- Beginning in July, I've steadily moved from bonds to stocks and continued doing so throughout the October down turn. By the end of October my portfolio was fully 75% invested in stocks, still below my 80% target, but well above the ~60% at the end of 2007.
- I have eliminated Large Cap Value and Small Cap styles, replacing them instead with Small Cap Value to represent both groups. I have also increased REIT's theoretical share to 16%.
While satisfied with the theory behind the above moves, from a percentage standpoint they are unlikely to have much impact upon overall portfolio performance. The moves during October represented less than 2.5% of the portfolio. The other thing that stands out is how scared I was - and continue to be - by the devastation suffered by my overall retirement portfolio. It is difficult to believe that this can be a "good thing" and that the portfolio can recover from a decline in value in excess of 30% in overall value. I suppose I've become resigned to the fact that there is no alternative and thus nothing that could have been done differently, then or now.
Current allocation:
Stocks: 74%
Total Stock Index (includes WF S&P500): 37%
Small Cap Value: 9%
REIT: 10%
International: 14% (Emerging: 5%)
Note: I sold Mutual Shares and Vanguard Index Extended, both held in my taxable account and use those funds to purchase:
Vanguard Tax Managed Capital Appreciation; and
Vanguard Tax Managed International
