“Row, Not Sail.” In strongly trending markets such as secular bull markets, the best strategy is to get fully invested and remain so. Let the profits and over-allocation in equities compound to your benefit. In choppy and volatile markets, an approach involving more frequent rebalancing can add significant additional return to an investor’s portfolio. Based upon recent secular market history, the risk (cost) of more frequent rebalancing in secular bull markets is far less than the opportunity derived from more frequent rebalancing in secular bear markets. Rebalancing is the active management technique that capitalizes on market cycles. Over-performance in one category (asset class) is shifted to another category to benefit from the second category’s later good performance.