Depends on your age and your working status. If you are a typical Villager, you are retired, and in the "distribution phase" of your life. That is, you are withdrawing money from your savings every month, and no longer saving a portion of your income for later. Given that assumption, and given your risk tolerance, you should have 2 to 3 years of cash or cash equivalents. That insulates you from the normal highs and lows of the stock market. Next, have a reliable income stream coming from bonds, bond equivalents, ultrashort bond funds, preferred and dividend stocks (or funds / ETFs / CEFs depending on your investment expertise). Again, depending on your risk tolerance, these might comprise 20-60% of your retirement portfolio, The remainder would be equities, anywhere from solid well-known companies to higher flyers. Once you are set on these holdings (or again representative mutual funds / ETfs) you stay the course and don;t touch them during corrections. If you've made solid selections history shows that they will revert to their growth histories. There is no need to continually rebalance. IMO you cut your winners short and invest more in losers that way. Best of luck
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