Why Quarterly Rebalancing Matters?
@MaverickWealthBuilder:
March 28 is the last trading day of Q1 this year. According to a recent research report from $Goldman Sachs(GS)$ , it is estimated that $32 billion worth of stock assets will be sold off, mainly from pension funds. The sell-off in the U.S. stock market on the afternoon of March 26 is related to this. It is important to note that quarterly rebalancing is different from the 'index rebalancing' familiar to individual stock investors. Index rebalancing often does not occur on the final day of the quarter. For example, $S&P 500(.SPX)$ rebalances at the close of the third Friday of March, June, September, and December. Quarterly rebalancing generally refers to rebalancing asset portfolios (asset classes) and