Money For The Rest Of Us

Why bother rebalancing your investment portfolio and what is the best method for doing so.Topics covered include:How a target asset allocation can get out of line if a portfolio is not rebalancedWhat is positive skewness and why it matters to portfolio investingWhat is volatility drag and how it can lead to lower end of period wealthWhat are the costs of rebalancingWhich rebalancing method if any has been the most effectiveThanks to Felix Gray glasses and Mint Mobile for sponsoring the episode.For more information on this episode click here.Show NotesLong-Horizon Stock Returns Are Positively Skewed by Adam Farago and Erik HjalmarssonPositively Skewed Distribution—Corporate Finance InstituteProspect Theory and Stock Market Anomalies by Nicholas Barberis, Lawrence J. Jin, and Baolian WangStrategic Rebalancing by Sandy Rattray, Nicolas Granger, Campbell R. Harvey, and Otto Van HemertPortfolio Rebalancing: Tradeoffs and Decisions by Xing Hong and Philipp Meyer-BraunsDiversification Returns, Rebalancing Retur