Once again, we are on opposite sides of the same coin. I hope you don't mind discussing it with me cuz it helps ME reorganize my own thoughts. LOL!
I'm not sure I agree with Bogle's cost question as it pertains to rebalancing, Bill. Any DCAs I do are only with NTF funds. My rebalancing is achieved mainly on the buy side and infrequently on the sell side; therefore, I avoid paying early redemption penalties. No cost, no harm, no foul.
I'm not really sure I understand what you mean when you say Rebalancing seems to me to be basically a return to the mean story. My goal is to use the pendulum swing of reversion to the mean to my advantage.
Ya got me, Bill. What the heck is PE10 valuation investing? Link me to a whitepaper, please. If it's a fancy way of saying fundamental value investing, that's me... P/B under 2, P/S under 1, D/E 30% or less (0% preferred), ROI & ROE at least positive nearterm and 10% or higher longterm, a long history of dividend growth and recent price in the tank well below its 52-week high.
On the other hand, if PE10 valuation investing is something to do with the concept of being all or nothing in equities based on whoever says that the market is over- or undervalued, it's not my cuppa tea, either.
About leaving a ton of money on the table... I consider the cash to be my bond proxy in our portfolio. I have two arms of investments in half of our accounts (the ones with the most flexibility) of roughly equal size... one for individual equities, one for OEFs. In my 401k, I have moved from over 15% cash to just 3% cash in the past few days. At the same time, I have several limit OTS (at a profit) 3 CEFs and stocks that will restore that balance.
Do you invest lumpsum every year, Bill? If so, does it seem to make a difference when (the time of year) you invest? When? How is your portfolio allocated as it pertains to international and domestic equity, sectors and/or asset allocation?
As you know, I DCA and also rebalance my MFs. My portfolio allocation goal is 1/3 domestic equity, 1/3 international equity and 1/3 sector (financial, realty, utilities, precious metals, healthcare & tech/telecom) and/or asset allocation (REITs, bonds, precious metals, commodities).
I look forward to hearing from you again soon, Bill.
Regards,
Susan
