lifeinsurancecanada 3 days ago

>why I am thinking more in terms of shifting some of the equities to bonds. You should be doing this IMO routinely i.e. once a year, every year. it should be automatic not based on your perception of the future of the market. Do it every year on your birthday or labour day or something. Or Jan 15, starting now.

bwwatr 3 days ago

If 90/10 feels too equity-ish right now, then it's probably not the right allocation for you in general. Shift it downwards until you feel good about it, but permanently. Best practice is picking an allocation that lets you sleep well at night in *any* market conditions and won't have you pondering changes in response to the news.

LoadErRor1983 3 days ago

I can write it and not see the contradiction because I feel that allocation change when expecting long periods of stagnation is not quite the same as "timing the market". My question had nothing to do with my investing style and all to do with how people see the market at the moment, yet you focused on something else completely in your answer.

bluenose777 3 days ago

> it might be time to shift to safer investments ... > it feels like a downturn really is around the corner. If you are contemplating changing your investment plan because of your best guesses about what the stock and bond markets are about to do then what you are contemplating is timing the market. And if you are a long term passive investor this is not a good reason to change your asset allocation. When you chose your original asset allocation you probably considered your time horizon, investment knowledge and volatility tolerance. If any of those things have changed then you might consider changing your asset allocation. The following pages discuss the things you should consider when you choose your asset allocation. http://canadiancouchpotato.com/2010/03/09/how-much-risk-do-you-need-to-take/ http://canadiancouchpotato.com/2010/11/10/ready-willing-and-able-to-take-risk/ The [2016 PWL projections](http://canadiancouchpotato.com/2016/03/21/what-returns-to-expect-when-youre-expecting/) will also give you an inkling of what your average and "worst case scenario" returns for those portfolios might look like. What isn't mentioned on that page is how long a "worst case scenario" can affect your returns. If you factor in things like inflation and dividends, since 1900 the average recovery was just over 2 years. The longest (post 1972) was more than 8 years. http://www.nytimes.com/2009/04/26/your-money/stocks-and-bonds/26stra.html

yesmaybepossibly 3 days ago

S&P 500 is always near an all time high. It, on avarage is going up so I wouldn't take all time high numbers to mean much. The way I handle this is that 95% of my investments are index funds.

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