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To rebalance or not to rebalance

A new universe of investment classes and intra-market relationships have changed the spectrum of risk-reward.

Published Tue, Mar 12, 2019 · 09:50 PM

    DeeperDive is a beta AI feature. Refer to full articles for the facts.

    THE question of whether to shift allocation from equity to bonds is one that invariably comes up as often as the S&P500 achieves a new high.

    But is this the right question to ask? I would say that this question, like everything else, needs to evolve.

    Looking back, 2017 was a period of historically and almost stubbornly low volatility. Comparatively, 2018 was a rollercoaster ending in a December that hit the S&P500 with nearly a 16 per cent drop. The present has us coming off a two-week losing streak in the equity market and the US Fed putting a pause on their activity.

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