NW-Bound
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- Jul 3, 2008
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Instead of keeping your index finger poised over the "sell" button?That's why I am keeping my fingers crossed!!!
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Instead of keeping your index finger poised over the "sell" button?That's why I am keeping my fingers crossed!!!
Not me. I am not far enough from my target equity allocation of 45%. Today it is at 45.75%, but my written financial plan says it would have to be 47.5% for me to rebalance.I pulled the trigger and rebalanced this morning.
Instead of keeping your index finger poised over the "sell" button?
Selling has tax consequences. I'd rather defer those taxes until next year.
One has to wonder, IMO, how much longer large cap US stocks can keep leading the entire market. Almost time to do some redistribution, and yet again it's time to trim large cap domestic while purchasing other equity classes.
Frankly this reminds me of the run-up before the bear market of 2000-01. Large cap domestic was destroying all other equity asset classes for a long time during that raging bull.... and after the end of said Ursa Major and the recovery began in 2002, small caps, emerging markets and (for a while) REITs caught fire.
One has to wonder, IMO, how much longer large cap US stocks can keep leading the entire market. Almost time to do some redistribution, and yet again it's time to trim large cap domestic while purchasing other equity classes.
Frankly this reminds me of the run-up before the bear market of 2000-01. Large cap domestic was destroying all other equity asset classes for a long time during that raging bull.... and after the end of said Ursa Major and the recovery began in 2002, small caps, emerging markets and (for a while) REITs caught fire.
Mortgage rates are up sharply in the last 60 days. Big banks are all over 4 percent on 30 year fixed mortgages, with most circling near 4.25 percent. The chilling effect is already being felt in the housing market.
The Seattle Times reports the opposite effect locally: ‘Panicking’ Seattle home buyers, spooked by rising interest rates, rush to buy | The Seattle Times
The Seattle Times reports the opposite effect locally: ‘Panicking’ Seattle home buyers, spooked by rising interest rates, rush to buy | The Seattle Times
So are you guys reducing equity percentages by selling equity investments and buying fixed-income or bond investments to rebalance?
That's not what I'm doing but I'm pretty sure the folks who manage my Wellesley and Wellington funds are.So are you guys reducing equity percentages by selling equity investments and buying fixed-income or bond investments to rebalance?
The Seattle Times reports the opposite effect locally: ‘Panicking’ Seattle home buyers, spooked by rising interest rates, rush to buy | The Seattle Times
That's not what I'm doing but I'm pretty sure the folks who manage my Wellesley and Wellington funds are.
My concern though is that interest rates are expected to rise, meaning bond prices should continue to decline.
Newspapers are generally not good sources of information about what is really happening in the local real estate market. Numbers of active listings, pendings, and recently closed sales are more informative. Active listings are up here in Silly Valley. Multiple offers are down dramatically.
My concern though is that interest rates are expected to rise, meaning bond prices should continue to decline.
You'll drive yourself nuts if you worry about the short-term relative performance of the different segments in your portfolio. Either you time the individual components, or you rebalance when assets diverge. If you are holding bond funds for a long time, they will eventually catch up and be there for you when stocks sell off.