I believe i am now overweight on stocks for my age. Probably 70% stock and 30% bonds / reits.Stocks are a mix of individual stocks and etfs / index funds with one sector fund (xph).I'm trying to figure out what to sell to buy bonds. None of the stocks really seems bad. A few seem like real winners and I will stick with them.Should i just bite the bullet and pick a couple or sell portions of several positions? I would appreciate your thoughts or opinions.Thanks John
If you know what you are doing, there is no reason not to hold stocks. Just pay attention, look at the charts daily, etc., and make money. If things begin to get bad in the market, go to cash and wait for things to get better.
A few thoughts in no particular order......do you have a written set of plan/goals. It is much easier to think things out in advance of a "problem" and have a solution already thought out....what do you think is an appropriate % of stocks. Don't sell stocks to buy bonds thinking they are less volatile. Unless you hold a bond to maturity, they can be just as volatile and lose your capital as well....when do you need this money. Next month, next year, next decade. If you need to money in less than 5 years, it has no business being in anything other than a money market fund or CD, IMHO....FWIW, I was doing some rebalancing today and had 2 stock positions that were >20% above intended allocation. No hard core reason to sell other than to keep them from becoming too dominant a position. It is my rule, I'll stick to it. JLC
Thank you for your comments.These are all good thoughts. Especially writing down plans / objectives. I have a sense but not a written plan of what I am after.I'll work on writing it down.
Finally, keep in mind with interest rates so low, now is a terrible time to buy bonds. If possible wait a while. Interest rates will probably rise to more typical levels in three or four years. That will be a better time to buy.In the meanwhile, consider dividend paying stocks or blue chips to stabilize your portfolio while you wait.
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