{"id":76476,"date":"2025-02-08T20:43:52","date_gmt":"2025-02-08T20:43:52","guid":{"rendered":"https:\/\/peraltafinancing.com\/business\/finance\/rebalance-your-portfolio-lazy-man-and-money\/"},"modified":"2025-02-08T20:43:52","modified_gmt":"2025-02-08T20:43:52","slug":"rebalance-your-portfolio-lazy-man-and-money","status":"publish","type":"post","link":"https:\/\/fivemor.com\/?p=76476","title":{"rendered":"Rebalance Your Portfolio – Lazy Man and Money"},"content":{"rendered":"


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One of the core philosophies behind Lazy Man and Money is that you can manage your money without a lot of work. Typically, you set up a system once, such as contributing to a 401k plan, and then review it once or twice a year. Combining a good income and a few good systems is enough for most people to achieve financial success.<\/p>\n

If you are following this bare minimum philosophy of financial management, this is one of the times I want you to be active. You may not have noticed it, but the stock market has been soaring for a long time now. It soared before the election, and it continued to soar after the election.<\/p>\n

A high stock market isn\u2019t necessarily cause for concern. There are many, many times when the stock market just keeps going up and up. Depending on the stock market index, it has reached a new high of 50 days or more this year. Here\u2019s what investing $100 in the S&P 500 in 1980 would be worth according to this website<\/a>.<\/p>\n


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Click the image above so that the website opens in a new tab. We\u2019ll refer back to it, and it will be handy to follow along with your mouse on certain dates.<\/p>\n

Do you see any point where you\u2019d like to cash out? Sure, there have been little hiccups for a couple of years here and there, but overall, you would have wanted your money in the market for the last 45 years.<\/p>\n

Here\u2019s an exercise. Pick a year like 2014, 2017, or 2021. Cover up the chart to the right and just look at what it was doing on the left. In all those years, it was already setting new highs. Then you move your hand away and see that it continued to set even more new highs.<\/p>\n

We don\u2019t know if we are in one of those years. Even though the stock market is setting new highs, it might continue to set even more highs.<\/p>\n

However, I\u2019m going to present you with another chart. This is the Shiller P\/E<\/a> or CAPE.<\/p>\n


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Like with the S&P 500 chart, click that image for it to open in a new tab.<\/p>\n

This chart measures the price of the stock market relative to the earnings. Earnings are critical because if companies aren\u2019t making money, investors won\u2019t pay a high price for them. Looking at the chart carefully, you see some obvious peaks and valleys. For example:<\/p>\n