Gyroscopic Investing

Hi,

This week is my planned DCA investment round (every month 20% of the amount to invest). I have a Golden Butterfly portfolio (mixed EU and US). I have currently 40% invested, and the allocations are currently:

Gold 24%
TSM 16%
SCB 15%
LTT 23%
STT 22%

So still within the bands, but only just (assuming 14%/26% bands).

Now I am adding to the portfolio, I could invest 5 equal parts or make sure the resulting allocations are all 20% again.

What are the pros/cons of each approach?

PS Or should I wait until the market calms down and stay in cash with the remaining money?

Personally, I always put fresh cash in the underperforming asset. So the last couple weeks that's all been to stocks. It's like doing small rebalancing as you go. There's no point in waiting. If you wait for the chaos to end you're going to be buying stocks at a higher price than you would this week.

pmward wrote: ↑Mon Mar 16, 2020 11:37 am Personally, I always put fresh cash in the underperforming asset. So the last couple weeks that's all been to stocks. It's like doing small rebalancing as you go. There's no point in waiting. If you wait for the chaos to end you're going to be buying stocks at a higher price than you would this week.

Thanks, that makes sense!

pmward wrote: ↑Mon Mar 16, 2020 11:37 am If you wait for the chaos to end you're going to be buying stocks at a higher price than you would this week.

What does your crystal ball say about my relationship with my S.O.. Are we going to make it?