Thinking about Market Timing

[Donzo]

I recently went to a more conservative AA of 50/50 and feel good about it. Of course you will miss some potential upside $ if the market keeps climbing (the wall of worry). But if it tanks you will be in a better place and have dry powder to throw in.

 

[clifp]

So, in case anyone is interested in the followup to the story, here's what happened. I did some more careful calculating and found that the latest run-up of the last few weeks has pushed my target 70/30 Equity/Fixed allocation into actually being 80/20. Maybe that was why my vague sense that something was too risky for my taste was tingling so much. I rebalanced back to my target 70/30 and I feel much better. Thanks for all the timely advice.

Yes that is not market timing it is rebalancing, and perfectly acceptable. I believe the official rules for the "I am not dirty market timer club". Are you are allowed to rebalance up to quarterly (although there is no benefit doing more than once a year). And change your asset allocation once a year.

Of course I have never been a member of the club, so the rules probably have changed