bumping to ask a question and didn't think it needed another thread.
since I've decided to call this a flash correction... since it seems to recover fairly quickly, it seems like it wasn't worth the bother to well, bother with. Over on bogleheads and online, I see people asking if they should have used the correction to "rebalance". In a flash correction (not that they wouldn't have known it would end so quickly), is there a point to rebalance if you normally do it at year end? I mean if they decided to rebalance last week, and sold bonds to buy stocks, and now all of the sudden, their stocks are "out of balance" again, they need to rebalance yet again. This seems to create another taxable event.
So like with dollar cost averaging and such, do people really "time" the market to rebalance when they think it is going to be a down market? Or does rebalancing on a set date keep with the "staying the course" plan? IE, the plan is 80/20 and to invest once a year on the new years week. And also use that time to rebalance. No matter what else happens during the year, don't touch the account. If that was the plan, does rebalancing outside that first week time frame count against the investor, is it market timing if all you do is rebalance?
I didn't rebalance, just wondering about the timing of doing it.