Hey Titus, how's it going?

Hey, I'm good. I'm on the line with Peter Lazaroff, who's the co-cio of

Planned Corp and Brightplane. And Peter blogs at Peter Lazaroff.com,

and most importantly, for the purposes of this this discussion he is the author of the

recently published book Making Money Simple the complete guide to getting your

financial house in order and keeping it that way forever. I recently published a

two-part

and a P. P. on Abnome Returns so you can check those posts out for a deep dive

into some of the topics of the book. But today we are going to talk about the

idea of portfolio rebalancing.

So, Peter, portfolio rebalancing seems to be everywhere today.

I would argue that it's table stakes for advisors and roboo advisors.

So what is portfolio rebalancing? And is there something controversial about it that I'm missing.

Portfolio rebalancing is really all about maintaining the initial asset allocation. So at a high level, just the initial asset allocation so at a high level just the initial stock bond

targets that you were set out to do when you build the portfolio and you know what that

means is if you start with a 80% stock portfolio, 20% bond portfolio,

is the market goes up, the proportion of stocks grows from say 80% to maybe 85%.

And then that means you need to sell some stocks and buy some bonds to

bring that back in balance and there's really two things that are important

about that. The first one is that well hey then you get to buy low and sell

high on different asset classes so that's pretty

cool but most importantly in my opinion it's really just about maintaining that initial

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