A Confession on Investing

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?

2 thoughts on “A Confession on Investing”

  1. I have delayed my reballancing too waiting for things to go lower. I’m monitoring a few key ETF’s that I ‘m looking to make additional investments to. Basically looking for when they are close to 52 week lows again and then evaluate the environment (mostly ignoring the news noise). I certainly don’t feel rushed as long as I’m mostly done before the end of Summer.

  2. Glad to see your not buying stocks at this time.

    I guess in the broadest sense… I also rebalanced our portfolio. I sold all of our Canadian equity mutual funds before the June 2008 peak. I have been in near cash investments since that time. I have also had a little luck with bear ETFs on the way down. Which, if you think about it – makes logical sense for anyone thinking things will go lower. Going long during the bull market and either stepping aside or go short during the bear market.

    I am also waiting for signs of the bottom before venturing back in to long positions.

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