Originally Posted by
mispoken
Possibly, but again, that requires human hands making adjustments and thinking they’re timing it properly. Historically, that doesn’t work in our favor. If you can set it up to rebalance mechanically with a small, mid, large and international index funds it could work.
Market timing is not good. The rebalancing is whenever any given asset allocation in a portfolio exceeds its share of the portfolio by 25%, again spreading risk around instead of allowing it to build up.
Originally Posted by
mispoken
Another thing is when people come involved multiple mutual funds both index and actively managed, they end up overlapping. So what they’re perceiving as security by diversifying amongst multiple funds, may be a false sense of security (although not necessarily adding more risk).
Exactly correct.