I follow the CCP for the most part, been adding stocks lately as market is at all time highs. I know i shouldn't time, but i've got some windfalls and the idea of buying index funds that are at multi-year highs just doesn't sit well. Maybe i'm wrong on this.
A few thoughts here... I think you know most or all of this, but something's not clear yet, so I'll type to try to clarify.
Prepackaged stocks (a fund) or individual picks are all stocks. By buying individual stocks or different funds, you're still buying stocks at a high-to-date.
With stocks at a high-to-date, your rebalance will likely involve increasing the percentage of bonds -not picking individual stocks and additional funds.
Via CCP model, you've already invested in thousands of stocks. So you're looking now at
picking individual stocks over and above those. Some on the forum do that. However, unless "x% in individual, hand-picked stocks and funds" is in your Investment Policy Statement, this wouldn't be considered a portfolio rebalance. Rebalancing is adjusting your allocations to match the model you are using (CCP) or wrote out for yourself (Investment Policy Statement).
Does your Canadian index fund not already include Manulife, for example? If so, what prompts you to want to put even more in that?
Some of the items your considering are also funds (groups of stocks). What's prompting you to select another fund on top of the ones recommended by CCP?
If you are committed to picking individual stocks over and above the thousands of individual stocks you already own via your index funds...
Have you written your Investment Policy Statement?
If so, what does it set out in terms of:
*what percentage of your overall portfolio you will allocate to individual stocks?
*the information per individual stock you will need in order to select one?
A very well-researched pick may make sense.
An individual stock picked by emotion, or a stock being at an all time high, is profoundly discouraged.
In this thread, it sounds like you're not looking at rebalancing a portfolio, but rather selecting individual stocks and additional funds (vs increasing your investment in the funds you already have, representing thousands of stocks). If so, I recommend changing the thread's title to say "help picking stocks". Then you might get feedback on that.
