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Rather than moving towards active management as you become more conservative, why not just rebalance towards safer investments like bonds, reducing your equity

• VLM 12y ago
  Rebalancing your portfolio is active management of the portfolio. Aside from that... With bonds at this time you can either get a return on capital below the real inflation rate (aka you're better off with metals which track inflation better than bonds or just spending it now to get more than you'll be able to get later) or you get to worry about return of capital with super risky investments. From a harm minimization standpoint you'll fall behind slower with bonds than just putting it in a savings account, so from that point of view its a valid strategy. Right now we're near a peak, nobodys buying equities but the retail guys who you can always count on to buy high and sell low, so I'm not talking about today but over a longer term. It probably wouldn't be wise to buy in near a market peak. An interesting observational definition of the start of a recession is there's no really good place to park your money. That's now.