You typically rebalance a 60% S&P 500 / 40% US Aggregate bond portfolio at the end of each year. On March 23, 2020 you decide to rebalance at the close. In hindsight, about how much excess return (versus not rebalancing) did you generate?
Very roughly, 60-40 moved to 50-50 at the bottom of the drawdown. And stocks were up ~45% from the lows by the end of the year. So you gained 10% of 45% i.e. about 4.5% by rebalancing to 60-40. Bonds are a rounding error. How did I do?
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Take the rest of the day off, champ
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Cool, gives me more time to work on my "moving back into stocks at the exact bottom of the crash" timing strategy ;)
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