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Author: temsike Big red star, 1000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 75384  
Subject: Re: Should I sell now Date: 11/21/2008 3:28 AM
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joey2509:
<<I watched my porfolio go from 650k to 300k. I cant sleep at night as this is my next egg that I worked my life for. I am 44. I have my sell orders in for the morning. I know that they say that fear spooks most people but this really seems very bad and seems like there is more downside. I think there is more chance of the marger going to 5000 than to 10,000. Any final thoughts?>>

You must have a near 100% equity allocation for your portfolio. It dropped 54%. My port has dropped 35% year to date.

My 60% equity allocation at the begining of the year is now 41%. My stock portion dropped 56%, and I had a nice chunk of foreign and emerging market ETFs. 17% of that begining equity portion (10% of the total port) are REITs.

Since my 30% fixed income is now 47% of the portfolio, if I were rebalancing today, I'd over-rebalance stocks to 66%.

If you don't have any fixed income to either statically rebalance your equity portion to what is was at the begining of the year, then you should just ride it out until recovery--however long that takes.

In the future, never go more than 80% equities. That's about as agressive as any 20 year old should get. At your age of 44, you should be anywhere from 56 to 76% equities.
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