facebookIf I buy ETF twice a year fixed date for rebalancing, but if market free-fall but my next buy is still 6 month later, what would be your advice? - Seedly

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          Anonymous

          18 Apr 2019

          SeedlyAMA

          If I buy ETF twice a year fixed date for rebalancing, but if market free-fall but my next buy is still 6 month later, what would be your advice?

          Rebalancing and how should it be done

          AMA Investment Moats

          1

              Discussion (1)

              What are your thoughts?

              Ng Lip Hong Kyith

              Ng Lip Hong Kyith

              21 Aug 2018

              Level 7·Chief Editor at Investment Moats

              Ah tough question. Usually i would advocate you see the magnitude of the fall. if the fall is 10% or 20% its not too bad, but if you think this has reached 50%, then may be you want to put both your contribution for the year in at once.

              if you do not have the money, then the decision is obvious. there is nothing much you could do.

              if its a 10-20% draw down and prior to this there were some gain, your allocation should be still pretty intact. however if the draw down is 50%, your equity portion could be smaller, the rebalancing could be to sell some of your bonds and move them to equity.

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