Portfolio Rebalancing Strategies

southern rock ska, sitar bubblegum dance, harpischord g-funk · 4:11

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Lyrics

[Verse 1]
Sarah's portfolio shifts like weather patterns
Stocks climbed high while bonds stay flat
Her sixty-forty split now leans toward equities
Time to trim the fat, bring balance back

Three methods wait to solve her puzzle
Calendar calls once every year
Percentage rules when drift gets major
Corridor keeps the targets clear

[Chorus]
Calendar clicks, percentage picks, corridor tricks
Keep your allocation intact
When markets swing and fortunes ring
Rebalance brings you back on track
CAL-PER-COR, these three restore
Your target weights exactly
Trim the winners, feed the thinnest
Portfolio rebalancing strategy

[Verse 2]
Calendar method marks the seasons
June and December, rain or shine
Regardless if the market's dancing
Rebalance every single time

Percentage method waits and watches
Five percent drift triggers action
If stocks balloon from sixty-five
Time for portfolio subtraction

[Chorus]
Calendar clicks, percentage picks, corridor tricks
Keep your allocation intact
When markets swing and fortunes ring
Rebalance brings you back on track
CAL-PER-COR, these three restore
Your target weights exactly
Trim the winners, feed the thinnest
Portfolio rebalancing strategy

[Bridge]
Corridor builds a tolerance zone
Two percent above, two percent below
Only when you breach the boundaries
Do you make the rebalancing flow

Transaction costs can eat your returns
Frequent trading steals your gains
Choose your method, stick with wisdom
Let discipline break market chains

[Final Chorus]
Calendar clicks, percentage picks, corridor tricks
Keep your allocation intact
When markets swing and fortunes ring
Rebalance brings you back on track
CAL-PER-COR, these three restore
Your target weights exactly
Sell what's soared, buy what's poor
Portfolio rebalancing strategy

[Outro]
Discipline beats emotion every time
Keep your targets, stay in line

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