Ramin Nakisa

And then you get this massive shift upwards to like 4.5 to 5%, which is where we are today, which is normal, right?

The situation we were in previously was abnormal and it had been there for so long that people forgot.

But I think now with fixed income, like you say,

You earn a pretty good income.

If you think about the return and the risk that you're taking to generate it, is the UK government going to default on its debt?

No, they're not.

So when you see a bond sell off, you just think, oh, nice, I can be paid half a percent more than I was last week because people are freaking out.

Well, not very often.

I think that's the other take home from the research on rebalancing.

You know, once a year is probably enough.

If there are periods when you have big crashes, then you can rebalance more frequently.

But it's very little work.

And nowadays, a lot of the platforms, they just have a button where you can literally just click on it and it rebalances it for you.

So it's so easy to do.

But it does incur a trading cost.

So usually it's a good idea not to do that very often.

So you're

Yeah, I mean, it scales roughly linearly, not exactly because of the correlations.

But if I have 60% of the equity exposure, I'll get 60% of the return long term.

So am I happy with that?