> Rebalancing the portfolio to other asset classes smells a lot like timing the market. Rebalancing is not timing the market, unless you're changing your ratio

> Rebalancing the portfolio to other asset classes smells a lot like timing the market. Rebalancing is not timing the market, unless you're changing your ratios. Let's say I want 80% equities and 20% cash. The market bombs, and now I have 50% equities and 50% cash. If I thought all the information was already priced into the market, then reallocating to get back to 80/20 makes sense. Not rebalancing would be more like timing the market, because I would be assuming that the current value doesn't represent some "true value" of the market. > The question still remains: When would you move to other asset classes? Somewhat regularly, but not constantly because that takes time and has transaction costs. The specific time doesn't matter. > I'm sure there were time periods when holding cash was your best option. Definitely, it's just very very hard to identify which periods they are until after they've happened.