You're risking $30,000 of $1M. And that's assuming the DOW drops 50% from today! I don't think your approach is reasonable; it's not based in reason, it's based in fear and thus irrational.confusedinvestor wrote: ↑Fri Mar 20, 2020 11:31 pm Thanks.
That was my concern that rebal now from 68:32 to 75:25 is taking more risk, given such volatile market and black swan events
that's why I was thinking to rebal gradually (eg 2% every 2 months ) and DCA my 401K contributions to 100% stocks and review my AA quarterly
Does this sound reasonable ?
Maybe this sounds too much tinkering with my portfolio. I don't understand VIX etc technical terms.
The reality is if you have legitimate reason to believe this rebalance brings you great risk a 70 or 75% equities exposure is the real risk. The 30k potential loss from rebalancing shouldn't be your concern, the $700,000 in equities should be your concern.
*I* don't think it should be, but you seem to have real concern for your 70k but not the 700,000. That's irrational to me.