When market drops....shifting funds?

[alewisdvm]

So, of course, it is never smart to chase the market.
But, hypothetically.
If you have a few vanguard index funds, and the market is suspected to head again in to a recession, in theory, where would you move the assets of the index fund ira's and 401k's?
Could you just move into bonds temporarily?

I know there are definitely some investors who want to predict market movement, and plenty of theories (some completely worthless predictions coming out of yahoo) that market and U.S. economy is headed for possible recession...

I figure there are PLENTY of comments to tear apart those who chase the market, but was curious what investors do that prefer a sell and buy approach as market moves in large swings.

Thanks

[zebrafish]

This is not the right message board for you if you are looking for market timing rationalization...

But if stocks drop, bonds will de facto increase in your portfolio asset allocation. When rebalancing occurs or you make additional purchases to maintain AA you buy low and potentially sell high. This is the beauty of staying the course as they say.

[alewisdvm]

I understand.
That is why I have always been long and use almost all vanguard funds.
Just a general inquiry because I was curious.

[leonard]

Hypothetically and in theory - you should stay the course.

[pkcrafter]

So, of course, it is never smart to chase the market.

Bogleheads would stop right here.

But, hypothetically.
If you have a few vanguard index funds, and the market is suspected to head again in to a recession, in theory, where would you move the assets of the index fund ira's and 401k's?
Could you just move into bonds temporarily?

You could.

I know there are definitely some investors who want to predict market movement, and plenty of theories (some completely worthless predictions coming out of yahoo) that market and U.S. economy is headed for possible recession...

I figure there are PLENTY of comments to tear apart those who chase the market, but was curious what investors do that prefer a sell and buy approach as market moves in large swings.

I've mentioned where Bogleheads would stop, but someone will come along and suggest how/when to sell and buy, but If you really want to get a discussion going on timing, you'll have to join a timing forum.

Paul

[nisiprius]

So, of course, it is never smart to chase the market.

Stop right there.

[Ed 2]

Here we go again.))) Thank you God for making us (bogleheads) a tiny minority of all the "smart"crowd

[alewisdvm]

okay okay!!!!
I get the point.
If you look at any of my other posts, you'll see I am truly dedicated to understanding and implementing long-term good asset allocation.

I want to be one of the smart people.

[zebrafish]

We all get weak sometimes, my son.

Go pray the Boglery 100 times, and we shall absolve your sins.

[leonard]

We all get weak sometimes, my son.

Go pray the Boglery 100 times, and we shall absolve your sins.

"Boglery"! Where can I order mine?

[SC Hoosier]

When the market drops, find all the money you can and buy! Then don't sell.

[jwa]

When is the market going to drop? I need to know.

[minesweep]

So, of course, it is never smart to chase the market.
But, hypothetically.
If you have a few vanguard index funds, and the market is suspected to head again in to a recession, in theory, where would you move the assets of the index fund ira's and 401k's?
Could you just move into bonds temporarily?

Dictionary definition of the word "suspected":

Have an idea or impression of the existence, presence, or truth of (something) without certain proof.

Mike