Gyroscopic Investing

record high of 1,782.00

Let us see where it goes from here...

It was cash that triggered the rebalance, not s&p 500.

I assume you are in the decumulation phase.

Was in perfect balance at the beginning of the year but also hit the re-balancing band with stocks > 35% today.  This isn't totally due to the fact that stocks have done so well but also because all of our 401k money (my wife's and mine), is set to go into stock index funds.

Will probably wait until mid-January to re-balance as originally planned. Has there ever been a stock market crash during the holiday buying season?

I am accumulating but I also like ns2 add to stock through 401k contributions so it was above 25% when cash went over 35%.

I still have to buy bonds and gold now to bring them up to 25%.

Personally I don't see any reason not to wait for stock market relative strength to decrease to rebalance. What harm could come from it? Was that a triple negative?

Reub wrote: Personally I don't see any reason not to wait for stock market relative strength to decrease to rebalance. What harm could come from it? Was that a triple negative?

Just a double, I think. It looks like you're saying to wait. 

My stocks are at 32% and I'm itching to do my 2nd rebalance out of stocks in 2013. I doubt that I will wait for exactly 35%.

The fat lady sang at the opening bell on the NYSE this morning.
Who knows ?

dualstow wrote: My stocks are at 32% and I'm itching to do my 2nd rebalance out of stocks in 2013. I doubt that I will wait for exactly 35%.

Some words on that subject from someone who's opinion I respect...

"Don't get fixated on numbers and percentages. Avoid rebalancing as much as possible because of the taxes. But if your at a point where you are not comfortable and you think you need to rebalance, then do it."
-Jack Bogle

new high

1,790.62

i guess it is going to make 1800

I have rebalanced one month ago. Every cell in my brain says: don''t. But it has works very well in the past. Just keep to your strategy.
It is the hardest aspect of investing.

Thomas Hoog wrote: I rebalanced one month again. Every cell in my brain says: don''t. But it has works very well in the past. Just keep to your strategy.
It is the hardest aspect of investing.

I seem to have adopted a "rabbit in headlights" strategy this year, not good but not (yet) bad either. (Cash is way over 35% but stk/gld is 30/20)

I'm having difficulty thinking my way out of it, but I'm kind of comfortable I'm not doing significant damage either.

I should probably congratulate myself for picking a low maintenance strategy that can cope with my prevarication  

Good advice indeed. While I'm "itching", I guess I'm not uncomfortable. Having rebalanced once, I am prepared to accept that stocks may crash before I reblance a second time.
I think. 

Ad Orientem wrote:

dualstow wrote: My stocks are at 32% and I'm itching to do my 2nd rebalance out of stocks in 2013. I doubt that I will wait for exactly 35%.

Some words on that subject from someone who's opinion I respect...

"Don't get fixated on numbers and percentages. Avoid rebalancing as much as possible because of the taxes. But if you are at a point where you are not comfortable and you think you need to rebalance, then do it."
-Jack Bogle

gizmo_rat wrote:

Thomas Hoog wrote: I rebalanced one month again. Every cell in my brain says: don''t. But it has works very well in the past. Just keep to your strategy.
It is the hardest aspect of investing.

I seem to have adopted a "rabbit in headlights" strategy this year, not good but not (yet) bad either. (Cash is way over 35% but stk/gld is 30/20)

I'm having difficulty thinking my way out of it, but I'm kind of comfortable I'm not doing significant damage either.

I should probably congratulate myself for picking a low maintenance strategy that can cope with my prevarication

OK, so LLT's are below the 15% allocation, correct?

buddtholomew wrote:
OK, so LLT's are below the 15% allocation, correct?

No they're at 25%, I'd rebalance if I hit a (non cash) rebalance point. I've been uncomfortable with all the assets classes this year, so accumulating to cash.

Would have been a smart move if I had a trigger for action, but sometimes I have to see my irrationality written down to appreciate it for what it is.