Rebalancing methods

Dear all

I have a question on EOC schweser vol 5 session 16 reading 30 page 48

Question 3 states

You expect the stock market to be volatile over the next year. Hold period return expected :0%

Recommend and justify a portfolio investment strategy

Of course we know that volatility without a trend calls for CM (constant mix strategy) as per the book but with 0% return would buy and hold not be more efficient with fewer costs and taxes?

The point is that a constant mix strategy will likely produce a return higher than 0%.

Thanks !

You’re quite welcome.