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To: Logos who wrote (45496)5/30/1998 5:11:00 PM
From: Chuzzlewit  Respond to of 176387
 
Thanks Hazem, now I've got it! I actually read a study that shows that a similar portfolio balancing technique outperforms a strict buy and hold by a small but significant margin. Basically, the approach is that at the end of each year you adjust the portfolio so that it is equally dollar weighted in each stock. I don't think the study considered taxes (although it may have), and if so it is probably dated because of new US capital gains rates.

TTFN,
CTC