I'm distributing my investment to stock(mostly MSCI ACWI) and bond funds, Basically 60:40. I also rebalance monthly as I got paid monthly.
I recently worried about the global and local(South Korea) economy. I can't remember all, but there was negative news like:
- Venezuela economic crisis
- South Korea raised the minimum wage, causing rising unemployment rate and costs of business.
- Trade wars between USA and China (and others)
- Global Debt at Record Level
I'm not trying to sell all my investments, but I'm thinking of reducing my stock funds allocation to bond funds a little bit; maybe to 50:50. I will raise it back after an economic crisis hits(if it happens).
My hunch tells me that timing the market is not a good idea, and stick to the plan no matter what. But it also seems risky to ignore bad signals.
Is adjusting my portfolio's distribution according to bad signals from news risky?