No where to run to, nowhere to hide, eh?
One could write a small book about the state of investments today. Money market funds are backwards/dead monies, except for short term parking, pending other choices. Too many equity sectors are hot and interest rates/yields have trended up in recent months.
We don't re-balance our portfolio based upon end of year or other time frames. The markets help establish any changes.
We're at 45% equity and 55% bonds at this time. Yes, we could have found investment glory changing some investments at the being of April, 2020. But, we stayed firm throughout the year. Everyone has there own assessment of risk. There are 1,000's of combo portfolios among those at this forum. I won't agree with some of the choices, as well as many would not agree with our choices. Tis the nature of the investment beast.
Cheap money and those investing on margin..... I don't have any data about how much hot money is in the market place; using margin or otherwise. Reportedly, there are about 13 million Robinhood accounts in the U.S. I don't know how much money these accounts are managing. More to this point is that I will presume much of this money is narrowly targeted to narrow sectors or stocks within those sectors. Twitter feeds have likely pushed a lot of this money in the past year. I don't imagine many of these folks are reading the WSJ or similar publications.
Lastly, is that we generally have little concern for investing choices based upon elections or politicians. The machinations of Congress and the government in general move along with their compromises and decisions. Many of these actions have slow moving parts that may cause some changes in a longer term investing environments.
However, some of our investment considerations going forward as of January 4 find a new set of circumstances that are beyond the normal, at this time; and just when we thought that Covid was the primary game changer. The Georgia Senate election and what FORM of government will find it's place in the next two weeks weighs upon investments changes at this time.
Wishing all of you well; for a variety of reasons.