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)