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Chuck Jaffe: Why Most Investors Should Ignore Janet Yellen, Donald Trump And The Dow
I'm not a fan of rebalancing for the sake of rebalancing (and I expect to be very stock-heavy until they put me into the ground) but I agree completely that Yellen, Trump, CNBC, and economists generally are best ignored as part of a good investing strategy.
I think we're increasingly seeing hot money chase trends, driving sectors to unsustainable highs and lows. However, these trends persist for very long periods. Riding the trends if you're a smart (or lucky) momentum investor is very rewarding.
My biggest problem in the past has been bailing when something gets hot, believing that locking in a 10-20% gain was to my advantage. Of course, in a market where hot funds and sectors can tack-on 15-20% gains year after year, that's a self-defeating practice.
I'm increasingly moving to a buy and hold strategy focused mostly on good balanced and allocation funds. Some rebalancing, but less than in the past. 75% is so allocated to that strategy now and I'll likely raise it to 80% by year's end.
@ducrow - Thanks for the question. Following is my Buy & Hold group. Many are of the balanced and allocation variety. A lot of this evolved over the years by placing square pegs (funds already owned) into round holes (different sleeves within the plan) ... so it makes sense to me, but wouldn't be a model I'd recommend to anyone else,
Multi-Income - RPSIX 18-22% Balanced - RPGAX and DODBX 18-22% combined Hybrids - OAKBX, PRPFX, and TRRIX 12-15% each Hard Assets - (currently 3 funds) about 10% combined Global Income - (currently 2 funds) about 10% combined
Above represents approximately 75% of retirement assets. Rebalancing is minimal.
More to your specific question Balanced funds: DODBX and RPGAX Allocation funds: RPSIX and TRRIX OAKBX is sometimes called balanced. I consider it "moderate allocation - equity." PRPFX is sometimes called allocation. I'd call it a "specialty" fund. Outside Buy & Hold, I own PRWCX. It is sometimes called balanced. I'd call it "moderate allocation-equity".
Comments
Agree............rebalance one's own portfolio as needed; not just at 12:30pm on some day into the future, for a given year.
Regards,
Catch
My biggest problem in the past has been bailing when something gets hot, believing that locking in a 10-20% gain was to my advantage. Of course, in a market where hot funds and sectors can tack-on 15-20% gains year after year, that's a self-defeating practice.
I'm increasingly moving to a buy and hold strategy focused mostly on good balanced and allocation funds. Some rebalancing, but less than in the past. 75% is so allocated to that strategy now and I'll likely raise it to 80% by year's end.
Multi-Income - RPSIX 18-22%
Balanced - RPGAX and DODBX 18-22% combined
Hybrids - OAKBX, PRPFX, and TRRIX 12-15% each
Hard Assets - (currently 3 funds) about 10% combined
Global Income - (currently 2 funds) about 10% combined
Above represents approximately 75% of retirement assets. Rebalancing is minimal.
More to your specific question
Balanced funds: DODBX and RPGAX
Allocation funds: RPSIX and TRRIX
OAKBX is sometimes called balanced. I consider it "moderate allocation - equity."
PRPFX is sometimes called allocation. I'd call it a "specialty" fund.
Outside Buy & Hold, I own PRWCX. It is sometimes called balanced. I'd call it "moderate allocation-equity".