This week, my quarterly Strategy letter goes out to all Ritholtz Wealth Management clients. In it, I explain a bit about how we think about rebalancing.
A small excerpt below:
Investing is an exercise in embracing uncertainty, not precise calibration. When we find something that can be applied in a practical and cost-efficient manner, such as our unique rebalancing schedule, we implement it for you.
In general, we are not big proponents of seasonality, but the data shows a slight edge based on decades of monthly market performance. In the asset management business, slight edges can compound and add up to quite a bit.
The consistent application of a good investing process takes slight edges and compounds them over time. Combined with low costs, intelligent allocation and tax-aware behavior, these slight edges are the key to hitting your goals in the years to come.
If you’re looking for some real answers about what your portfolio should be doing for you and how to better tie your investments to the events and priorities that are important in your life, feel free to reach out. At RWM, Certified Financial Planners are standing by to help.
I’m biased, but I happen to think our growing team is incredible. Get in touch here: