Obviously, you don't read my posts. I have explained myself in great detail on this forum. Some posts are short and sweet and others are lengthy. Buy low, sell high is not a trite phrase. It is a fundamental precept of investing. If you don't believe that valuations matter, it is a free country and you can believe whatever you want. I am amazed at the length to which people will pursue semantic games around here.
Nedsaid, First, I'll state that you are a great contributor to the forum and I look forward to your posts. I don't want to make this a big deal, but I figured you were going to get some backlash on the timing comment you made back on pg 1.
You are right, buy low, sell high is not a trite phrase, and it's not just semantics either. For a Boglehead it really only applies to rebalancing because Bogleheads do not buy or sell based on valuations or any other market behavior. The only other time Bogleheads may buy/sell is if they are actually changing allocation based on new personal conditions. Sometimes they even sell low when tax loss harvesting. This is what Bogleheads recommendations are, although I know some don't follow them exclusively. Investors can make changes based on valuations if they want to, but they will get flack if they make it a general recommendation on the forum.
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These two proverbs are ubiquitous in the world of investing, but they seem mutually exclusive to me. How can you know whether you are "buying low" or "selling high" without timing the market?
In the Bogleheads' world, which is primarily buy/hold, buy low/sell high only applies to rebalancing your portfolio back to the chosen asset allocation (AA). That's it. If equity allocation rises 5% above target, you sell a bit (sell high) and buy what is lower than target AA. Conversely, if equity drops 5% below target you buy and rebalance (buy low). There is no need to know anything about the market, valuations, conditions, trends, etc. You only need to look at your own portfolio for guidance. There is no market timing procedure in the Boglehead philosophy.
1 Develop a workable plan
2 Invest early and often
3 Never bear too much or too little risk
5 Never try to time the market
6 Use index funds when possible
7 Keep costs low
8 Minimize taxes
9 Invest with simplicity
10 Stay the course
vic, you took your money out of investments in order to change how and where you keep the money. That is considered a sideways move, because it's not new money. Therefore, the money should be put back into your target allocation ASAP. If you are not comfortable with the equity allocation, lower it, but don't waste your time trying to time.
When times are good, investors tend to forget about risk and focus on opportunity. When times are bad, investors tend to forget about opportunity and focus on risk.