Implementation of Anti-Crises Investment Strategies: Machine-Building Case

Abstract

The negative impact of emotion-driven investing upon long-term wealth can be devastating. This article examines the benefits of portfolio rebalancing to help investors achieve their investment goals and avoid the most common investment mistakes. The results of this study, based on a 20-year investment horizon, support a minimum of 45% percent allocation to stocks, with annual portfolio rebalancing. The performance from disciplined annual rebalancing is shown to be a superior investment approach