The concept and practice of the balanced portfolio goes back to the 1920s. It’s even older when you read ancient scripts, for example, the Talmudic instruction to divide assets equally into three buckets (land, business, and reserves). Strategic asset allocation has been bolstered by academic research and has outlasted numerous bear markets.
Assuming investors already have a diversified balanced portfolio appropriate for their goals, time horizon, and risk tolerance, the best action may be inaction.
Of course, there is no one-size-fits-all solution. For investors who choose otherwise, Vanguard research indicates that steps such as changing your savings rate or retirement age will likely have more impact on the bottom line over the long run than making changes to a portfolio’s asset allocation.