Asset management question for Cut Throat

[TargaDave]

Currently I am 50% in Cash and 50% mostly in the S&P 500. If the market drops in the next couple of years I'll invest, If it goes sideways I'll go the TIPS, Bond route, If the Market gains I'll be selling and holding cash waiting for an opportunity.

No Debt, House paid for, Just having a good time! Going fishing on the cheap next month in British Columbia!

Hi Cut-Throat, I noticed one of your early posts from mid-2003. So are you more than 50% cash right now??

I tend to be over conservative these days and use an advisor to help balance the picture. I'm certainly not advocating it to anyone on this site and still grapple with the issue myself. Just trying to understand how you update your thinking on asset management over time.

Thanks in advance -TargaDave

 

[Cut-Throat]

Dave,

After reading 'Four Pillars of Investing' in early 2004, I altered my portfoilo into asset classes. I am still in Stocks 55% and Fixed 45%.

I plan on using the 110 - Age for Allocation. Hence I'm 54 now so stocks should be around 55%.

Other Asset classes I'm in are SP500, Large Cap Value, Small Cap Value, Emerging Markets, Pacific Rim, European, Total Intl and REITs.

Not equal percentages though. Total International Investing is about 12% of Portfoilo.

Mostly Vanguard Index Funds. - In hindsight, I might have gone their Target Retirement Fund and Let the Vanguard Computer rebalance for me. I now rebalance yearly.

 

[TargaDave]

Many thanks. Guess I have my reading assignment. Two more quick questions before I delve in.

Am I correct in assuming no individual stocks for you?
I understand rebalancing to maintain allocation percentages and adjusting based on age, but do you ever modify asset class percentages based on your view of price and micro-macro conditions?

Thanks again.

 

[unclemick]

The sneaky part of asset allocation - when you rebalance - you automatically are taking market conditions into account - by rebalancing into the 'better buy' - relative to your other asset classes.

Of course - if you lose discipline, get greedy, or emotional - welllllll? - heh, heh, heh.

Then there are old turds(no names please!) - who just own Vanguard Lifestrategy(Target Series is also good, even - psst Wellesley, or at a stretch - STAR if you are very young).

Those trusty computers at Vanguard just rebalance their little hearts out - even while you sleep, go fishing, watch football or whatever.

 

[Cut-Throat]

Many thanks.  Guess I have my reading assignment.  Two more quick questions before I delve in.

Am I correct in assuming no individual stocks for you?
I understand rebalancing to maintain allocation percentages and adjusting based on age, but do you ever modify asset class percentages based on your view of price and micro-macro conditions?

Thanks again.

No more individual stocks for me. - And I do not plan on modifying asset class %'s