Rebalancing

[gonetowindsurf]

Craig-you wrote in the FAQ  segment.
"Do I need to hold the bond for the entire time?
No. You will sell the bonds when they have 20 years left of maturity under the Permanent Portfolio strategy. You will then buy new 25-30 year bonds to replace them."

How does this work with rebalancing bands of 15% and 35%.

Is it an "either one or the other" situation - which ever comes first.

And i am sorry for the basic question - does the Treasury offer a 25 year bond? I only know about the 30 year. And how would I adopt the sell/buy strategy with TLT - or would I need to? since it dynamic.
thanks for clarification.
mike

[WildAboutHarry]

I'm not Craig, but long-term bonds are replaced at a 20-year maturity to provide greater protection from deflation/depression.  At the present time the treasury only offers 30-year bonds at auction, but you can obtain other maturities in the secondary market through a broker. 

With TLT the fund maintains a relatively constant maturity in the appropriate range.

If you are using rebalancing bands they apply to each asset in the portfolio and you rebalance when either of those rebalancing thresholds are hit with any of the four assets.

[Reub]

Who and where is Craig and is it true that he is living in MT's body?

[MediumTex]

Who and where is Craig and is it true that he is living in MT's body?

Craig and I are separate people, but we have much in common.

[Reub]

I know, MT. Just having a little fun.