Most investors believe they need to constantly rebalance to outperform

Most investors believe they need to constantly rebalance to outperform.

Update monthly.
React to news.
Stay “active.”

But what if the opposite is true?

Over the past year, I applied the CAN SLIM model in real time — with real capital — combined with the Lutey Recession Rule to guide market exposure.

📈 The result:

• +30%+ outperformance vs. the S&P 500 over the last year
• Achieved by holding positions from a single rebalance

To go deeper, I tested different holding periods within the same system:

• 3-month holds → captured early momentum
• 6-month holds → significantly improved excess returns
• 12-month holds → maximized trend capture and compounding

Across all cases, one pattern emerged:

👉 Longer holding periods consistently outperformed frequent rebalancing

The key🔑 is - the period to de-invest coincides with the market weakening phase of December 2024-February 2025. So when the Lutey Recession signal flashed a yellow 🟡 cautionary signal I paused the rebalancing. The result - +30% excess return held to date during the duration of the 🔴 red sell off - + recovery - and strength into new highs.