Investors often ask, “When should I rebalance my portfolio?”
Most are looking for a perfect time of year.Others want to know if they should rebalance once a year, once a quarter, or during every full moon.
Vanguard back-tested a portfolio that was split 60/40 between U.S. stocks and U.S. bonds between 1926 and 2009.
They didn’t bother with lunar cycles.
But they did test four scenarios: rebalancing the portfolio monthly, quarterly, annually and never.
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