Hmm. Maybe you’re right. I guess I was thinking there was an important difference between “constant leverage” and infrequent rebalancing. But I guess that’s a more complicated subject.
That seems to be a common view, but I haven’t yet been able to find any reason why that would be the case, except insofar as rebalancing frequency affects how leveraged you are. I discussed the topic a bit here. Maybe someone who knows more about the issue can correct me.
Hmm. Maybe you’re right. I guess I was thinking there was an important difference between “constant leverage” and infrequent rebalancing. But I guess that’s a more complicated subject.
That seems to be a common view, but I haven’t yet been able to find any reason why that would be the case, except insofar as rebalancing frequency affects how leveraged you are. I discussed the topic a bit here. Maybe someone who knows more about the issue can correct me.