Timing the Balancing of Bonds With Stocks

You sometimes hear complaints from financial gurus that it makes little sense to balance stock holdings with bonds when both may move together in the  markets. The idea is that one security should go up when the other goes down, as a means of balancing a securities portfolio.

At times, however, bonds and stocks move in the same direction.

But there is another factor involved, should you attempt to time the markets to tell you how much bonds or stocks to hold and when to sell which. The matter of timing can be risky because it often fails.

However, asset allocation with set percentages of stocks and bonds, is a form of market discipline and has value as such. (See the Earl J. Weinreb NewsHole® comments and @BusinessNewshole at Twitter.)