Mass Psychology Supports the Pricey Stock Market

Re:Mass Psychology Supports the Pricey Stock Market by mooreds on Monday September 18, 2017 @09:56PM (#15281230)

I like the forced selling of my winners via annual rebalancing. I have something like 110-my age in stocks (and other risky investments, like reits) and the balance in bonds. Every December I rebalance. Or throughout the year when two things happen: 1. I have time to plug the numbers into my spreadsheet and 2. any asset class is ahead or below asset allocation by 5% or more.

I am pessimistic by nature and the USA has its issues, but there just isn't an economy in the world that I see performing as well as the USA (part is history, part is demography).

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Re:Mass Psychology Supports the Pricey Stock Market by refurb on Monday September 18, 2017 @10:44PM (#15281403)

We're doing the same thing! I rebalance every year or when I put more money into my investments. I love the approach because it automates "sell high, buy low". When stocks go up, you sell some and buy bonds, and vice versa.

It's worked well for me for the past ~15 years.

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Re:Mass Psychology Supports the Pricey Stock Market by maxxxxx on Tuesday September 19, 2017 @02:33PM (#15287482)

Can you elaborate a little more on this strategy?

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Re:Mass Psychology Supports the Pricey Stock Market by mooreds on Saturday September 30, 2017 @05:05PM (#15374980)

This may help: https://www.bogleheads.org/wiki/Rebalancing

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