Comments on: Why Not 100% Stocks? http://thefinancebuff.com/why-not-100-stocks_05.html like a friend telling you about money ... Sun, 20 May 2012 11:06:24 +0000 hourly 1 http://wordpress.org/?v=3.1.2 By: Monevator http://thefinancebuff.com/why-not-100-stocks_05.html#comment-8641 Monevator Sat, 19 May 2012 14:25:26 +0000 http://blog.thefinancebuff.com/?p=69#comment-8641 I like the battery analogy, but the trouble is defining "when the market is down". In retrospect, 2007 when this was written was a great time to load up the battery with a big move into bonds. And of course late 2008 and 2009 was a great time to discharge it. Now many people say the market looks peaky, and indeed it has started selling off. But if the S&P is say 2000 in ten years time, it may seem like it was still 'down' in the grander scheme of things. This is a very good reason for mechanically rebalancing these things... ;) I like the battery analogy, but the trouble is defining “when the market is down”.

In retrospect, 2007 when this was written was a great time to load up the battery with a big move into bonds. And of course late 2008 and 2009 was a great time to discharge it.

Now many people say the market looks peaky, and indeed it has started selling off. But if the S&P is say 2000 in ten years time, it may seem like it was still ‘down’ in the grander scheme of things.

This is a very good reason for mechanically rebalancing these things… ;)

]]> By: TFB http://thefinancebuff.com/why-not-100-stocks_05.html#comment-55 TFB Tue, 06 Feb 2007 16:46:00 +0000 http://blog.thefinancebuff.com/?p=69#comment-55 Thank you, but the battery idea belongs to <a href="http://makingourway.blogspot.com/">makingourway</a>. I brought it up in case you didn't see it. He has a <a href="http://makingourway.blogspot.com/2007/02/books-on-basic-investment-planning-role.html">follow-up post</a> too. Thank you, but the battery idea belongs to makingourway. I brought it up in case you didn’t see it. He has a follow-up post too.

]]> By: My Financial Journey http://thefinancebuff.com/why-not-100-stocks_05.html#comment-53 My Financial Journey Tue, 06 Feb 2007 13:21:00 +0000 http://blog.thefinancebuff.com/?p=69#comment-53 Excellent points!! I really like the battery idea and it very much fits with the long-term investors mentality. I like this idea a lot. As much as I'm barking over at my site about 100% stocks it's just trying to get someone to stick my foot in my mouth with some solid counterpoints. I really deep down think I should have some bonds and your post here might have just pushed me over that edge. Excellent points!! I really like the battery idea and it very much fits with the long-term investors mentality. I like this idea a lot. As much as I’m barking over at my site about 100% stocks it’s just trying to get someone to stick my foot in my mouth with some solid counterpoints. I really deep down think I should have some bonds and your post here might have just pushed me over that edge.

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