This is a question to the passive investors - those who decide on an asset allocation model, implement it, and then ignore it except for annual or bi-annual rebalancing. (I assume there are plenty of you out there given the number of times I've seen Bernstein's books recommended)
Do you ever catch yourself wanting to time the market? Do you give in to your temptations?
I usually don't, in fact I never had, but I did this week. I hold FXI - the iShares ETF that is a reasonable proxy for China. It has just about doubled this year (and quadrupled since I bought it in Jan-2005). I'm a bit worried that China is in a bubble (although I'm still a long-term China bull) so I sold half of my position - nothing too drastic, since it has doubled it was essentially the rebalancing I would have done in the new year anyway.
Its the first time I've transacted outside of my annual rebalancing since I adopted this investing approach 5 years ago or so.
Do you ever catch yourself wanting to time the market? Do you give in to your temptations?
I usually don't, in fact I never had, but I did this week. I hold FXI - the iShares ETF that is a reasonable proxy for China. It has just about doubled this year (and quadrupled since I bought it in Jan-2005). I'm a bit worried that China is in a bubble (although I'm still a long-term China bull) so I sold half of my position - nothing too drastic, since it has doubled it was essentially the rebalancing I would have done in the new year anyway.
Its the first time I've transacted outside of my annual rebalancing since I adopted this investing approach 5 years ago or so.