Despite the activity, rebalancing now was insignificant. However, these shaky markets serve as a microcosm for the value that periodic rebalancing provides against longer market activity. Any temptation to move during the height of market uncertainty was neutralized because my next scheduled rebalance was known. If the market retreat continued, then my rebalance at that time would have been more impactful (potentially buying more shares of the equity funds when they were lower). As it turned out, the markets recovered so the dip in values meant nothing as they virtually recovered in the same amount of time. In short, it took the emotion out of the equation during the most emotional time to invest.
As I discussed in my last update, I recently modified my target 85/15 allocation (due to changes at Vanguard) with 30% to Total Stock Index Fund and PRIMECAP Fund, 15% to Total International Stock Index Fund, 11% to Total Bond Index Fund, and the remaining 4% to Total International Bond Index Fund. After all the market activity, only Total International Stock Index Fund was off by 1%, so my reallocation involved fractional percentages coming from the other four funds to make up that percentage point.
To reintroduce the graph for these numbers, which I have not used in five years (back when I started at my current position), here was the impact of this quarter's reallocation:
Vanguard Total Stock Market Fund 30.3% / -0.3% / 30%
Vanguard PRIMECAP Fund 30.4% / -0.4% / 30%
Vanguard Total Int'l Stock Fund 14.0% / 1.0% / 15%
Vanguard Total Bond Market Fund 11.1% / -0.1% / 11%
Vanguard Total Int'l Bond Fund 4.2% / -0.2% / 4%
