Wanted to ask what the Bogleheads' opinion is on changing one's asset allocation during a (theoretical) market drawdown.
I'm currently in my late 30s, with an asset allocation approaching 70/30 VWCE/VAGF (been slowly buying more bonds from 75/25 a couple of years ago to re-balance to the newly chosen AA, which I plan to hold throughout my 40s).
I've been thinking lately what I would do in a hypothetical market drawdown. Say if the market drops by 20%, I was considering selling some VAGF and putting it into VWCE, to go to something like 80/20. Theoretically, both asset allocations (70/30 and 80/20) would be appropriate for someone my age. Then down the road, if stocks go up, I can re-balance to roughly the current 70/30 allocation.
I know it's market timing and you should do nothing and "just stand there" when there's a crash, as per Jack Bogle, but it's something I've been thinking about lately, with the market at all-time highs.
I'm currently in my late 30s, with an asset allocation approaching 70/30 VWCE/VAGF (been slowly buying more bonds from 75/25 a couple of years ago to re-balance to the newly chosen AA, which I plan to hold throughout my 40s).
I've been thinking lately what I would do in a hypothetical market drawdown. Say if the market drops by 20%, I was considering selling some VAGF and putting it into VWCE, to go to something like 80/20. Theoretically, both asset allocations (70/30 and 80/20) would be appropriate for someone my age. Then down the road, if stocks go up, I can re-balance to roughly the current 70/30 allocation.
I know it's market timing and you should do nothing and "just stand there" when there's a crash, as per Jack Bogle, but it's something I've been thinking about lately, with the market at all-time highs.
Statistics: Posted by earlgrey1 — Wed Aug 21, 2024 11:20 am — Replies 1 — Views 80
