I see no conundrum. Or any real issue other than your choice of language.Valuations matter too, and are actionable, if you hold 20-80...Well, I think words matter. And in bogleheads tarring people who rebalance between fixed allocations as "market timers " is misleading and not to me a compelling argument.Well, regardless of what we call it, maintaining a 20-80 (Int'l-US) ratio requires buying and selling based on changes in valuations.I have roughly market weight for US vs non-US stocks. But I think having a fixed unchanging non market weight allocation being called "market timing" is unconventional and unhelpful. Most of us think of market timing as a dynamic process. If you aren't dynamically changing your allocation in response to perceptions about changes in the values of investments, in my opinion you aren't market timing.In order to maintain a 20-80 Int'l-US ratio for instance, one must engage in market timing based on (relative) valuations....
To give a different example, by this definition any boglehead who owns BND for their bonds is "market timing" as BND is not actually the total bond market.
Global Market Cap does not.
Quite the conundrum, isn't it...
Should we update the OP...?
Statistics: Posted by Da5id — Fri Sep 13, 2024 6:18 pm — Replies 6935 — Views 1690597
