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I will soon begin a portfolio with annual+1 day rebalancing. Now this is probably an old and worn out question so forgive me:

How can I conduct annual rebalancing of my portfolio every December/January while maintaining the year+1 day holding period without going short term some years? The trick is I always want to rebalance at the end of December/January (you know the drill).

So if choose December 26th the 1st year and sell on December 28th the next, well I'll have to buy on December 29th, then sell the next year on December 31, and so on, until after a while I move into February. Is there a cycle where you do it for say five years, and then have to "eat it" one year to step back into December again? Maybe I should wait for a lower return or a year with a loss? I'm sure to many of you this is a basic question. Thanks for helping a dummy!

Any thoughts or the link to the answer would be greatly appreciated. Gracias, -The Mope
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