Cortopassi wrote: ↑Tue Jun 26, 2018 3:12 pm
Dieter wrote: ↑Tue Jun 26, 2018 3:03 pm
ochotona wrote: ↑Tue Jun 26, 2018 2:01 pm
My what big rebalancing bands you have. Where did 10/40 come from ?
That's the standard 15% lower bound.
A 40% shave from 25% gives 15%.
Dieter, correct on % but I did mean 10% left of 25% allocation, so 60% drop, or 1.6x increase to 40% allocation from 25%. +/-60% of original.
I think I edited my post at the same time you wrote this... Use of "40% drop" in the examples through me -- shouldn't those use 60%?
"If you stick by Harry's original 25/25/25/25, and the 10%/40% rebalancing bands, here's the pain that must be endured, assuming you rebalanced at the beginning of the year and are waiting for a 10% band (40% drop). This assumes the other allocations in the portfolio have held steady.
Gold, 1/1/2018: ~$1312/oz.
--40% drop to reach rebalance band, gold would need to hit $787
TLT, 1/1/2018: ~125.50/sh
--40% drop to reach rebalance band, TLT would need to hit $75.30
"