Yeah, I was thinking about optimal rebalancing and complexity just the other day for this portfolio. Rebalancing bands become a bit of a conundrum for non-symmetric allocations don't they? What I think I'll do is stick with Browne's 35/15 rebalancing bands by taking out my trusty calculator and figuring out what the underlying exposures are. Should only take a few extra moments when doing portfolio check ups.Fredmong wrote: ↑Mon Jun 29, 2020 11:57 am Interesting portfolio ! Have you read Meb Faber's Global Asset Allocation book ? He sure makes a case for global equity investing.
Before the virus, US equities looked so overvalued compared to global equities. Now the world is such a mess, that US equities still look like the best house in a bad neighborhood for times to come. Long-term there is some better value in global equities, but short-term US equities might outperform.
How do you handle rebalancing bands with such an allocation ? Or do you only rebalance on a fixed date ?
The factor funds that make up that 15% slice I don't think I will rebalance internally. I'll just let them ride and add money to the laggards when making contributions.
Meb Faber's book! I've been wanting to read that tome for years, but I haven't gotten around to it. I was looking for something that would push my Amazon purchase amount above the free shipping threshold... I might just do that!
www.allterraininvesting.com