Rebalance into international?

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PhillyBird
Posts: 64
Joined: Sat Apr 04, 2015 4:44 pm

Rebalance into international?

Post by PhillyBird » Tue Jul 17, 2018 7:41 pm

Anyone taking the opportunity to rebalance to from US Total Market to International Total Market after recent decline? I usually rebalance once a year around October, but seems like the recent dip in International equities presents an opportunity. Or am I market timing?

livesoft
Posts: 61944
Joined: Thu Mar 01, 2007 8:00 pm

Re: Rebalance into international?

Post by livesoft » Tue Jul 17, 2018 7:45 pm

If one is underweight in an asset class according to their asset allocation plan, then one should direct new contributions and dividends into the underweighted asset class.

If one uses "bands" to decide when to rebalance, then one should check their bands.

If one uses date to rebalance, then one should check their calendar.

If one uses RBDs to time their rebalancing, then one should wait for the RBD.

If one does all of the above, then one should check all of the above.
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PhillyBird
Posts: 64
Joined: Sat Apr 04, 2015 4:44 pm

Re: Rebalance into international?

Post by PhillyBird » Tue Jul 17, 2018 8:08 pm

I use a date (once a year), and am currently underweight international. This inside a tax deferred account, so a fund-to-fund exchange has no tax implications.

I'm just checking if anyone decided to rebalance after recent run up in US and slight decline in International.

mbasherp
Posts: 85
Joined: Mon Jun 26, 2017 8:48 am

Re: Rebalance into international?

Post by mbasherp » Tue Jul 17, 2018 9:59 pm

I just did this again today. My new investments go into my taxable account which is all US equities. Each time I invest more, I need to rebalance in my Roth to maintain my overall AA. But each Roth rebalance this year has involved much more selling of total US than just my new funds would ordinarily dictate.

I did peek and see that Ex-US is still in correction territory. Whenever the bounce back that US stocks have enjoyed hits there, that Roth will bounce back like it’s spring loaded! Or so I assume.

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whodidntante
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Joined: Thu Jan 21, 2016 11:11 pm

Re: Rebalance into international?

Post by whodidntante » Tue Jul 17, 2018 10:01 pm

I did. I also had sold international equities before that to buy the lagging USA equities. Them's the breaks.

DCChak
Posts: 85
Joined: Tue Nov 10, 2015 8:41 pm

Re: Rebalance into international?

Post by DCChak » Wed Jul 18, 2018 8:57 am

Have not yet. At the risk of being accused of market timing, it's hard for me to see a bottom for international relative to domestic right now given the recent tariff bluster and silliness. That may of course be the precisely right time to buy. But FWIW, I'm still waiting a bit.

IRT
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Joined: Mon Dec 11, 2017 1:38 pm

Re: Rebalance into international?

Post by IRT » Wed Jul 18, 2018 10:04 am

I was tempted to check my US:Int ratio. I guess I shouldn't have been surprised to see 61:39 (60:40 desired). That's still well-within my bands.

asif408
Posts: 1357
Joined: Sun Mar 02, 2014 8:34 am
Location: Florida

Re: Rebalance into international?

Post by asif408 » Wed Jul 18, 2018 10:30 am

Sure, why not? You are market timing, but don't we all to some extent? At least you are market timing in a good way.

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