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by throw0101a 1961 days ago
> Your suggestion (to change the portfolio allocation) would mean temporarily selling stocks and holding money.

Or bonds:

* https://awealthofcommonsense.com/2020/08/why-would-anyone-ow...

Rebalancing is a thing, though generally for risk reasons. It would/could have saved one's returns during the so-called Lost Decade of the 2000s with the S&P 500:

* https://www.forbes.com/sites/investor/2010/12/17/the-lost-de...

As your equities dropped, there's a good chance bonds would have at least stayed neutral, or even risen: so you'd sell some of those (sell high) and pick up equities at a discount (buy low).

There are even products available that do this automatically for you:

* https://investor.vanguard.com/mutual-funds/lifestrategy/