Author Topic: Need help for bonds rebalancing strategy  (Read 495 times)

max9505672

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Need help for bonds rebalancing strategy
« on: December 26, 2018, 03:34:03 PM »
Hello,

Quick introduction, I am 28 y.o. in accumulation phase (and will be for a long time) that began investing about 2 years ago with a AA% of 90% equity and 10% bonds. Shortly after that, I decided to go 100% and because the market was good, I decided not to sell the bonds and only to dilute them by buying stocks only for the next year and a half.

With the current market, I am currently looking at a logical way to rebalance my AA% to 100% equity and get rid of my bonds. I know this sounds like market timing, but I still have around 6.5% of bonds that I would consider selling to buy more equity and I think it's better to do it while the market is going down than while it's going up. Obviously, no one knows if it will go much lower or not, so that's the reason I'd need input on how to do this.

Would it be better to sell everything at once or gradually sell some of them over a pre-determined period of time?

Thanks,
Max

Eric

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Re: Need help for bonds rebalancing strategy
« Reply #1 on: December 26, 2018, 03:47:20 PM »
Would it be better to sell everything at once or gradually sell some of them over a pre-determined period of time?

Depends on if the market goes up or down during your period of time.  :)

But really, a few percent of a portfolio that you just started a couple of years ago cannot be much money (in the grand scheme of things).  If you want a 100% stock allocation, then do it right now.

beee

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Re: Need help for bonds rebalancing strategy
« Reply #2 on: December 26, 2018, 03:51:43 PM »
Market goes up on roughly 2/3 of all days. So, your best bet is to just sell all the bonds at once and buy stocks with this lump sum