I think I'll rebalance today

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ochotona
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Re: I think I'll rebalance today

Post by ochotona » Sat Feb 25, 2017 2:35 pm

Celebrate the 2-bagger!
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Re: I think I'll rebalance today

Post by dualstow » Wed Mar 01, 2017 9:03 am

...maybe I'll drag my feet until I'm a little closer to 35% in stocks.
< rationalized greed >

FORGOT TO SAY: after hearing Buffett's comments and then Trump's speech last night.
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Re: I think I'll rebalance today

Post by Cortopassi » Wed Mar 01, 2017 10:38 am

dualstow wrote:Time for another trim. My S&P shares are just below doubling, 99.93% Other stock funds are below that.
If I trim now, this trim combined with the August one will form a true rebalance.
No regrets if the market still goes up.
Dow at 25K would be nice.
dualstow wrote:I'm nowhere near the 35% bands, more like 29-something. But, it feels like the right time to invoke a seasonal rebalance as it's been well over a year since I really sold stocks.

I hope stocks continue to climb. Dow at 20K would be nice.
Dualstow, what timeframe did it take for your S&P shares to double? I'm not clear on what you mean by double, even if I go back 5-10 year charts, I am not seeing a double on SPY? Do you mean a double of a band range?
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dualstow
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Re: I think I'll rebalance today

Post by dualstow » Wed Mar 01, 2017 10:44 am

My initial investment in Vanguard's S&P fund was a paltry 3,000 in 2008, and I had it on auto-pilot after that. Sometimes I changed the timing of contributions between every week and every month, and sometimes I changed the amount of contributions between a few hundred $ at a time and $1,000 at a time, so not completely auto, but it kept buying steadily.

I would have to look up when I stopped buying, but it has as much to do with switching to small-cap value as it did hitting the proper allocation. And again, my holdings in non-S&P equity are not at double.

But I did mean a true 100% gain in value on the S&P shares. The holdings are worth 2x the cost.
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Re: I think I'll rebalance today

Post by Cortopassi » Wed Mar 01, 2017 11:17 am

Very nice. I hope to echo this in some holding over the next few years. Not bonds, at least not today.
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Re: I think I'll rebalance today

Post by dualstow » Wed Mar 01, 2017 11:53 am

Yeah, poor bonds. O0
I'm really feeling that "angst" -- high class problem, I know -- regarding whether to sell some S&P or just make the pp larger.

All the data, the same data that favors going all in with lump sum investing vs dollar cost averaging, says it would be silly to take profits just because some magic number (which is not a rebalancing band) was hit, and equally silly to think that money will go back into the market at the right time, when stocks have crashed.

At the same time, I know my heart is going to sink when stocks start to decline if I haven't trimmed.

The solution is probably to do a meaningless, inconsequential small trim for psychological purposes.
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Re: I think I'll rebalance today

Post by sophie » Sun Mar 05, 2017 10:50 am

Hey dualstow, did you sell those stocks? and what did you do with the proceeds?

I've managed to set up recurring monthly purchases of all four assets in equal amounts, including bonds. I'm nowhere near a rebalance, thanks to a recent partial "rebalance" done by unevenly dividing new purchases over the past few months. Given the Fed's plans for the next two years I'm wondering if I did the right thing...but would rather not try to make bets as we all know what's happened to the Fed's plans in past meetings.
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Re: I think I'll rebalance today

Post by dualstow » Sun Mar 05, 2017 11:30 am

I did not,Soph. It seems silly to do so since vp+pp is already at 50% stocks, which is what I want.

I'll probably unload a few K for the psychological benefit.
I'll put it into treasury notes if Yellen gives us tasty yields. If not, intermediate muni bond fund in vp gets it. Or IBonds, which I've skipped for several years.
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Re: I think I'll rebalance today

Post by sophie » Sun Mar 05, 2017 12:13 pm

Good rationale, but sounds like you'd just rather do nothing - always a good choice. I'm doing much the same thing. Just going to wait for those rebalance bands to trigger.

It'll be interesting if the 1 year T bill starts paying better than 1 year CDs, which is already almost the case. Especially if you take state/local taxes into account.
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Re: I think I'll rebalance today

Post by dualstow » Sun Mar 05, 2017 1:45 pm

That would be nice. I'm usually too lazy tobother with CDs.
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Re: I think I'll rebalance today

Post by dualstow » Mon Mar 06, 2017 4:39 pm

It's funny, Desert. Your message came in while I was reading a paper-mailed offer from a bank. 1% interest plus a $200 bonus if I deposit $10K. O0
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