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US vs International stock rebalancing

B
May 7, 2025 · 23:54

Say that every other decade the market dictates that the US will outperform international and vice versa. If on average they go up at the same rate over a long period of time and one doesn't end up beating the other over time, how does rebalancing every month or year affect the outcome? Does it sell high and buy low inherently, or does the act of rebalancing in this scenario not make a difference?