Why buy and hold is called dynamic rebalancing stretegy? Isn’t it static? we are NOT DOING anything to rebalance.
It is static. Calling it dynamic is silly. Occasionally, CFA Institute does silly things.
Is there another strategy name for the ‘Constant Mix’ and ‘Constanf Proportion Portfolio Insurance’?
None of which I’m aware.
Why do you ask?
Because I remembered there wa a question mentioning another name for the two but I can’t recall that.
CFAI doesnt tell us that buy and hold is dynamic. Constant mix is dynamic (do something strategy) while buy and hold is static (do nothing strategy).
These are the other two covered rebalancing strategies, aside from Buy and Hold. Constant Mix is rebalancing back to original asset class weights after they’ve diverged after some time. Constant Proportion Portfolio Insurance (CPPI) is a strategy where you rebalance according to a formula reltaive to a cushion (buying winners when allocations deviate to the upside and selling losers when they deviate to the downside) - but it’s more than that). Read up on these man and how they affect performance in different markets - very testable and not that hard to understand. Source of easy points.
Misread your post…sorry…no other name that I know of.