That seems like almost the opposite…
of a portfolio rebalancing strategy, which was recommended to me by two colleagues I thought were pretty financially savvy.
Under that, you have a target % for various asset classes… index, growth, international, bonds, REITs, etc. When it is time to rebalance (every 3-6 months), you move money from assets that have performed better to those that have not.
The thinking behind this approach is that through all the ups and downs of the markets, you are consistently taking profits on what’s up, and putting that money in what’s down (and possibly undervalued).
I’m not saying it’s a better strategy… just interesting your guy is suggesting close to the opposite.
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In response to this post by vt90)
Posted: 10/27/2021 at 2:59PM