How to get back into Market having missed this year's rally

Have a question about your personal investments? No matter how simple or complex, you can ask it here.
Post Reply
Topic Author
spb
Posts: 1
Joined: Tue Jan 14, 2014 6:35 pm

How to get back into Market having missed this year's rally

Post by spb »

What is the best approach to getting back into the market. I got out when the S&P 500 was 1350 and missed the last 18 month rally. I had stayed invested for 25 years and just felt the buy and hold approach wasn't working. When the market recovered from 2008 low, I got out and then missed the 30% move. Oh well. Won't happen again. Live and learn.

Vanguard free advice suggested Total Stock Index - any other suggestions? I have ten years before I retire. EFTs, Sector Funds (financial, energy).

Also thinking about the Vanguard's managed account approach - thinking .30 pts is worth the advise. Any thoughts on the Certified Financial Planners and their track record.

Thanks
livesoft
Posts: 86075
Joined: Thu Mar 01, 2007 7:00 pm

Re: How to get back into Market having missed this year's ra

Post by livesoft »

Good questions, this was linked previously with some suggestions:
http://www.ritholtz.com/blog/2013/06/mi ... to-do-now/
Wiki This signature message sponsored by sscritic: Learn to fish.
Calm Man
Posts: 2917
Joined: Wed Sep 19, 2012 9:35 am

Re: How to get back into Market having missed this year's ra

Post by Calm Man »

If you have a little money, just put it in TSM. If you have a lot of money (your criteria apply) put it in over a period of time. I decided 2 years ago to do my stock and muni bond mutual fund investments (TSM and NJ long term) over 4 years at quarterly intervals. when things dropped I felt better. When things went up I felt better.
Johm221122
Posts: 6393
Joined: Fri May 13, 2011 6:27 pm

Re: How to get back into Market having missed this year's ra

Post by Johm221122 »

Have an AA that let's you sleep at night is the most important thing I think.Then put your money to work.Do you have a written plan
John
4th and Inches
Posts: 253
Joined: Mon Nov 12, 2012 7:53 pm

Re: How to get back into Market having missed this year's ra

Post by 4th and Inches »

Others more knowledgeable than me can chime in, but make sure you put the buy and hold strategy doesn't work approach to rest ASAP. The wiki and previous threads offer a wealth of information on how market timing does not work. Welcome to the board!
pswift
Posts: 48
Joined: Mon Apr 29, 2013 10:34 pm

Re: How to get back into Market having missed this year's ra

Post by pswift »

There are no investment strategies to make up for the lost opportunities of the past, only strategies to take advantage of the opportunities ahead. Your post sound pretty forward looking so I'm guessing you've already got this part figured out.
It seems to me that getting back in is essentially the same as starting fresh. So the question really is to evaluate your current life situation, investing goals, assets, risk tolerance and such, and then develop an Investment Policy Statement that will guide your investment decisions for 2014 and beyond. I wrote my IPS in 2013, and found it to be extremely helpful -- both the process of creating it, and the continuing guidance it provides.

-Swift
pswift
Posts: 48
Joined: Mon Apr 29, 2013 10:34 pm

Re: How to get back into Market having missed this year's ra

Post by pswift »

Here's the wiki link for the investment policy statement. There's tons of other great stuff in the wiki is well and I highly recommend it.
http://www.bogleheads.org/wiki/Investme ... _statement
User avatar
sometimesinvestor
Posts: 1271
Joined: Wed May 13, 2009 6:54 am

Re: How to get back into Market having missed this year's ra

Post by sometimesinvestor »

I agree with John. You sold out when you decided the market was too risky. At least it was not in 2009 so you actually did better than many. The point is that you need an asset allocation that is low risk enough for you to not get nervous Perhaps a 40% equity 60% bond will let you be comfortable with rebalancing rather than selling out.
selftalk
Posts: 1096
Joined: Thu Mar 08, 2012 9:08 am

Re: How to get back into Market having missed this year's ra

Post by selftalk »

Stick to your investor policy plan period. You are trying to time the market from what you say. What have you learned on this website? Just apply it and go live your life and enjoy yourself. It`s that simple and the asset classes will take care of themselves. Ignore the NOISE!
Post Reply