Did anybody rebalance during the....

Discuss all general (i.e. non-personal) investing questions and issues, investing news, and theory.

Did You Rebalance Intraday During the Big Drop?

Yes, I Timed It Perfectly
No, I was too mesmerized by the whole affair
No, I was in total shock
No, I was in total shock
No, I wasn't looking at the market during that time
No, I rebalance near/at end of day
No, I rebalance over time frames, not bands
No, I don't rebalance
No, by the way, What's a rebalance?
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Total votes: 74

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Random Musings
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Did anybody rebalance during the....

Post by Random Musings »

big drop this afternoon?

Changed to rebalance (as per the normal) - the title is still incorrect but cannot change.
Last edited by Random Musings on Thu May 06, 2010 3:33 pm, edited 2 times in total.
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Post by sscritic »

I am not sure I understand the question:

Did you mean to ask:

"Did you buy stocks and sell bonds when the Dow was down 1000 and then sell stocks and buy bonds when the Dow was down only 300?"

That is what intraday rebalancing means to me (as opposed to regular rebalancing today).

And where is the survey as to how many of you sold bonds today when your bonds went "out of bounds"? Bonds up, stocks down; sell bonds, buy stocks. How many really did both?
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Post by Startled Cat »

Added some new money today, then happened to load Google Finance an hour later and saw the S&P 500 down >8%. I expect the market to keep falling whenever I buy, but not that much!

Anyway, I strongly advise AGAINST rebalancing or TLH during periods of crazy volatility. In 2008, I happened to TLH at the very moment that the US House of Representatives voted down TARP. The market moved against me in a big way in between my trades.
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Re: Did anybody rebalance during the....

Post by Boglenaut »

Random Musings wrote:big drop this afternoon?

Changed to rebalance (as per the normal) - the title is still incorrect but cannot change.
So, my mutual fund check is in the mail. So was I rebalancing at that momment?
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Post by caklim00 »

Was going to since my domestic/international got out of whack. Looked at what was going on at 2:50 and decided to wait for another day. Wouldn't have mattered even if I wanted as a few of the major brokerages (including mine) was down.
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Post by livesoft »

Yes, I rebalanced, but did not get the bottom. I submitted limit orders before I had be away from the internet. I put in some ridiculous limits that still got filled unexpectedly.

Nevertheless, this show is not over. I could be screwed for buying equities today.
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Post by Sidney »

I doubt I hit the lower band today. Besides, I was at the car wash and missed it.
I always wanted to be a procrastinator.
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Post by mickeyd »

The idea crossed my mind around 2:30, but I held my emotions in check as the Dow settled down to only a -350. New meaning to staying the course.
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Post by neverknow »

Last edited by neverknow on Mon Jan 17, 2011 12:29 pm, edited 1 time in total.
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Post by livesoft »

I entered a limit order about 10% below yesterday's close around 14:42 ET. It was executed at about 14:50 ET while I was away. I hope the trade is not busted.
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Post by ManyDeductions »

I noticed the drop this afternoon, checked my portfolio, and nothing was outside a rebalancing band. I don't see that option covered in the poll.
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Post by Will M »

i had the TV on during the chaos. i went to my computer to look into whether i wanted to move ~2% of my portfolio that i had in cash into stocks & also to see if I could harvest some tax losses. ( sell one ETF & buy a similar one or sell Chevron & buy Exxon). problem was that Schwab wouldn't let me log on. i am unhappy about it as it cost me some real money. apparently Schwab wasn't the only broker who had this issue but it still irks me.
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Post by sschullo »

No, I was traveling from Amarillo TX to Oklahoma City. Perhaps next time. :lol:
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Post by djw »

I'd entered one small share exchange order the night before which executed at close of market. I'm happy with the result.

I happened to be passing a TV showing CNN at approx. 2:50 pm. I was headed home, but when I saw CNN reporting the Dow was down 8% in a matter of minutes, I hurried along and got back home to my computer at 3:40 pm.

I immediately tried to get online to look at the latest numbers. CNBC on my TV was already reporting that most of the plunge had been reversed. My usual modus operandi on days like today is to open my Scottrade screen and look at my watch list. I have the ETF-equivalents of my Vanguard mutual funds (e.g. VNQ for VGSIX REIT fund) on this list, so it's a quick and easy way to watch near-instantaneous market action approaching the close and decide whether to enter a purchase or exchange prior to 4:00 p.m.

Unfortunately, it was impossible to connect to Scottrade and I was barely able to connect to Vanguard. My PC's McAfee also decided to update my antivirus at that moment, which generally slows my older PC to a crawl.

As 4:00 approached, I finally gave up on trying to make an exchange and rationalized that the markets were in such a turmoil, I might not be seeing accurate data anyway, so I just turned my attention to CNBC for the play-by-play and got myself a cold beverage. I'm still watching CNBC at 8:25 pm ET as their reporting continues, perhaps into the night.

BTW, as a former PR person, I'm a bit skeptical of the excuse that it was all triggered by one errant data entry person who hit a "B" for billion instead of a "M" for million, but it really doesn't matter.

What today's fiasco does demonstrate, once again, is what a wonderful electronic house of cards we've allowed Wall Street to construct and how small a puff of air (the alleged data entry error) it takes to send all of the cards falling in disarray.

As a former MIT student who's always been fascinated by Murphy's Law, Chaos Theory and unstable oscillators, this was a textbook case. I was particularly intrigued that it happened just after 2:30 p.m. which was highly relevant because the circuit breaker rules change at that hour in such a way that no circuit breakers were triggered to stop this collapse.

Mr. Murphy would have loved it. The only remaining question is, was the timing intentional or purely random? Perhaps time will tell.
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Post by MWCA »

I was outside doing some gardening. Eating lunch with the in laws etc. Didn't find out what happened till a little while ago.

I really dont plan on doing anything but possibly buying more stocks.
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Post by In The Weeds »

I learned of the crazy market from the forum......evidently, my stock market gadget said the market was down 750ish but I read it as 150ish. (a blur of a 1 and 7 sort of look the same :oops: ) Just said #$@*! down big and checked my e-mail. Then decided to see what was happening here......and saw the DOW down 900 thread.
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Post by stratton »

I hit it perfectly last weak near the high when I sold off some SV and REITs. They just went over their bands.

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Post by natureexplorer »

I got a price trigger alert email when out for lunch because the market was plunging. It was for EXG (from my pre-Bogleheads days). I didn't even know that I still had the price trigger alert active. Anyway, EXG took a huge plunge already at 2:10 pm ET. I thought that was kind of odd, but didn't make much of it. When I went back to the computer I saw VB and VTI jumping jumping between 0 and whatever their normals are. I tried to access Wells Trade to put in some limit buy orders but the site was unavailable. Not knowing about busted trades before yesterday I would have put in the limit order so low though, that they would have gotten busted anyway.