Comments on: Good posts on why bonds are important in a portfolio http://myfinancialjourney.com/archive/good-posts-on-why-bonds-are-important-in-a-portfolio Sun, 03 Jul 2011 02:33:03 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: anon http://myfinancialjourney.com/archive/good-posts-on-why-bonds-are-important-in-a-portfolio/comment-page-1#comment-271 anon Tue, 06 Feb 2007 19:49:40 +0000 http://www.myfinancialjourney.survivingkids.com/archive/good-posts-on-why-bonds-are-important-in-a-portfolio#comment-271 There seem to be two schools of thought on rebalancing. Most people simply view it as keeping the level of risk you decided on at the beginning and not letting a bull market throw your portfolio out of whack. Others, like makingourway, seem to think that it doesn't just reduce risk for an acceptable price..it actually increases returns! They're aren't alone; here's one link. http://www.efficientfrontier.com/ef/100/rebal100.htm If rebalancing actually increases returns, then MFJ, you and I should dump some of our stock RIGHT NOW! and stick it into bonds. Heheh. There seem to be two schools of thought on rebalancing. Most people simply view it as keeping the level of risk you decided on at the beginning and not letting a bull market throw your portfolio out of whack.

Others, like makingourway, seem to think that it doesn’t just reduce risk for an acceptable price..it actually increases returns! They’re aren’t alone; here’s one link. http://www.efficientfrontier.com/ef/100/rebal100.htm

If rebalancing actually increases returns, then MFJ, you and I should dump some of our stock RIGHT NOW! and stick it into bonds. Heheh.

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