This morning Bill Bernstein, a former neurologist who has since become a financial guru and founded EfficientFrontier.com, gave a free-form talk about his investment approach.
Various rebalancing tactics were examined in order to take advantage of differences in return that exist among asset classes.
"I believe threshold rebalancing is better than calendar rebalancing - but I can't prove it," he
stated, noting that wide thresholds (1-2 years) were better than narrow (3-4 times per year), and that calendar rebalancing should occur no more frequently than once annually.
This gives your winners (and losers) a chance to run and receive the . . . → Read More: Morningstar 2008: Accentuate the cognitive
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behavioral finance, Bill Bernstein, china, Efficient frontier, rebalancing