When Should I Reallocate?

“Should I reallocate?” is a question that prospective clients often ask me. The next question that is really embedded in that question is: “Should I pay the taxes necessary to get a better allocation?” This question has come to the surface the last several months. I’ve witnessed it more and more lately, especially in the realm of do it yourself investors and prospective clients who saw the market as cheap in the mid 2015’s or during the Covid period and dumped significant amounts of money into Index Funds or sector Exchange Traded Funds. Markets have seen a huge run up in the past years and large gains have been banked in passive investments. Today I want to walk through some trends I’ve seen and give some ideas on how to approach this situation.