I'll call the new method "rotation" to distinguish it from rebalancing. In brief, rotation ...
- Does not try to pinpoint the top or bottom. In fact, it is ordinarily a bit late.
- Does not prevent drawdowns. But it greatly reduces them, by design.
- Can easily be calibrated to limit tax consequences. Monthly churn is not necessary.
- Can align with personal tolerance for risk. A 90-10 split is not the only option; others, in fact, are ordinarily better.
- Has been robust, historically, across periods of high or low inflation, trending or choppy markets, and growing, stagnant, or recessionary economies in developed countries.
- Offers guidance about when and for whom the method is advisable. Sometimes, for some individuals, rebalancing may be better.