Research On The Application Of Rebalancing Strategy In Stock And Bond Investment Portfoli

With the development of economy,the wealth of Chinese residents has been accumulating continuously.By the end of 2020,the total financial assets of my country’s urban and rural residents reached 256 trillion yuan.The scale of wealth management in my country is second only to that of the United States,making China the fastest-growing and most promising wealth management market in the Asia-Pacific and even the world.However,in sharp contrast,the overall wealth management knowledge of Chinese residents is still relatively lacking,and most people do not have rich experience in financial investment.How to choose investment tools and how to choose investment strategies has become a key issue for Chinese residents.Among many investment tools,stocks and bonds are undoubtedly the most common and important financial tools.The low or even negative correlation between the two can effectively achieve the purpose of investors controlling risks and improving returns.The decisive role of asset allocation on portfolio returns has been extensively verified theoretically and empirically.After the investment portfolio is established,due to asset price fluctuations,the actual portfolio ratio will deviate from the target ratio at the beginning of the period.At this time,a rebalancing strategy is required.To adjust the deviation in time to keep the portfolio stable.This paper verifies the practical role of the rebalancing strategy in the investment portfolio by measuring the historical data of the CSI 300 Index and the CSI All Bond Index,so as to provide a strategy for residents to allocate household financial assets.