So my AA rebalancing strategy has been to basically review my holdings in early January by looking at both the individual performance of individual funds/ETFs and overall AA relative to my target (in my case 70/30). I generally make my buy/sell orders with a limit basically at the last traded price that day as opposed to market orders... probably just to appease my need to employ may "market skills". However, it doesn't always pan out as the market may not cooperate (Good or bad) in the GTC order time. In my case this year, about 7% of my equity buys did not occur because the market just kept running up and I kept my limit order in place... of course thinking the market would dip which it never did. So fast forward to today and I am sitting with roughly 7% (maybe slightly less now due to current equity valuations) earmarked for equities in cash now afraid to employ because the market feels over frothy (my inner market timing skills say don't be a fool and put it in NOW!!). In the past when I have completed my rebalancing, I would general set & forget occasionally taking a peak at overall performance, but letting it ride until the end of the year.
Questions...
How often do you rebalance and what are your triggers?
If you were me, would you just invest the 7% now regardless of current market pricing or would you feel the urge to hold in cash for a dip and play market timer?
With continued high probability of multiple interest rate increases are you allocating more of your bond allocation in cash or staying in short/medium bonds/funds/ETFs?
I'm not RE yet, still 3 - 4 yrs out so still in accumulation mode in case that is relevant to a specific response.
Questions...
How often do you rebalance and what are your triggers?
If you were me, would you just invest the 7% now regardless of current market pricing or would you feel the urge to hold in cash for a dip and play market timer?
With continued high probability of multiple interest rate increases are you allocating more of your bond allocation in cash or staying in short/medium bonds/funds/ETFs?
I'm not RE yet, still 3 - 4 yrs out so still in accumulation mode in case that is relevant to a specific response.