A Canadian's random thoughts on personal finance

Oct 12, 2008

Rebalancing with a vengeance

Michael James asks, Do You Have the Nerve to Rebalance Right Now? My answer is a resounding "yes!"

At the start of this year, I calculated that we had a 57:43 split between stocks and bonds+cash, which I considered to be too conservative for us. However, the market being what it was back then, I thought stocks were overpriced, so I held off on rejiggering our assets.

My first rejiggering happened on September 9, after the TSX had fallen from 15,000 to 12,000. The second occurred on Friday, when the TSX dipped below 9,000. Now our ratio is 76:24, which is where I've wanted it for months; and I'm delighted that there are folks out there willing to sell me stocks at such bargain prices.

1 comment:

Michael James said...

Thanks for the link. In the long run I'm optimistic that your shift into stocks will look like a good idea.