Monthly archives: August, 2009

A random walk down wall street (Malkiel)

First published in 1973 and revised nine times since, this classic offers practical advice that is backed by no non-sense explanations.

On the theory side, you will find this book useful if you are looking for an introductory explanation on these topics: modern portfolio theory and CAPM, efficient markets, random walk.

Rebalancing or not ?

Should you rebalance your portfolio ? There are conflicting opinions on this topic. For David Swensen, author of “Unconventional success”, rebalancing imposes a disciplined “buy low, sell high” strategy. Mr. Swensen is known for his impressive track record at the head of the Yale endowment. For John Bogle, “rebalancing is a personal choice, not a choice that statistics can validate”.

You can see for yourself the effects of rebalancing in our portfolio analysis tool. We have added an option that makes it straightforward to compare it against buy-and-hold.