Systematic Investing Group

[OldAIMGuy]

Hi Toof, Re: Rebalancing............

With a highly non correlated portfolio in a perfect world rebalancing should almost always work just right. (selling the surplus gains and buying the deepest discounts. Its when there is too much correlation in direction of change in a given year but not in the magnitude of change that inefficiencies can occur.

Maybe the Rebalance idea could include a rule to minimize the effect of "all ships rising."

It sounds like your real time example also includes further contributions. That would complicate matters. It sounds like your method does a good job of anticipating that.

Best regards,