Stretching the rebalance bands

[SmallPotatoes]

Has anyone looked into increasing/modifying the recommended rebalancing bands?  For instance is it more or less profitable to rebalance at 10-40%, 15-35 ( a la HB), or something else? 

Just a curious.

[dualstow]

For what it's worth, Harry addressed this in his Best-Laid Plans book ('87). If I remember correctly, he said that although one only needs to rebalance once a year, if you happen to see major movements in the market (can't look away) and something big is going on, you may want to make some adjustments. Where that stops and market timing starts is something we'll have to figure out.

On the other hand, I believe Harry wrote that once upon a time, he advised that pp investors could rebalance at 30% instead of 35% but later calculated that the extra activity did not produce any significant benefit.

Since I haven't rebalanced, I'm sure I'm going to be tempted when something hits 30%. My pp holdings are nowhere near that, though. Too new.
I, for one, would not have the stomach to hold on to 10% or 40%. Give me something like 34.5% so I can take some action already. My caveman genes are getting restless.

[Pkg Man]

HB also addressed this question from a caller on his show.  Anything less than 15% was not thought to be large enough to carry the portfolio when it's turn came.  And more than 35% and you risk a substantial loss if the markets turn against the asset.

As far as something less than the +- 10%, he said that 20/30 was fine, but as dualstow said, not likely worth the trouble.