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Stick To Automatic Rebalancing
- Rebalance automatically and stick to the plan during long bull markets to avoid emotional mistakes.
- Use diversified, value-tilted portfolios so rebalancing captures opportunities across regions and styles.
Diversification Hides US 'Lost Decade' Risk
- The US 'lost decade' shows narrow market returns mask broader global gains when diversified.
- Adding small-cap, value and global exposure turned a weak US decade into respectable returns.
Be Selective With Tax-Loss Harvesting
- Consider tax-loss harvesting selectively and only for material losses given superficial/wash-sale rules.
- Remember harvesting defers taxes and only helps if future tax rates are the same or lower.