Question on rebalancing
Posted: Mon Mar 03, 2014 10:06 am
Lets say I have the PP 25% IAU/SGOL/GTU, 25%VT, 25% TLT, 25% BIL
Let us assume gold reaches 35% band to trigger a rebalance event, I then would sell some of the gold ETF's and purchase whatever is lagging. But now I only would have less than 25% in gold in the PP----ahh nevermind I think I just answered my own question, I would own less shares thatn before but these fewer shares would be worth more so all is even again, right??
Let us assume gold reaches 35% band to trigger a rebalance event, I then would sell some of the gold ETF's and purchase whatever is lagging. But now I only would have less than 25% in gold in the PP----ahh nevermind I think I just answered my own question, I would own less shares thatn before but these fewer shares would be worth more so all is even again, right??