How Rebalancing Improves Long-Term Portfolio Performance
Oct 6, 2016
By Craig L. Israelsen, PhD
Despite a longer time frame, a study of seven asset classes and a multi-asset portfolio over 46 20-year rolling periods still reveals their performance to be materially cyclical. But a “sell high and buy low” rebalancing strategy often improves a portfolio’s returns and protects it against long-term market fluctuations.