Marc Faber Portfolio: Rebalancing Strategy

Data Source: from January 1976 to October 2024
Consolidated Returns as of 31 October 2024

Managing the Marc Faber Portfolio with a yearly rebalancing, you would have obtained a 8.63% compound annual return in the last 30 Years.

With a quarterly rebalancing, over the same period, the return would have been 7.74%.

How do returns and drawdowns change, implementing different rebalancing strategies?

Rebalancing Strategies

In order to keep risk under control, you should rebalance assets quotes from time to time, so to keep them at the original percentage of the asset allocation.

Rebalancing can be performed in several ways.

At fixed time intervals:
  • Yearly: Jan 1st
  • Half Yearly: Jan 1st, Jul 1st
  • Quarterly: Jan 1st, Apr 1st, Jul 1st, Oct 1st
When a component (at least one) diverges from its original weight beyond a certain threshold (e.g. 5% or 10%).

Portfolio Returns as of Oct 31, 2024

Implementing different rebalancing strategies, the Marc Faber Portfolio guaranteed the following returns.

According to the available data source, we assume we built the portfolio on January 1976.

Portfolio returns are calculated in USD, assuming:
  • No fees or capital gain taxes
  • the reinvestment of dividends, if existing
MARC FABER PORTFOLIO RETURNS
Period: January 1976 - October 2024
Annualized Returns
Swipe left to see all data
Return (%) and number of rebalances as of Oct 31, 2024
Rebalancing Strategy 1Y 5Y 10Y 30Y MAX
(~49Y)
No Rebalancing 33.64 (0) 6.53 (0) 7.16 (0) 8.63 (0) 10.01 (0)
Yearly Rebalancing 28.41 (1) 7.08 (5) 6.57 (10) 7.87 (30) 9.56 (49)
Half Yearly Rebalancing 28.24 (2) 7.01 (10) 6.58 (20) 7.74 (60) 9.38 (98)
Quarterly Rebalancing 28.23 (4) 7.02 (20) 6.62 (40) 7.81 (120) 9.37 (196)
5% Tolerance per asset 28.42 (1) 7.34 (3) 6.80 (5) 7.97 (19) 9.68 (36)
10% Tolerance per asset 29.64 (0) 6.93 (1) 6.61 (1) 7.96 (5) 9.80 (11)

In order to have complete information about the portfolio, please refer to the Marc Faber Portfolio: ETF allocation and returns page.

Performances as of Oct 31, 2024

Historical returns and stats of Marc Faber Portfolio, after implementing different rebalancing strategies.

MARC FABER PORTFOLIO PERFORMANCES
Period: January 1976 - October 2024
Swipe left to see all data
Standard Deviation
Max Drawdown (%)
Rebalancing Strategy Return % Std Dev(%) Ret. / Std Dev MaxDD(%) Ret. / MaxDD
No Rebalancing 10.01 (0) 13.26 0.75 -53.96 0.19
Yearly Rebalancing 9.56 (49) 9.60 1.00 -28.82 0.33
Half Yearly Rebalancing 9.38 (98) 9.59 0.98 -29.57 0.32
Quarterly Rebalancing 9.37 (196) 9.59 0.98 -29.54 0.32
5% Tolerance per asset 9.68 (36) 9.61 1.01 -30.09 0.32
10% Tolerance per asset 9.80 (11) 9.81 1.00 -26.95 0.36
(*) Since Jan 1976 (~49 yrs) | Annualized Returns (and number of rebalances)

Drawdowns as of Oct 31, 2024

Historical Drawdowns of Marc Faber Portfolio, after implementing different rebalancing strategies.

MARC FABER PORTFOLIO DRAWDOWNS
Period: January 1976 - October 2024
Swipe left to see all data
Rebalancing
Tolerance per asset
No Rebalancing Yearly Half Yearly Quarterly 5% 10%
-53.96
Feb 2007 - Apr 2011
-28.82
Jun 2008 - Mar 2010
-29.57
Jun 2008 - Mar 2010
-29.54
Jun 2008 - Nov 2009
-30.09
Jun 2008 - Dec 2009
-26.95
Jun 2008 - Nov 2009
-26.95
Jan 2022 - Aug 2024
-19.93
Jan 2022 - Jun 2024
-19.99
Jan 2022 - Jun 2024
-20.08
Jan 2022 - Jun 2024
-20.36
Jan 2022 - Jun 2024
-21.07
Jan 2022 - Jun 2024
-21.86
Dec 1980 - Dec 1982
-16.06
Dec 1980 - Oct 1982
-16.34
Dec 1980 - Oct 1982
-16.71
Dec 1980 - Oct 1982
-16.11
Dec 1980 - Oct 1982
-14.96
Dec 1980 - Oct 1982
-21.30
Feb 2020 - Dec 2020
-13.66
Feb 1980 - Jun 1980
-13.66
Feb 1980 - Jun 1980
-13.66
Feb 1980 - Jun 1980
-12.98
Feb 1980 - Jun 1980
-13.72
Feb 2020 - Jul 2020
-16.34
Feb 1980 - Jun 1980
-11.30
Feb 2020 - Jul 2020
-11.30
Feb 2020 - Jul 2020
-11.30
Feb 2020 - Jul 2020
-11.17
Feb 2020 - Jul 2020
-13.66
Feb 1980 - Jun 1980
5 Worst Drawdowns - Average
-28.08 -17.95 -18.17 -18.26 -18.14 -18.07
10 Worst Drawdowns - Average
-20.46 -13.34 -13.42 -13.37 -13.33 -13.50

For a deeper insight, please refer to the Marc Faber Portfolio: ETF allocation and returns page.