FYI: STOCK MARKET indexes are at all-time highs, share prices are expensive relative to earnings and global economic growth is slowing. Is it time to consider rebalancing our portfolios and perhaps adopting a more defensive approach?
If you believe in rebalancing—maintaining a relatively consistent allocation to stocks and bonds—then, at some point in this bull market, you must sell stocks. I am hugely hesitant to do so, for three reasons. First, I am fundamentally a buy-and-hold forever investor, unless I need cash, so I don’t typically rebalance. Second, I hate paying taxes on stock gains in my taxable account. Third, I have no great ideas for what fixed-income alternatives I might buy, given today’s low interest rates.
Regards,
Ted
https://humbledollar.com/2019/07/cashing-in/
