Cash has exceeded my rebalance band, but....?

[Kbg]

Jh,

Short term yes, long term categorically false...and particularly so if real vs nominal is negative as it is now.

(And yes age is a factor...but as a general rule the above is a better principle to guide your portfolio by.)

Edit...I’m only referring to item #2.

[jhogue]

Kbg,

1. You make an excellent point about accounting for tax implications.

2. I absolutely agree that you want to have a long term strategy for Cash, which is precisely why I am such a fan of I bonds.

[buddtholomew]

but the danger is that you keep tweaking the portfolio as you go, and end up with an active management strategy.

It was very tempting to rebalance before recent stock turmoil had started. My cash and stocks portions of 4x25 HBPP were somewhere close to 27-28 ish %, while gold and LTTs approached low 20th %. Now it is too late :-) After all, it is just easier to do nothing: will stick with 15/35% bands as the doctor prescribed.

Darn it. I have mentally decided 10% cash is the right spot for me long ago, so I will rebalance. Then I also have to stick to my guns and do an annual rebalance in Jan.

I don't see this as a negative at all, but rather a win-win.
Where does it say that you have to re-balance to established percentages with 1 TRADE?
You are moving towards your 10% allocation. Period. Well done.

I'll also add that I used the last few weeks to now have 50% SPY/50% SCV as my stock allocation from cash as well - 30/20/15/35 finally.
Curious what others re-balancing bands would be for a 10%, 15%, 20% allocation.
Is it still % allocation x .4 such that 25*.4 = 10 which is the re-balance band for 25% allocation using 15/35 method.

[Cortopassi]

Was going to pull the trigger today, but did not have time. Sometime tomorrow I hope.

[Cortopassi]

And it hasn't happened yet because of time, but of course it is trending back to where I thought it would, needing to dump more into gold and less into stocks. Ahh the black hole that is gold....

[buddtholomew]

And it hasn't happened yet because of time, but of course it is trending back to where I thought it would, needing to dump more into gold and less into stocks. Ahh the black hole that is gold....

Same story as ever...at least this time I sold gold and bought SPY/SCV...

This portfolio doesn’t work since you should be buying stocks when they decline not sit in Gold and LTT’s...what a dump.

[Ugly_Bird]

This portfolio doesn’t work since you should be buying stocks when they decline not sit in Gold and LTT’s...what a dump.

Not so today? Let's keep looking every... hmm.. 10 minutes. :-)

[Cortopassi]

It is a strange commodity. And they'll try to link its rise to some event, which is almost 100% inaccurate.

[Ugly_Bird]

It is a strange commodity. And they'll try to link its rise to some event, which is almost 100% inaccurate.

No, no, no. They told you it would happen! :-)

[Cortopassi]

I have not rebalanced yet, and one of the reasons I dropped cash to 10% was because it has been paying nothing for a long time. Now the cash I have at Ally is at a 2% interest rate, and I wonder if that warrants raising cash a bit higher than 10%.

Tinkering around the edges...darn it.

[jacksonM]

Goldman Sachs is saying it's time to "Boost Cash".

So is it really a good idea to sell stocks and increase cash right now or is their advice part of the scheme to increase revenues from transaction fees by having people jump in and out of the market?

Considering the source, I'm going with the latter.

[Kbg]

Whatever your plan is do that.