You might be correct. Everyone eventually needs to settle on a portfolio. If they don’t constantly switching a good portfolio to find the perfect will make you miserable and probably lead to being worse off than sitting in a good enough portfolio.Holding the "total market" would be fine, but then you get into what benchmark to use for the "total market." US-market-cap-weight is only one of infinite choices. Maybe world market-cap weight? The problem I see is that whatever benchmark/index the OP chooses, it's virtually assured of not being the best-performing at some point going forward, so will the plan then be to switch to whatever has performed best in recent retrospect?Most people should be in total market funds because they can’t tolerate deviation from some benchmark. I think you fit into that category. Holding the total market only is fine.No, I’m worried about present loss because what I’m considering doing is selling the majority of my small cap and putting it into large cap out of fear that the small won’t ever catch up. I appreciate all the insight so far and you all have made some good points.s/he's worried about a future loss after s/he rebalances. It's called market timing what the OP is trying to do ("I won't rebalance now because I'm afraid the thing I've rebalanced into will go down after that!"...then you know what happens sometimes...you missed your opportunity to buy low because while you were on the sidelines the thing that you thought was going to down went up instead Image may be NSFW.
If you rebalance you'll be moving gains from large cap to small cap; I don't see how that's accepting a loss?
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Statistics: Posted by BitTooAggressive — Tue Jul 09, 2024 10:22 am — Replies 75 — Views 5215
