by CI Staff
Comment Posted to “Best Practices for Portfolio Rebalancing,” by Francis M. Kinniry Jr. et al, May AAII Journal
If, as the authors admit, risk-adjusted returns are not meaningfully different regardless of rebalancing frequency, one has to question the basic premise of rebalancing.
Sure, rebalancing has a certain intuitive appeal, but when average annual returns are shown to be highest for those portfolios that were never rebalanced (Table 1), a discussion of that finding with associated standard deviation and cost savings considerations would have made for a far mor
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