Weren't the 1980's/1990's a case of sell some shares to buy more gold only to see the price of gold decline further ... for two decades. One of the assets will always tend to be down and perhaps repeatedly declining for long periods.flyingpylon wrote: ↑Thu Jun 17, 2021 11:17 amSo much of investing is psychological and emotional. After hanging out here for a decade or so, I've seen various posters come and go. It's apparent that some folks always need to feel like they're "winning". Like every single day. That's fine, but that mindset is not a good fit for PP-style portfolios because some "worthless" asset will always be holding them back and provoking outbursts on internet forums.
Fundamentally you're rewarded for taking on risk exposure. No risk, no reward. Over the 1980/1990's whilst the price of gold declined rebalancing would have seen you accumulate multiple more ounces of gold. When that down-trend reversed so some of those accumulated ounces of gold were released to buy more stock shares/whatever.
Some say long dated treasury have only one way to go, and have been saying such for years. You could try your luck at selling completely, try and time the market, but that usually doesn't work out as expected. Selling out means having to time re-entry again, better to just hold and where one or more of the assets tends to more than offset the losses of the down asset(s) than it is to completely dump one of the assets and hope that you'll buy back in again at a appropriate time - which more often you wont.