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Is accelerating an equities glide path a market timing strategy?

Bogleheads • View forum - Investing - Theory, News & General - www.bogleheads.org
We are pursuing early retirement this year. I've read a lot (here and elsewhere) about asset allocation strategies, and we've decided to pursue a rising glide path approach to mitigate sequence of returns risk.

... ly-better/

My question is whether it is a market timing strategy (and a bad idea) to accelerate an equities glide path by increasing the equities percentage after a market correction. The strategy is design to buy insurance against getting poor returns in the first few years of retirement, since in the end it will all work out. But if you do get that correction, you have "used your insurance" and would it be reasonable to increase equities exposure closer to the desired final value? This is essentially betting that there won't be a second big correction, and you can then buy equities on sale. I'm imagining for example "if the market drops 10%, I will accelerate my equities glide by say 10%. If it drops another 10% next year, I would shift another 10% into equities." I would not move more into equities than my desired final long term allocation.

I guess I feel like this IS market timing, but I'm also not seeing how it's a bad idea. So, I must be missing something! What do you think?
Date: Jun 20, 2017   


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