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Would it be a bad or good time to re-shuffle my portfolio now?

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Would it be a bad or good time to re-shuffle my portfolio now?

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Hi All,
I have been pondering about reshuffling my portfolio, basically selling some of my 100% equity funds to buy different 100% equity funds + 1 mixed asset (troy trojan).
Given the current situation, I will be selling at a loss, which nobody is keen on. On the other hand I should be buying the new ones cheaply, on a low, which is advised. 
Shall I proceed with the plan? Or should I hold off, ride out the storm and then take action (when everything will be higher than today)?
 I am kind of paralyzed - what would you do?
Thank you
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Replies

  • Alistair31Alistair31 Forumite
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    You’d need to specify what you hold now and what you are thinking of changing to and your own reasoning for same. 

    I think you’d get a better response that way.
  • ThrugelmirThrugelmir Forumite
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    If you are selling cheap shares and buying cheap shares where's the benefit?  You remain 100% in equity. A highly concentrated portfolio. 

    “An investor who has all the answers doesn’t even understand all the questions.” - John Templeton
  • edited 26 March at 11:50AM
    potopoto Forumite
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    edited 26 March at 11:50AM
    Thanks @Alistair31 and @Thrugelmir. To be more specific, I am not 100% equity (I think I am 80/20) but I would like to change and slightly reduce my equity allocation.
    The funds I am considering selling,only partially, are Lindsell Train Global Equity, Fundsmith Equtity and T Rowe Price US Blue Chip.
    I would be using the money to buy an EM global tracker, an epra-nareit tracker, troy trojan fund o and slater uk growth.
    That would give me an equity allocation I am more comfortable with. 
    I am kind of paralyzed because all the funds I am planning to sell will be at a loss. 
  • ThrugelmirThrugelmir Forumite
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    poto said:

    I am kind of paralyzed because all the funds I am planning to sell will be at a loss. 
    When did you buy your current holdings? 
    “An investor who has all the answers doesn’t even understand all the questions.” - John Templeton
  • AlexlandAlexland Forumite
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    Even if you are maintaining the same level of equities exposure, you also need to consider if you are moving from specific stocks that have been recently devalued into other stocks that have seen less impact as this could affect the amount of recovery you will see when the market eventually returns to normal. Still much depends on the future prospects of the individual companies within the funds. I tend to stick with passives so I don't have to worry about jumping between active managers and their layers of portfolio complexity.
  • dunstonhdunstonh Forumite
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    Rebalancing your portfolio rarely has a bad time to do that.   (peak volatility sometimes worth avoiding unless your platform pre-funds switches).
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • potopoto Forumite
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    poto said:

    I am kind of paralyzed because all the funds I am planning to sell will be at a loss. 
    When did you buy your current holdings? 
    I have been drip-feeding for about 3 years.
  • potopoto Forumite
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    Alexland said:
    Even if you are maintaining the same level of equities exposure, you also need to consider if you are moving from specific stocks that have been recently devalued into other stocks that have seen less impact as this could affect the amount of recovery you will see when the market eventually returns to normal. Still much depends on the future prospects of the individual companies within the funds. I tend to stick with passives so I don't have to worry about jumping between active managers and their layers of portfolio complexity.
    What I'd like to achieve is a better, more diversified, equity allocation for the equity part of my portfolio. I am not sure it now is the right time.
  • potopoto Forumite
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    @dunstonh, but when you re balance, don't you usually sell (on a high) what's performed well to buy (on a  low) more of the under-performers? Problems is that today most, if not all, the equity funds are loss-bearing. 
  • bowlhead99bowlhead99 Forumite
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    poto said:
    @dunstonh, but when you re balance, don't you usually sell (on a high) what's performed well to buy (on a  low) more of the under-performers? Problems is that today most, if not all, the equity funds are loss-bearing. 
    It doesn't really matter if they are up or down. The point is to consider how your total value should be allocated, and sell the ones that are overweight from your desired allocation, to buy more of the ones that are underweight (or zero weight because you have never bought them in the past, but now want them). In doing so, you end up with the portfolio that you want, rather than the portfolio that you have.

    The ones that have not fallen as much are more likely to be overweight, than the ones that have fallen a lot. That's the same principle as saying the ones have performed the highest (gone up the most) are more likely to be overweight than the ones that have delivered a lower return (low or negative performance). For that purpose, it doesn't actually matter if 'sell high' literally means at a high price or a less-low price.
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