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Portfolio Theory

tfpostman

Published: 12 Aug 2017 › Updated: 12 Aug 2017Portfolio Theory

Portfolio Theory

Nothing is more of a headache than rebalancing your portfolio.

Supposed some of your assets grow faster than other, then you liquidate it to buy assets that are growing slower/losing value so that your portfolio is rebalanced.

Then it might mean that you're always slowing down your best-performing assets.
For example, I held only 1% of my portfolio in Bitcoins because my conservative guess is that it has 1% chance of growing dominance in future.

But this boy always grows to become 5-10% of my portfolio even after I try to spend it and rebalance my portfolio from time to time.

At the rate it is expanding, I'm not entirely sure portfolio rebalancing serves my best interest.

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