Member Question #6 – Portfolio Rebalancing

Portfolio rebalancing is a common aspect of long-term investing and one that you’ve likely heard discussed before.  However due to the fact that we don’t fall into the “buy and hold” trap of Modern Portfolio Theory and instead we trade tactically, it doesn’t really apply to us.

Here’s a basic explanation of why it doesn’t apply to us, and how our portfolio rebalancing happens dynamically with each new trade we make.