Hey all,
I've just gotten into managing my own portfolio over this last year. I'm 36 years old. The house is paid off, and my wife and I are on the verge of dumping a significantly higher percentage of our income into our stash (just need to save up another 4 grand to pay off some student loans that will be coming due next July). I figured it was therefore high time that I took a stab at constructing an investment allocation plan that I can re-balance when things get 5% or more out of whack.
I've read Benjamin Graham's sacred text and I'm doing what I can not be overly speculative, but it does seem that a bit of re-balancing between stocks and bonds, depending on cyclical market changes, is not wholly unwise. In light of that, how does the following strike you seasoned investors?
During the early stages of a Bull Market and the mid to latter stages of a Bear Market:
100% Equities
25% International (VEU)
75% Domestic (30% VBR, 22.5% VUG, 22.5% VTI)
During the latter stages of a Bull Market and the early stages of a Bear Market:
25% Bonds (BSV, BND)
75% Equities
19% International (VEU)
56% Domestic (29% VBR, 13.5% VBR, 13.5% VTI)