Rebalancing

[audreyh1]

Buying bonds which had a 30 year bull run and are excessively expensive sounds more like tempting fate. To each his own.

In maintaining an AA I don't have to worry about which asset class might be overvalued at any given moment in time. If/when it corrects, I buy more. I don't trim or change my AA in anticipation of a correction.

We'll see. We still don't know if we are going the way of Japan deflation. It could still be a long time before a "bear market" in bonds starts, and it still could be gradual. Stocks seem expensive too (they seemed reasonable at the start of the year but no longer). We just don't know how it will play out, so I won't try to guess.

 

[audreyh1]

Since rebalancing on 5/20 - bonds down 0.8%, but stocks down 2.5%! (And I still have end-of-month distributions to be paid on the bond funds which will reduce the loss).

Not that it matters or anything. Who knows what things will look like in 3 months, or by the end of the year?