Today's animal spirits is brought to you by our friends at Y-charts.

Y-charts has been helpful to Michael and I, not just through the data they provide,

but also through their research. They have a really crack research staff,

and they sent us a report that they created right up our alley called

comparing portfolio rebalance strategies, which is optimal for advisors and their clients.

And they looked at these different rebalancing strategies,

and one of them was just, you don't rebalance, you just let it go.

Another one was, you have a 10% threshold, you have a 5% threshold,

they looked at all these different strategies for rebalancing,

and they also had quarterly rebalance or a month of rebalance or an annual rebalance.

And there certainly were some differences. I guess the never rebalance portfolio

probably does the best because stocks have done so well. They looked at this over the past 25 years,

or a 10% drift out of your weights was one of the better ones.

But I like how they said, basically, the six portfolios that they used all produced either

positive or negative returns uniformly in each of the 25 years, and rebalancing either

caused or prevented a significant performance difference in a given calendar year.

So there were differences over the long term, but basically,

this is the kind of thing where perfect is the enemy of good,

and it's more or less you pick a strategy and you stick with it.

We've read about this in the past. Listen, this is going to be luck involved, obviously.

It doesn't matter when you rebalance, it just matters that you do rebalance.

And this is more of a risk mitigation thing than anything,

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