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The AAII Journal

April 2013 Issue

Editor's Note »

Editor's Note

thumbnail for Editor's Note I now have 25 years of data on portfolio rebalancing. The lesson from the data is very clear: rebalancing lowers portfolio volatility. This benefit occurs regardless of whether you keep your money in your portfolio or you make withdrawals each year. You can see the numbers and the methodology for rebalancing here.

 

Portfolio Strategies »

Portfolio Rebalancing: Observations From 25 Years of Data

thumbnail for Portfolio Rebalancing: Observations From 25 Years of Data Using a rebalancing strategy over the past 25 years would have boosted returns, lowered volatility and kept the balance in one asset class from being drained.

 

Portfolio Strategies »

Why We Don’t Rebalance

thumbnail for Why We Don’t Rebalance A combination of risk-averse and risk-seeking behaviors as well as fears about backlash stop investors from rebalancing.

 

Portfolio Strategies »

A Pseudo-Life Annuity: Is There a Downside?

thumbnail for A Pseudo-Life Annuity: Is There a Downside? U.S. government STRIPS provide guaranteed income and, since they are purchased at steep discounts, will appreciate by the time of death.

 

Stock Strategies »

The Liquidity Style: Finding Bargains by Seeking Less Popular Stocks

Stocks that are less liquid, meaning their shares trade with less volume, offer the potential for higher returns.

 

Retired Investor »

A Key to a Lasting Retirement Portfolio

Staying within or below a 4% to 5% withdrawal rate (adjusted annually for inflation) will decrease your risk of outliving your retirement savings.

 

Investor Professor »

How Liquidity Impacts the Attractiveness of an Asset

thumbnail for How Liquidity Impacts the Attractiveness of an Asset Greater levels of liquidity attract more buyers and sellers, while lower levels of liquidity deter some would-be investors.

 

Stock Screens »

Combining Quality Growth With Value and Momentum

thumbnail for Combining Quality Growth With Value and Momentum Quality growth, or a high ratio of gross profit to total assets, is a better predictor of future success and works well when combined with value and momentum indicators.

 

AAII Model Portfolios »

A Look at the Model Shadow Stock Portfolio’s True Risk

thumbnail for A Look at the Model Shadow Stock Portfolio’s True Risk Measured by the chance of a long-term loss, the Model Shadow Stock Portfolio is less risky than the S&P 500 index.

 
Departments
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Cover Article »

Portfolio Rebalancing: Observations From 25 Years of Data

Using a rebalancing strategy over the past 25 years would have boosted returns, lowered volatility and kept the balance in one asset class from being drained.


Topic Archive

Below you can view the complete archives of each AAII Journal topic.