Non-Rebalancing

Rebalancing sells what worked to buy what did not. It is defensible for a fund tracking an index and indefensible for a reserve whose only job is to accumulate.

Consequences, stated plainly

• —Actual weights will drift from target weights, sometimes substantially
• —A single asset can come to dominate the Stockpile
• —Target weights describe where new capital goes, not what is held
• —The Stockpile view shows target and actual side by side so drift is visible

What corrects drift

Only new acquisitions. If an asset is far above its target weight, future settlements simply direct less capital to it. Existing positions are never trimmed.