Comments on: The value of MarketRiders http://blogs.reuters.com/felix-salmon/2011/04/11/the-value-of-marketriders/ A slice of lime in the soda Sun, 26 Oct 2014 19:05:02 +0000 hourly 1 http://wordpress.org/?v=4.2.5 By: dv01 http://blogs.reuters.com/felix-salmon/2011/04/11/the-value-of-marketriders/comment-page-1/#comment-49917 Tue, 13 May 2014 16:15:11 +0000 http://blogs.reuters.com/felix-salmon/?p=7899#comment-49917 Three years on, this is especially amusing since Malkiel is now CIO at Wealthfront, a firm which charges 25bps to rebalance your portfolio.

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By: engineer27 http://blogs.reuters.com/felix-salmon/2011/04/11/the-value-of-marketriders/comment-page-1/#comment-25718 Mon, 11 Apr 2011 22:07:19 +0000 http://blogs.reuters.com/felix-salmon/?p=7899#comment-25718 I think you underestimate the value of laziness, and overestimate the value of accurately calculating rebalancing targets. Really, once a year is the time to start thinking about rebalancing; when you get around to actually doing it can be even less frequent. I’m sure Malkiel agrees that market-timing is a fool’s errand (at least, he says so in his book), so whenever you get around to investing is really the best time to do it. Letting sale proceeds and dividends pile up for a while isn’t really a problem (2008s happen on occasion); and if hitting your rebalancing target on the nose means you have to sell some stuff, maybe it’s better for you if you don’t get around to it right away (since 2010s happen once in a while, too).
Plus, you can enjoy life, sleep better, and be healthier overall when you limit worrying about your investments when you are interested and in the mood to do the legwork, research, and decision-making.
Let’s hear it for procrastination!

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By: JohnOmeara http://blogs.reuters.com/felix-salmon/2011/04/11/the-value-of-marketriders/comment-page-1/#comment-25711 Mon, 11 Apr 2011 16:15:52 +0000 http://blogs.reuters.com/felix-salmon/?p=7899#comment-25711 Professor Malkiel ought to be pretty familiar with the gap between investment theory and investor behavior. This is the guy who popularized the idea of stock pickers as monkeys throwing darts and advocates a two fund portfolio with annual re-balancing in the above article but has “a quarter to a third of (his) money in individual stocks and actively managed funds”.

http://online.wsj.com/article/SB12309369 2433550093.html

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