Wondering if anyone is rethinking their long term asset allocation as they get jitters during a down turn. It's good to be honest with yourself so that you aren't overly stressed. Of course now is not the time to make that change, but it's worth noting it and perhaps adjusting it once things have calmed down in the markets.
I think a lot of us in this community are either 1) are too young to have experienced the great recession pains, or 2) near ~40ish and maybe didn't have much at stake back then. I fall into the latter camp. I experienced the job loss and massive job pains, but I didn't have any exposure in the markets.
Unfortunately, figuring out what you're comfortable with in terms of asset allocation might require feeling the pain of a downturn. Sure, we can think about what we're comfortable with on an intellectual level, but I think real world experience is what really solidifies an understanding. Now is probably the best time to truly evaluate what asset allocation you think is good for you in the long term. My own allocation is ~ 70/30, and fortunately I think it's about in line with what I'm comfortable with given my current net worth -- maybe some minor calibration. That said, as my portfolio increases, I will very likely tweak that down to something like 50/50 and will absolutely want to diversify into rental properties. This particular downturn has me really thinking about how much it would be nice to have additional income streams like rental properties. When stocks are hammered and income or job is at risk, these are the times you're happy to have that third income stream. Additionally, I'm really thankful that I've set aside a large emergency fund that is not exposed to equities. So basically what I've learned is 1) I need to develop additional passive income streams, and 2)long term plan as my portfolio gets more robust will be to slowly lower equity exposure.
