Two tenets of personal finance came under attack after the financial crisis.  The first was diversification and the second was the concept of buy-and-hold investing.  A quick glance at the performance of major asset classes over the past decade shows that a focus on US equity assets would have left an investor out in the cold.  Admittedly all risky assets tanked during the financial crisis but a longer time horizon shows the benefits of a globally diversified portfolio.  The concept of buy-and-hold has also been tarnished.  However the idea that one would buy a portfolio and never adjust it was always in error.  Re-balancing is a key, albeit modest, component of any buy-and-hold approach.  In today’s screencast we re-examine a couple key components in portfolio management.

Items mentioned in the above screencast:

A look at the past year (and decade) for the Global Markets Index.  (Capital Spectator)

On the power of portfolio re-balancing.  (SFO)

This content, which contains security-related opinions and/or information, is provided for informational purposes only and should not be relied upon in any manner as professional advice, or an endorsement of any practices, products or services. There can be no guarantees or assurances that the views expressed here will be applicable for any particular facts or circumstances, and should not be relied upon in any manner. You should consult your own advisers as to legal, business, tax, and other related matters concerning any investment.

The commentary in this “post” (including any related blog, podcasts, videos, and social media) reflects the personal opinions, viewpoints, and analyses of the Ritholtz Wealth Management employees providing such comments, and should not be regarded the views of Ritholtz Wealth Management LLC. or its respective affiliates or as a description of advisory services provided by Ritholtz Wealth Management or performance returns of any Ritholtz Wealth Management Investments client.

References to any securities or digital assets, or performance data, are for illustrative purposes only and do not constitute an investment recommendation or offer to provide investment advisory services. Charts and graphs provided within are for informational purposes solely and should not be relied upon when making any investment decision. Past performance is not indicative of future results. The content speaks only as of the date indicated. Any projections, estimates, forecasts, targets, prospects, and/or opinions expressed in these materials are subject to change without notice and may differ or be contrary to opinions expressed by others.

Please see disclosures here.

Please see the Terms & Conditions page for a full disclaimer.