| Are you staying fully invested in your portfolio or making any changes? Just curious. I've been around a long time and used to believe in all the elements of portfolio management, including dollar cost averaging, rebalancing, staying invested, don't engage in timing, etc. It was all a good model when the Fed wasn't so involved. But now that rates are at rock bottom and going lower and QE is now a common place policy tool, fundamentals are completely divorced asset prices. So you what worked over the last 30 years can't be relied on for the next 10-20. Stock and bonds both are way overpriced. I think bonds can still go higher in price and yields lower, but we're already getting toppy, so now might be a good time to start thinking about not so much getting out of bonds, but definitely shortening up the duration of what you hold. So if you need a bond allocation, shorten it up. If you need a stock allocation, then move to deep value stocks, the larger company the better. For me, I've been out of stocks since summer of 2017 and have made a great return on bonds, while stocks have gone nowhere since Jan 2018, but have given us great volatility. Anyway, what are you doing? Staying pat or making any moves? |
