A.I.M. Users Bulletin Board

[JoeForkeyBolo]

Rebalancing question... I'm reading Jeff Weber's "Here Are the Customer's Yachts" and he suggests rebalancing the AIM investment to the original equity-to-cash ratio on an annual basis.

Does anyone do this in practice? I have seen postings about various strategies to prohibit selling if cash gets too high, but don't recall seeing any posts on rebalancing. I had considered withdrawing excess cash to spin-off into a new investment, but the annual rebalancing seems like a better option, where excess cash is used to purchase more shares of the current investment.

I am more of the "set it and forget it" type and don't want to be making a lot of adjustments to AIM settings once it's going, but rebalancing seems like a good strategy. I thought it might not be a good strategy for leveraged ETFs, but Jeff is suggesting it for his LEAPs investing strategy, which are also highly volatile, so it must be good for leveraged ETFs too. I'll run a few scenarios on historical data to see the impact.