Oct 15
Stay the Course
Stick with your asset allocation plan and add to asset classes if they are under target and the indicators turn positive. The last time I looked, the RSI graphs had moved from below to above the 30% level for most of the ETFs of interest. The 13-week EMA was still below the 26-week EMA and the MACD graph was still negative. This is always a dangerous time to rely on these indicators as they easily could “whipsaw” and trend back down, should the market retest the lows of last Friday.
The most conservative approach is to simply pay attention to the percentage you have invested in a particular asset class and where that percentage is with respect to your target percentage. Over time, continue to add to the asset class that is trailing its target by the greatest percentage. Rebuild the portfolio using new cash and cash dividends. Those readers using the Thomas/Lalla/Herr spreadsheet have the tools available to monitor this information.
Premium subscribers have access to the T/L/H spreadsheet.
Lowell Herr
Sphere: Related Content