Faculty Publications


Blind Adherence to Re-balancing May Be Hazardous to One's Wealth

Document Type


Publication Date



Annually at this time of year, we are inundated with financial advice columns suggesting that investors re-balance their investment portfolios.

Conventional wisdom states that it is prudent to sell a portion of an asset class that has recently outperformed to buy the asset class that has recently under-performed in order to bring the long-term target asset allocation back into balance.