Comments on: Opportunistic Rebalancing: A Portfolio Rebalancing Strategy That Times the Market http://www.thesunsfinancialdiary.com/investing/opportunistic-rebalancing-a-portfolio-rebalancing-strategy-that-times-the-market/ Sat, 21 Nov 2009 20:14:32 -0800 http://wordpress.org/?v=2.8.6 hourly 1 By: Financial planning tips and Roth IRA conversion planning for those in their 30s and 40s » Chance Flavors of the Week - Oscars Edition http://www.thesunsfinancialdiary.com/investing/opportunistic-rebalancing-a-portfolio-rebalancing-strategy-that-times-the-market/comment-page-1/#comment-40955 Financial planning tips and Roth IRA conversion planning for those in their 30s and 40s » Chance Flavors of the Week - Oscars Edition Mon, 25 Feb 2008 05:11:04 +0000 http://www.thesunsfinancialdiary.com/investing/opportunistic-rebalancing-a-portfolio-rebalancing-strategy-that-times-the-market/#comment-40955 [...] Opportunistic Re-balancing: A portfolio re-balancing strategy that times the market - I think portfolio re-balancing is second only to diversification in importance. I like the idea of opportunistic re-balancing. Some of the snags with this system (mentioned in the article) are easily overcome by working with a trusted advisor… [...] [...] Opportunistic Re-balancing: A portfolio re-balancing strategy that times the market – I think portfolio re-balancing is second only to diversification in importance. I like the idea of opportunistic re-balancing. Some of the snags with this system (mentioned in the article) are easily overcome by working with a trusted advisor… [...]

]]> By: Sun http://www.thesunsfinancialdiary.com/investing/opportunistic-rebalancing-a-portfolio-rebalancing-strategy-that-times-the-market/comment-page-1/#comment-40574 Sun Thu, 21 Feb 2008 05:41:09 +0000 http://www.thesunsfinancialdiary.com/investing/opportunistic-rebalancing-a-portfolio-rebalancing-strategy-that-times-the-market/#comment-40574 Jesse: One of the important features of the suggested method is the short "looking" period, that's the interval to review the portfolio. I think the method only works if rebalancing is done very often so that the rises and falls of the market can be captured, instead of just once or twice a year as we usually do. If I only rebalance a couple of times a year, when to do it probably won't make too much difference. Jesse: One of the important features of the suggested method is the short “looking” period, that’s the interval to review the portfolio. I think the method only works if rebalancing is done very often so that the rises and falls of the market can be captured, instead of just once or twice a year as we usually do. If I only rebalance a couple of times a year, when to do it probably won’t make too much difference.

]]> By: Jesse http://www.thesunsfinancialdiary.com/investing/opportunistic-rebalancing-a-portfolio-rebalancing-strategy-that-times-the-market/comment-page-1/#comment-40473 Jesse Tue, 19 Feb 2008 18:45:52 +0000 http://www.thesunsfinancialdiary.com/investing/opportunistic-rebalancing-a-portfolio-rebalancing-strategy-that-times-the-market/#comment-40473 I have to say I think that rebalancing to time the market has many more drawbacks than advantages: 1) There is a natural rise and fall to the market, if you are in it for the long haul, these rises and falls will average out in the end. 2) Timing the market can be a disaster (we all know how) 3) As you pointed out, the trading costs could become very burdensome. 4) Also as you pointed out, you can't really do this with mutual funds as most of them have a minimum hold time 5) Another reason it can't be done with mutual funds is that many have front end loads: thus you are losing more up front than you gain in the long run. just my 2 cents ;) I have to say I think that rebalancing to time the market has many more drawbacks than advantages:
1) There is a natural rise and fall to the market, if you are in it for the long haul, these rises and falls will average out in the end.
2) Timing the market can be a disaster (we all know how)
3) As you pointed out, the trading costs could become very burdensome.
4) Also as you pointed out, you can’t really do this with mutual funds as most of them have a minimum hold time
5) Another reason it can’t be done with mutual funds is that many have front end loads: thus you are losing more up front than you gain in the long run.

just my 2 cents ;)

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