Posted by Tim Stobbs on February 25, 2009
Ok, for those who are die hard index investors cover your ears. I have a confession. I have yet to rebalance my portfolio this year.
WHAT?! Well it did start off for a completely logical thing. I was waiting to transfer my previous employer’s RRSP to be put into the account prior to doing it. Otherwise I would end up rebalancing twice so why bother when I can just wait a week or two. Then the transfer dragged on for a while and things have gotten worse on the market and now I’m waiting for other reasons.
I’m waiting for things to drop even more. You see I don’t think we are past the worst of this yet. So I’m sitting on my pool of cash at least until the Q1 results are out for most companies. I want to see the damage and the reaction to it all before I commit my cash. I keep hearing about a ‘recovery’ in 2010 and I’m not so sure what that is going to look like. Perhaps a bit more stability on the markets, but I’m not sold on an actual recovery yet.
So I’m being overly emotional on things, I know that. Yet I’m curious what others have done? Did you rebalance at your set time or are you waiting too? Did you change your investment policy or have you managed to stick with it? Any tips for those of us with cold feet?