Tag Archives: rebalancing

What September Brings for the S&P/CLX Index Series

September is here. The entire Chilean investment community has been looking forward to this month for many reasons. For one, the transition of operations of the Chilean indices has been completed. S&P Dow Jones Indices (S&P DJI) is now the official index administrator of the Bolsa de Santiago’s indices. Secondly, the rebalancing and reweighting of Read more […]

A Smarter Way to Rebalance with the BuyWrite Index (BXM)

As advisors begin mid-year rebalancing of client portfolios, they face a dilemma. While investors have enjoyed a 9-year Bull Market—including a 21.14% total return by the S&P 500 in 2017—their investment portfolios have built up more equity risk. Absent rebalancing, a standard 60/40 equity/bond portfolio might now resemble a riskier 75/25 allocation. Given these sizable Read more […]

Whether the Market Is Overvalued or Not, It Can Pay to Rebalance

Current valuations of U.S. stocks inevitably lead to debate over their prospects for future returns, earnings sustainability, and whether we are in the midst of a stock market bubble.  Some measures indicate the market is richly valued by historical standards, but no one knows what the future holds.  However, one thing is clear—the potential value Read more […]

A Tale of Two Benchmarks: Reconstitution Effect

This is the second in a series of blog posts relating to the in depth analysis of performance differential between the S&P SmallCap 600 and the Russell 2000. Numerous studies have been conducted on Russell’s annual reconstitution process in June, particularly regarding the downward price pressure placed on the Russell 2000.  As winners from the Russell 2000 Read more […]