Excellent Interview with Larry [Swedroe]

[ppnewbie]

He goes through many of the behavioral biases that cause people to underperform. Also he pretty much nails why its so hard to sell a winner and buy a loser (IE rebalance).

[seajay]

Haven't watch it, but its not at all hard to sell some of a winner in drawdown, or add to a loser in accumulation years. No need to have large cash reserves either when your credit card(s) may cover 5 digit amounts.

Spend using a credit card at the start of a month and at that time it might have otherwise taken 103 stock shares being sold to have paid in 'cash', but only 100 shares at month end. Broadly out of stocks and gold one or the other on average tends to 'pop' +3.5% each month (in a highly variable manner though, in some cases +20%). So each month sell some of whatever is most above your target weighting at the time. That form of 'withdrawals' alone can be enough rebalancing in itself. With no further rebalancing you may end up at 80/20 having started at 50/50, i.e. one of the two did very well, enough to cover withdrawals and still outpace the other asset. In which case you time averaged 65/35 in the best/poorer performing assets - a reasonable/good average asset allocation.

Rebalanced, or not, broadly washes, one or the other will be the better of the two, but unpredictably and in around equal probabilities.

[dualstow]

Awesome, listening now. Thank you!
I fixed the title, ladygeek style.