David, two ways to possibly address your question.
One is how lazy does one want to be? also how often would someone rebalance? I'm not sure it is economical for people to rebalance based on a 5% move, for example. There is some number for each person where it does makes sense. With $50,000 total 5% is probably no, with $5 million it would be economical.
Despite that it might not be economical people do feel, emotionally a 5-10% decline so the right absolute fund could help.
Another thing about rebalancing is that people seem to become reluctant to buy more stock when the market drops, just normal human nature.
It is possible an absolute fund could lessen the blow for people who are not good at rebalancing.
Explore More Core [View article]
One is how lazy does one want to be? also how often would someone rebalance? I'm not sure it is economical for people to rebalance based on a 5% move, for example. There is some number for each person where it does makes sense. With $50,000 total 5% is probably no, with $5 million it would be economical.
Despite that it might not be economical people do feel, emotionally a 5-10% decline so the right absolute fund could help.
Another thing about rebalancing is that people seem to become reluctant to buy more stock when the market drops, just normal human nature.
It is possible an absolute fund could lessen the blow for people who are not good at rebalancing.
Lastly, its just a theoretical example:-)
iShares Launching 5 New International ETFs Including Israel, Thailand and Turkey [View article]