Below the basic appreciation-stability allocation, rebalancing to targets among low-correlation asset classes is how you can get a rebalancing bonus.
Below these asset classes, sectors act as reminders of other aspects of your investment strategy.
We think holding your next seven years of spending in relatively safe bonds is always a good idea. But holding too much in bonds may not keep up with inflation and is not ideal for your long-term investment strategy.
We anticipated Consumer Staples to have a lower expected return but a larger risk-adjusted return and we expected Biotechnology to have very volatile returns with lower correlations to the other sectors. Both of those things happened in 2021.
An initial equal weight strategy of these 26 companies implemented on January 1, 2021 and held without further buys or sells through December 31, 2021 had a +8.64% advantage over the foreign healthcare benchmark.
You are allowed to deduct “up to 20 percent of their combined qualified real estate investment trust (REIT) dividends,” and this deduction is unlimited. So it begs the question: Is there a way I can deduct my normal real estate income?