A Contrarian View of Portfolio Rebalancing
U.S. News columnist, Barbara Friedberg, used my commentary for her May 8th article titled, Sometimes Rebalancing Does More Harm than Good. So many financial advisors today tout portfolio rebalancing as an important element of their value propositions. Unfortunately, published academic research does not support this position and finds that rebalancing, especially in retirement, may be harmful.
"At the other end of the spectrum is the founder of index fund powerhouse Vanguard Investments John Bogle. In a CNBC interview, Bogle said he never rebalances his investments."