If this week's blip made you nervous, it sounds like your AA is more aggressive than your risk tolerance.
With all due respect - and I really do mean this sincerely! - I fail to understand your reasoning. First, about large drops. This week's stock market drop makes me nervous. A 50% drop would make me numb. That my asset allocation hypothetically turned a future 30% drop into a 15% one, is no consolation. That the market eventually recovers and powers-ahead, while my AA leaves me with meager gains, would be ghastly indeed.
Statistics: Posted by watchnerd — Fri Sep 06, 2024 8:16 pm