It’s all about debt from here on out, and probably will be for many years. That’s old news, of course, but it’s still relevant, as we’ve been discussing, including here and here. A new research paper from the Bank for International Settlements is the latest contribution to the literature that rings the warning bells.
Daily Archives: April 7, 2010
THE COMPLICATIONS OF REBALANCING
The lessons tied to rebalancing a portfolio’s asset allocation should be simple, but they aren’t. Like every other investing topic, this one too comes with baggage. Although there’s a large body of research suggesting that rebalancing is productive, not everyone agrees. Some of this is about the details, although the basic question of whether rebalancing is worthwhile in concept is debated as well.