Sunday, March 11, 2007


If you follow David Swensen's advice or mine [ hehe ;-) ], you'll probably need to rebalance your long term portfolio now. Actually Monday AM was the correct time, but I mostly do this on Friday or Saturday. The sharp pullback in stocks worldwide created a re-balancing event according to my spreadsheet for the Krypto Fund. I was adding money to it this week, so I simply bought the underweighted asset classes in the necessary amounts: US stocks, all world stock groups and the REIT index fund. I did this on Friday around midday via the applicable Vanguard index ETFs in my Krypto Fund brokerage account.

In my opinion you are better doing this mechanically and not to use your short term trading outlook as a guide. I make that mistake once in a while - this week for example. I could have done better doing this on Wednesday when my funds cleared, but I figured the market would pull back more. It didn't, so I realized a sliver of opportunity cost. Ms. Market is a stern school mistress.

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