Right now the majority of my retirement accounts (401k, IRAs) are in an 500 Index fund, and I put the same amount into my IRA/401k each month at regular intervals with the same proportion into the 500 fund and other smaller investments. **How would I approach rebalancing during a downturn like this so less of my portfolio is weighted towards the 500 fund moving forward?**
Selling a portion of my current 500 fund holdings (taxes aside since these accounts are tax-advantaged) to purchase other funds/stocks doesn't seem to make sense since that would lock in losses, but at the same time, investing less proportionally with future contributions also doesn't seem to make sense since AFAIK the aim of DCA is to buy the same amount regularly during high periods and low periods to take advantage of pricing (lower quantity when the price is high, higher quantity when the price is low), and my understanding is if you reduce what you're contributing (proportionally) into a fund/stock during a downturn, you're not getting the advantage of buying more at a lower price.
**Is there a good way to approach a rebalance during a downturn, or is it just a choice between two not great options?** I'm also not in any rush (in my mid 20s), so **would it make more sense to stay the current course and approach a rebalance when pricing hopefully recovers / is on an upswing?**
Thank you!