Time to rebalance to personal asset allocation?

TD Waterhouse one month performance chart above shows:

  • Purple line: SPY exchange-traded fund (reflecting the US market) is up 3%.
  • Lower line: TSE exchange-traded fund (reflecting the Canadian market) is at 0%.
  • The bars show volume. We can ignore them.

In our core portfolio, we maintain a 50-50 balance between SPY (the US market) and a US money market fund. The one-month 3% growth shown in the chart above, combined with previous growth, resulted in having the SPY portion go up to 63% of the portfolio, so we rebalanced to bring it back to 50-50.

The cost of the transaction? It is less than $10 whether you are shifting a four-digit amount or a seven-digit amount!

Columbia University, Emeritus Professor Dr. A. A., recently asked how we chose the percentage rise or drop in to keep our asset allocation balanced. The preceding link explains.


Dr. Milan Somborac

The Monday Morning Millionaire Program supports do-it-yourself (DIY) investors which I have been for over 50 years. About my team and me

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