In light of recent market highs, high PE ratios (both trailing 12 month and Schiller), and future uncertainty regarding US policy, I decided to reallocate 10% of my portfolio from equities to bonds/cash.
My asset allocation is now: 60% equities, 25% bonds, 6% cash, 9% REITs. Still pretty aggressive, but below my planned asset allocation of 75% equities, 15% bonds/cash, 10% REITs.
This reallocation was all in tax-deferred/Roth accounts so there were no capital gains or other tax consequences.
I will begin to reallocate towards equities once the market is down 15% from current levels and/or the US policy picture begins to stabilize (obviously this is a subjective criteria).
Anyone else doing something similar?