A recent paper “Rebalancing for Tax-Deferred Accounts: Just Do It, Don’t Worry How” in the FPA Journal discusses 21 different technique of re-balancing and tries to quantify which technique is better. According to the authors, it turns out that,
… given our assumptions, none of the techniques tested here are clearly superior when evaluated solely [...]
We all know that holding stocks for the long run is the recipe for wealth accumulation. According to MIT Professor Andrew Lo, $1 invested in the S&P 500 index on 1/1/1926 would have grown to about $4000 by the end of 2005. Not bad considering that $1 invested in the aggregate bond market over the [...]
With the most recent Federal Reserve target rate hike to 4.75% on 3/28, the yields of longer-term bonds are finally moving up. As of this moment, it sure looks like the percularity of the inverted bond yield curve is ending.
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