RunningBum
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
- Joined
- Jun 18, 2007
- Messages
- 13,249
Do you consider rebalancing due to asset allocation a form of market timing?
+1If it's done while following a pre-established mechanical rule, then I don't think rebalancing is market timing. If it's done in response to fear or greed, then I think it is market timing.
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If it's done while following a pre-established mechanical rule, then I don't think rebalancing is market timing. If it's done in response to fear or greed, then I think it is market timing.
I suppose it depends which way you view it. The intent of that answer is "Yes, it's market timing if you rebalance your portfolio whenever if it X% out of you AA range. No if you do it only on an regular schedule only."I'm confused by the options. For example, isn't
"Yes, but only if done when your portfolio is out of balance"
supposed to be
"No, but only if done when your portfolio is out of balance"
??
You realize that's the complete opposite of what you said 15 or 20 times in the other thread, right? Unless I worded the poll incorrectly.I voted no, never.
I theorize that Dex is actually the 1 vote for "yes, always".You realize that's the complete opposite of what you said 15 or 20 times in the other thread, right? Unless I worded the poll incorrectly.
You realize that's the complete opposite of what you said 15 or 20 times in the other thread, right? Unless I worded the poll incorrectly.
Curious about that answer, and really, there is no wrong answer, but I wonder how much fear or greed there is in getting back to your 60/40 or 50/50 or whatever AA?If it's done while following a pre-established mechanical rule, then I don't think rebalancing is market timing. If it's done in response to fear or greed, then I think it is market timing.
Yeah, I should've been more clear that I meant that you are rebalancing to put your portfolio in line with your planed AA, not changing it to a new AA.Yes, but only if you change your target asset allocation based on current perceived market conditions - especially if you plan to return to your "regular" allocation when market conditions appear to improve.
Otherwise, no.
Audrey
What was the question?
Depends - do you do it only when they are out of balance or when you think road conditions might be changing soon?Should I go to AAmco to have my tires rebalanced.
That's the one I would have voted for, RB.I suppose it depends which way you view it. The intent of that answer is "Yes, it's market timing if you rebalance your portfolio whenever if it X% out of you AA range. No if you do it only on an regular schedule only."
Are we having an AA meeting here?