IMHO it's not that simple. "Down 10% one day so you buy" you say. What if it stays flat for a while? You stay out of the market? What if during this period the market goes up 10%? You lose all gains.InsuranceGuy wrote: ↑Thu Apr 02, 2020 1:08 amRebalancing during times of high volatility can be very profitable. Down 10% one day so you buy, next day up 10% sell, etc. In times of low volatility it does seem best to let it ride until a rebalance band is hit.
IG
Question on adding new money
Moderator: Global Moderator
Re: Question on adding new money
Re: Question on adding new money
In normal times, you could set up an auto-investment program to contribute to all assets equally.
I did that at first, but switched to adding new money to cash. Then I use that periodically to buy lagging assets. So much simpler and it helps prevent taxable events, because I rarely have to rebalance.
I did that at first, but switched to adding new money to cash. Then I use that periodically to buy lagging assets. So much simpler and it helps prevent taxable events, because I rarely have to rebalance.