Thematic Rebalancing

Typically in the generic world of asset allocation, the rebalancing or reallocation of asset classes is automatically triggered daily, weekly, etc. This very important aspect of investing is computerized and implemented without any forethought.

The fallacy of automating this process is the potential upside limitation of outperforming asset classes. Conversely, this could increase the allocation of underperforming asset classes at an inopportune time.

Our wealth management strategy utilizes what we call “thematic rebalancing.” This is the rebalancing of asset classes after serious deliberation of evolving investment themes.