%0 Journal Article %A Natalie Chieffe %T Asset Allocation, Rebalancing, and Returns %D 1999 %R 10.3905/joi.1999.319432 %J The Journal of Investing %P 43-48 %V 8 %N 4 %X Conventional wisdom tells the individual investor approaching retirement to switch from equity to debt as the time of retirement approaches. When stock market valuations are very high, financial advisors issue warnings about stock investments and advise switching to bonds. This study shows empirically that the retirement portfolio is not higher than the probability of higher terminal wealth from balancing the retirement portfolio not higher than the probability of higher terminal wealth from a buy-and-hold strategy. It appears that most investors would be better off maintaining their original allocations until their investment goals or risk aversion change. Investors do not improve their chances of higher returns by considering market conditions when they rebalance their portfolios. %U https://joi.pm-research.com/content/iijinvest/8/4/43.full.pdf