Paul Merriman Ultimate Buy and Hold Strategy Portfolio: Rebalancing Strategy

Data Source: from January 1976 to October 2024
Consolidated Returns as of 31 October 2024

Managing the Paul Merriman Ultimate Buy and Hold Strategy Portfolio with a yearly rebalancing, you would have obtained a 8.94% compound annual return in the last 30 Years.

With a quarterly rebalancing, over the same period, the return would have been 8.28%.

How do returns and drawdowns change, implementing different rebalancing strategies?

Rebalancing Strategies

In order to keep risk under control, you should rebalance assets quotes from time to time, so to keep them at the original percentage of the asset allocation.

Rebalancing can be performed in several ways.

At fixed time intervals:
  • Yearly: Jan 1st
  • Half Yearly: Jan 1st, Jul 1st
  • Quarterly: Jan 1st, Apr 1st, Jul 1st, Oct 1st
When a component (at least one) diverges from its original weight beyond a certain threshold (e.g. 5% or 10%).

Portfolio Returns as of Oct 31, 2024

Implementing different rebalancing strategies, the Paul Merriman Ultimate Buy and Hold Strategy Portfolio guaranteed the following returns.

According to the available data source, we assume we built the portfolio on January 1976.

Portfolio returns are calculated in USD, assuming:
  • No fees or capital gain taxes
  • the reinvestment of dividends, if existing
PAUL MERRIMAN ULTIMATE BUY AND HOLD STRATEGY PORTFOLIO RETURNS
Period: January 1976 - October 2024
Annualized Returns
Swipe left to see all data
Return (%) and number of rebalances as of Oct 31, 2024
Rebalancing Strategy 1Y 5Y 10Y 30Y MAX
(~49Y)
No Rebalancing 29.42 (0) 8.11 (0) 7.83 (0) 8.94 (0) 11.72 (0)
Yearly Rebalancing 27.29 (1) 7.35 (5) 7.09 (10) 8.36 (30) 11.56 (49)
Half Yearly Rebalancing 27.44 (2) 7.34 (10) 7.09 (20) 8.28 (60) 11.37 (98)
Quarterly Rebalancing 27.46 (4) 7.37 (20) 7.08 (40) 8.25 (120) 11.29 (196)
5% Tolerance per asset 27.29 (1) 7.40 (1) 7.28 (2) 8.41 (4) 11.57 (9)
10% Tolerance per asset 28.08 (0) 7.54 (0) 7.31 (1) 8.01 (1) 11.36 (2)

In order to have complete information about the portfolio, please refer to the Paul Merriman Ultimate Buy and Hold Strategy Portfolio: ETF allocation and returns page.

Performances as of Oct 31, 2024

Historical returns and stats of Paul Merriman Ultimate Buy and Hold Strategy Portfolio, after implementing different rebalancing strategies.

PAUL MERRIMAN ULTIMATE BUY AND HOLD STRATEGY PORTFOLIO PERFORMANCES
Period: January 1976 - October 2024
Swipe left to see all data
Standard Deviation
Max Drawdown (%)
Rebalancing Strategy Return % Std Dev(%) Ret. / Std Dev MaxDD(%) Ret. / MaxDD
No Rebalancing 11.72 (0) 15.75 0.74 -56.50 0.21
Yearly Rebalancing 11.56 (49) 15.36 0.75 -57.21 0.20
Half Yearly Rebalancing 11.37 (98) 15.39 0.74 -57.22 0.20
Quarterly Rebalancing 11.29 (196) 15.39 0.73 -57.01 0.20
5% Tolerance per asset 11.57 (9) 15.47 0.75 -58.38 0.20
10% Tolerance per asset 11.36 (2) 15.44 0.74 -57.57 0.20
(*) Since Jan 1976 (~49 yrs) | Annualized Returns (and number of rebalances)

Drawdowns as of Oct 31, 2024

Historical Drawdowns of Paul Merriman Ultimate Buy and Hold Strategy Portfolio, after implementing different rebalancing strategies.

PAUL MERRIMAN ULTIMATE BUY AND HOLD STRATEGY PORTFOLIO DRAWDOWNS
Period: January 1976 - October 2024
Swipe left to see all data
Rebalancing
Tolerance per asset
No Rebalancing Yearly Half Yearly Quarterly 5% 10%
-56.50
Jun 2007 - Dec 2012
-57.21
Nov 2007 - Jan 2013
-57.22
Nov 2007 - Jan 2013
-57.01
Nov 2007 - Jan 2013
-58.38
Nov 2007 - Mar 2013
-57.57
Nov 2007 - Mar 2013
-30.65
Jan 2020 - Dec 2020
-27.54
Jan 2020 - Nov 2020
-27.54
Jan 2020 - Nov 2020
-27.54
Jan 2020 - Nov 2020
-27.28
Jan 2020 - Nov 2020
-27.30
Jan 2020 - Nov 2020
-24.52
Sep 1987 - Jan 1989
-25.26
Sep 1987 - Jan 1989
-26.05
Sep 1987 - Jan 1989
-25.89
Sep 1987 - Jan 1989
-25.80
Sep 1987 - Jan 1989
-24.61
Jan 2022 - Mar 2024
-24.11
Oct 1989 - Dec 1991
-24.70
Jan 2022 - Mar 2024
-24.73
Jan 2022 - Mar 2024
-24.76
Jan 2022 - Mar 2024
-24.62
Jan 2022 - Mar 2024
-23.97
Sep 1987 - Dec 1988
-22.96
Jan 2022 - Mar 2024
-21.87
Jan 1990 - May 1991
-21.89
Jan 1990 - May 1991
-21.82
Jan 1990 - May 1991
-22.08
Jan 1990 - May 1991
-23.30
Jan 1990 - Dec 1991
5 Worst Drawdowns - Average
-31.75 -31.32 -31.49 -31.40 -31.63 -31.35
10 Worst Drawdowns - Average
-25.30 -24.46 -24.64 -24.63 -24.85 -24.60

For a deeper insight, please refer to the Paul Merriman Ultimate Buy and Hold Strategy Portfolio: ETF allocation and returns page.