation is in good shape than I stand pat.
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Re: What is your rebalancing policy?

Post by gerntz »

YDNAL wrote:
SamB wrote:I rebalance once per year because I have too much free time. It does not make much difference, return or risk wise. If there was no tax law I would pick one mutual find and let the mutual fund manager do it.

Sam
Shouldn't you rebalance daily with available free time? :D

I disagree that rebalancing doesn't make much difference "return wise" or "risk wise." I does both.
  • During 2008-09, Equity-risk lowered for most (all?) portfolios over a 14 month period.
  • Those who rebalanced through 2010 got nicely compensated. Those who didn't suffered the consequences.
Tota US Market (VTSMX)
$34.86 01/02/2008
$16.43 03/09/2009 -52.87%
$31.63 12/29/2010 +92.51%

Total International (VGTSX)
$19.93 05/16/2008
$7.97 03/09/2009 -60.02%
$16.15 11/04/2010 +102.63%

Total Bond (VBMFX)
$10.37 01/22/2008
$9.96 03/10/2009 -3.95%
$10.94 11/04/2010 +9.84%
So when would one have rebalanced in all this and how much? At each 5% change? Every 6 months? Only at the bottom becaude you knew it was the bottom? I mean if you're putting in when dropping & pulling out when rising, where do you wind up vs. doing nothing?
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Post by amdmaxx »

livesoft
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Re: What is your rebalancing policy?

Post by livesoft »

gerntz wrote:So when would one have rebalanced in all this and how much? At each 5% change? Every 6 months? Only at the bottom becaude you knew it was the bottom? I mean if you're putting in when dropping & pulling out when rising, where do you wind up vs. doing nothing?
So even though many folks roll their eyes when I mention an RBD, I think it is helpful to have a very mechanical method on when to time one's rebalancing. The RBD strategy helps with that.

The reality is that most of the rebalancing studies do not come close to duplicating the actual rebalancing methods that some folks use, so they haven't given any hints of the best way to rebalance. For example, rebalancing on Dec 31st or Jan 2nd. What a joke!

I would propose that the best times to rebalance each year are perhaps on the market's lowest day of the year and on the market's highest day of the year. The trouble is to know those days which is almost impossible. At least with the RBD strategy you might get lucky and rebalance on or near the low day. If you do not believe me, check out this graph: http://www.bogleheads.org/forum/viewtop ... 591#825591 You may also wish to read this thread while looking at a graph for 2011: http://www.bogleheads.org/forum/viewtopic.php?t=70844
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Post by KlangFool »

marnold1974 wrote:
Default User BR wrote:5/25 rebalancing boundaries as described by Larry Swedroe in his books. The spreadsheet takes care of notifying me if any class or subclass is out of bounds.
+1.

I was very excited when I got my spreadsheet set up earlier this year with the conditional formatting working so the cells turn red when the 5/25 rules are met and I should rebalance.

It's the little things.
Hi,

Same here plus I re-balance once a year on the first weekend of August. For this year, it will be August 8 coming up.

KlangFool
gerntz
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Post by gerntz »

So is the difference shown for Nov. 2010 statistically different than not rebalancing; i.e., is there a real bonus? As recently as early 2009 from 2001 there was no difference as I read the graph. Thanks.
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Post by dratkinson »

marnold1974 wrote:
Default User BR wrote:5/25 rebalancing boundaries as described by Larry Swedroe in his books. The spreadsheet takes care of notifying me if any class or subclass is out of bounds.
+1.

I was very excited when I got my spreadsheet set up earlier this year with the conditional formatting working so the cells turn red when the 5/25 rules are met and I should rebalance.

It's the little things.
+1.

With fund totals in color---set by conditional formatting. Colors mean:
$1000 (Too low by 5% portfolio or 25% asset, buy more.)
$1000 (Too high by 5% portfolio or 25% asset, stop buying or sell.)
$1000 (Acceptable range.)
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Post by BobSail »

I stick with the recommendation I've heard here and read in several of the reference books.

+/- 5% of the target portfolio allocation or +/- 25% absolute deviation of the asset

Also, change directed allocations of 401k into most underperforming asset on a monthly basis.

Like dratkinson, I've set up excel spreadsheet with conditional formatting just to keep me busy and away from twiddling with my assets!
Robert | 50% Fixed Income/30% US Equity/20% Int'l Equity
livesoft
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Post by livesoft »

dratkinson wrote: With fund totals in color---set by conditional formatting. Colors mean:
$1000 (Too low by 5% portfolio or 25% asset, buy more.)
$1000 (Too high by 5% portfolio or 25% asset, stop buying or sell.)
$1000 (Acceptable range.)
But if you don't look on a day like March 16, 2011, do you miss a color change?
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Post by BobSail »

Follow-up to last post if interested. Here's what my actual allocations looked like over the last 7 months using the +/- 5% deviation from target allocation, +/- 25% deviation from target value and directing new 401k money into lowest performing asset.

You can see that apart from getting my target allocations on track late last year with new 401k money in, this leads to very little need to rebalance.

Major asset classes
Image

Deviation from target allocation percent
Image

Deviation from absolute target
Image
Robert | 50% Fixed Income/30% US Equity/20% Int'l Equity
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Target date fund and they do the rebalancing for me

Post by rocket »

I have Target date fund and they do the rebalancing for me.
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Re: What is your rebalancing policy?

Post by YDNAL »

gerntz wrote:
YDNAL wrote:
SamB wrote:I rebalance once per year because I have too much free time. It does not make much difference, return or risk wise. If there was no tax law I would pick one mutual find and let the mutual fund manager do it.

Sam
Shouldn't you rebalance daily with available free time? :D

I disagree that rebalancing doesn't make much difference "return wise" or "risk wise." I does both.
  • During 2008-09, Equity-risk lowered for most (all?) portfolios over a 14 month period.
  • Those who rebalanced through 2010 got nicely compensated. Those who didn't suffered the consequences.
Total US Market (VTSMX)
$34.86 01/02/2008
$16.43 03/09/2009 -52.87%
$31.63 12/29/2010 +92.51%

Total International (VGTSX)
$19.93 05/16/2008
$7.97 03/09/2009 -60.02%
$16.15 11/04/2010 +102.63%

Total Bond (VBMFX)
$10.37 01/22/2008
$9.96 03/10/2009 -3.95%
$10.94 11/04/2010 +9.84%
So when would one have rebalanced in all this and how much? At each 5% change? Every 6 months? Only at the bottom becaude you knew it was the bottom?
I rebalance to control risk and when Fixed Income is +/- 5% off target. Please see my first post in the thread.

As such, as Equity risk decreases from January 2008-March 2009, Fixed Income % went up regularly more than 5% and you rebalance. As Equity risk increases from there through 2010, Fixed Income % went down regularly more than 5% and you rebalance.
gerntz wrote:I mean if you're putting in when dropping & pulling out when rising, where do you wind up vs. doing nothing?
Truthfully, you should be able to answer that last question yourself.
Landy | Be yourself, everyone else is already taken -- Oscar Wilde
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Re: What is your rebalancing policy?

Post by leonidas »

If Fixed Income is +/- 5% from target, I rebalance - the calendar has no bearing, the Market does![/quote]

I agree with this 100 percent!
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Post by dratkinson »

livesoft wrote:
dratkinson wrote: With fund totals in color---set by conditional formatting. Colors mean:
$1000 (Too low by 5% portfolio or 25% asset, buy more.)
$1000 (Too high by 5% portfolio or 25% asset, stop buying or sell.)
$1000 (Acceptable range.)
But if you don't look on a day like March 16, 2011, do you miss a color change?
Yes, if I don't look then I don't see the color changes.

I also will not see the correct color changes if I don't update the number of shared owned or the NAV (garbage in, garbage out).

I manually update shares owned the first of each month (after distributions).

The NAV is automatically updated by Gummy's Yahoo macro (a simple button click).

I generally update the NAV after markets close, which coincidentally is about how long it takes me to get through the daily postings here. :)
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Post by DaleMaley »

I rebalance annually in December. I only monitor my over-all stock-to-bond ratio with respects to rebalancing. If my actuall AA strays more than +/- 5% from 60:40, I rebalance. I don't worry too much about the allocations of the sub-groups that make up the 60:40 ratio (e.g. my 5% allocation to REITsin VGSIX just floats).

Also annually in December I do the following:

-review the past year's financial results against plan
-update financial plan for next year
-review my IPS
-review and update Letter of Instruction to Heirs
-review and decide if estate planning documents need updated or not in coming year
Most investors, both institutional and individual, will find that the best way to own common stocks is through an index fund that charges minimal fees. – Warren Buffett
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Re: What is your rebalancing policy?

Post by tadamsmar »

fredflinstone wrote:For those of you have a written IPS...

Do you rebalance once a year? Twice a year? Do you specify a particular date to rebalance? Do you rebalance whenever you fee like it? Do you sometimes do "backdoor" market timing by waiting longer than you should to rebalance?

I'm revising my IPS and am thinking of saying something like this:

"Rebalancing only allowed in the last two weeks of December, the first two weeks of January, and the first two weeks of July." Too loosey goosey?
1. There is an argument that reblancing more than 1 per year tends to be a loser due to short term momentum.

2. Anything that does not use a fixed calendar date is too loosey goosey in the sense that it implies some belief in timing, so it's not logical. If you truely believe in timing, then you should be timing, you should not merely be rebalancing.
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Re: What is your rebalancing policy?

Post by Aptenodytes »

tadamsmar wrote:
1. There is an argument that reblancing more than 1 per year tends to be a loser due to short term momentum.

2. Anything that does not use a fixed calendar date is too loosey goosey in the sense that it implies some belief in timing, so it's not logical. If you truely believe in timing, then you should be timing, you should not merely be rebalancing.
This doesn't ring true for me. The research I've seen suggests that transaction costs do make a big difference -- if you have to pay commissions on each trade then rebalancing too frequently can erode the gains you'd otherwise get from it. But otherwise letting percentage thresholds trigger the rebalancing is definitely better than a fixed calendar target. With thresholds set around something like the 5/25 bands many people here use you don't need to worry about losing out on momentum. And don't forget that momentum operates uphill and downhill.

Rebalancing, as used by people here, is not market timing. It is simply implementing your AA. Market timing is when you deviate from your AA because you think at the time it will improve your returns. Ironically, that's actually the logic behind your deliberately putting off rebalancing because you want to get gains from momentum. Say your equities go up 15% in the first 6 months of the year. You are significantly off your AA and if it is a good AA you should rebalance; otherwise your risk is higher than what you've already decided is optimal. But you put off rebalancing because you think stocks are headed even higher yet. If that isn't market timing I don't know what is.

Say you are driving on a deserted highway at night, and determine that you can probably drive safely at 75 MPH, so that's what you start doing. Then after a while you realize the speedometer has crept up to 85 because you haven't been looking at it. Do you keep cruising at 85 because you haven't hit anything or run into a cop yet? Or do you go back to your plan and slow down to 75? The rebalancers among us would go back to 75 as soon as we see we've drifted to high.

Landy's posts in this thread make the most sense and are most consistent with the empirical record, as I read it.
scrabbler1
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Post by scrabbler1 »

I use a 5% deviation from my AA to trigger at least a close look at a possible mild rebalancing. Because I have different investment objectives in my IRA versus my taxable account, my 5% rule is more applicable to my IRA which will trigger no tax consequences. I need a bigger AA change in my taxable account to trigger a move there. Also, it depends a little on which direction the move will be, whether it is stock->bond or bond->stock.

I was fortunate enough to have done a small rebalancing from stock -> bond about a week ago just when the market was at its high point (DJIA was arount 12.7k).
linebanking
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Post by linebanking »

Does anyone have this same graph for the 5% and 10% band rebalancing rule?
AA 50/50 stocks/bonds;AA 40/40/20 Stocks/Bonds/House Equity; AA 40/40/20/{-16} Stocks/Bonds/House Equity/ {Mortgage}
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grabiner
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I rebalance in three ways

Post by grabiner »

Every January when I make my IRA contribution, I do a full rebalance (or as full as I can make it; I won't sell taxable stock for a capital gain unless I am outside a rebalancing band and don't expect normal contributions to fix it).

Whenever I have new money to invest, I check my current allocation, find the most underweighted category which is suitable for my taxable account, and add the money there. I am currently slightly under my target weight in international small-cap, so my next investment will go into VSS.

And if I find that I am outside a rebalancing band, I will correct that (again, trying to minimize tax costs). In October 2008, I had 14% bonds rather than my 10% target, so I sold some bonds in a retirement account to buy more stock.
Wiki David Grabiner
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tadamsmar
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Re: What is your rebalancing policy?

Post by tadamsmar »

Aptenodytes wrote:
tadamsmar wrote:
1. There is an argument that reblancing more than 1 per year tends to be a loser due to short term momentum.

2. Anything that does not use a fixed calendar date is too loosey goosey in the sense that it implies some belief in timing, so it's not logical. If you truely believe in timing, then you should be timing, you should not merely be rebalancing.
This doesn't ring true for me. The research I've seen suggests that transaction costs do make a big difference -- if you have to pay commissions on each trade then rebalancing too frequently can erode the gains you'd otherwise get from it. But otherwise letting percentage thresholds trigger the rebalancing is definitely better than a fixed calendar target. With thresholds set around something like the 5/25 bands many people here use you don't need to worry about losing out on momentum. And don't forget that momentum operates uphill and downhill.

Rebalancing, as used by people here, is not market timing. It is simply implementing your AA. Market timing is when you deviate from your AA because you think at the time it will improve your returns. Ironically, that's actually the logic behind your deliberately putting off rebalancing because you want to get gains from momentum. Say your equities go up 15% in the first 6 months of the year. You are significantly off your AA and if it is a good AA you should rebalance; otherwise your risk is higher than what you've already decided is optimal. But you put off rebalancing because you think stocks are headed even higher yet. If that isn't market timing I don't know what is.

Say you are driving on a deserted highway at night, and determine that you can probably drive safely at 75 MPH, so that's what you start doing. Then after a while you realize the speedometer has crept up to 85 because you haven't been looking at it. Do you keep cruising at 85 because you haven't hit anything or run into a cop yet? Or do you go back to your plan and slow down to 75? The rebalancers among us would go back to 75 as soon as we see we've drifted to high.

Landy's posts in this thread make the most sense and are most consistent with the empirical record, as I read it.
I was responding to the rebalancing plan in the OP that allows a 1 month window for the date of rebalancing. I was assuming that was for market timing.

The existence of short-term momentum does not imply that market timing works if it's not exploitable due to fees.
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modal
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Post by modal »

My general rebalance guide is an excel spreadsheet that shows me how far off I am from my predefined asset mix.

I have been rebalancing in March/April or anytime I decide to make a Roth or Taxable investment.
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