Interesting info on re-balancing investments

Was listening to the Stacking Benjamins podcast this morning and they had an interesting bit of trivia.

Apparently, July was the lowest amount of trading within existing accounts for 401Ks/403bs/IRAs. What this basically meant is that folks were not re-balancing their investment accounts (selling their high winners and buying losers to get the allocations back in line).

Those that were trading were selling mostly out of bonds and into foreign stocks and S&P 500 – which has been the big winners over the last 6 months. In other words, they were selling low and buying high!

While I only rebalance 2x a year (Jan & July), I definitely trade to get back into my allocation, selling high and buying low.

What do you do when you make trades within your account?

Mr. 39 months

 

 

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