How Often Should I Rebalance My Portfolio?

by | Sep 23, 2013 | Asset Management, Videos

A question that many investors ask their advisor is, “How often should I rebalance my portfolio?”. The majority of financial planners, brokers, and investment advisors suggest quarterly rebalancing. However, that might not be the best strategy to invest with. Tom and Brendan discuss quarterly rebalancing in this video, and why it might not work for you.

Quarterly rebalancing is intended to keep your portfolio from becoming too heavily weighted in one asset class or sector. Why do you need to rebalance every quarter though? Wouldn’t it be great if there were a way to tell which asset classes and sectors were coming into and out of favor? There actually is, and that’s why we think quarterly rebalancing might not be the best investment strategy. Tom and Brendan discuss how point and figure technical analysis gives clear signals to let them know when sectors and asset classes are moving into and out of favor. Rebalancing a portfolio based on the information the charts provide seems a lot more logical than rebalancing because the quarter ended yesterday.

So if you’re still wondering, “How often should I rebalance my portfolio?”, watch this video from Mullooly Asset Management, and feel free to contact us with any questions!