https://www.google.com/url?q=http://www ... ofIjoFIybA
He has a rather contrarian view of rebalancing which he expresses in part II of the interview. There are three parts and they roll into each other without clicking on links.
Video Interview With Jack Bogle
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Video Interview With Jack Bogle
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Re: Video Interview With Jack Bogle
Interesting... Primarily he doesn't like rebalancing because it can require (and, he expects, always will require) leaving stocks for something else, and he likes stocks.
Then he goes on to say that he doesn't have a problem with it if you set wide bands, the example being:your target is 65%. Don't rebalance until it hits 60% or 70%.
The PP's default bands are much wider than that! And maybe if your asset allocation is 60% stocks and 40% T-bills, rebalancing would hurt your returns, but the PP certainly can and has rebalanced into stocks.
Then he goes on to say that he doesn't have a problem with it if you set wide bands, the example being:your target is 65%. Don't rebalance until it hits 60% or 70%.
The PP's default bands are much wider than that! And maybe if your asset allocation is 60% stocks and 40% T-bills, rebalancing would hurt your returns, but the PP certainly can and has rebalanced into stocks.