Buy today [on the dip?]

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Re: Buy today [on the dip?]

Post by placeholder »

etfan wrote: Mon Sep 20, 2021 11:33 pm Does the sentiment against timing the market also apply to rebalancing? (i.e. Timing the rebalancing to take advantage of a dip rather than doing it the usual time).
I have never rebalanced on a schedule because I use the 5/25 ranges and I would use new money to go into whichever asset class was lagging the most.
Jimsad
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Re: Buy today [on the dip?]

Post by Jimsad »

The SP futures are up 0.7% right now
I know this is but the ‘corect ‘ thing to do but
I am happy I bought some extra VTSAX yesterday!
robphoto
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Re: Buy today [on the dip?]

Post by robphoto »

I'm using a basic 60/40 stocks/bonds, and I buy more stock when the stock gets down to 55%

One benefit of this is that last year when stocks were sliding, I waited with anticipation for them to go down enough so I could buy more!

I didn't have to decide, "is this the day?" When it got down to 55%, I bought enough to bring it back to 60%.
livesoft
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Re: Buy today [on the dip?]

Post by livesoft »

robphoto wrote: Tue Sep 21, 2021 7:00 amI didn't have to decide, "is this the day?" When it got down to 55%, I bought enough to bring it back to 60%.
And if it got down to 55.1%, then what?

Has it ever gotten "close" and you decided to rebalance? Has it ever gotten close and you decided to not rebalance, but later had some regret?
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Jimsad
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Re: Buy today [on the dip?]

Post by Jimsad »

It just relieves the boredom of passive index fund investing (which I know is best for long term) and makes me feel like I am doing something. But I usually do this extra buying on small dips, with very small amounts , like yesterday I bought stocks worth 0.8% of my portfolio
robphoto
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Re: Buy today [on the dip?]

Post by robphoto »

livesoft wrote: Tue Sep 21, 2021 7:02 am
robphoto wrote: Tue Sep 21, 2021 7:00 amI didn't have to decide, "is this the day?" When it got down to 55%, I bought enough to bring it back to 60%.
And if it got down to 55.1%, then what?

Has it ever gotten "close" and you decided to rebalance? Has it ever gotten close and you decided to not rebalance, but later had some regret?
Lately, I've been just following that cutoff exactly, and I do remember being impatient for the ratio to get to the buying point.
UpperNwGuy
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Re: Buy today [on the dip?]

Post by UpperNwGuy »

livesoft wrote: Tue Sep 21, 2021 7:02 am
robphoto wrote: Tue Sep 21, 2021 7:00 amI didn't have to decide, "is this the day?" When it got down to 55%, I bought enough to bring it back to 60%.
And if it got down to 55.1%, then what?

Has it ever gotten "close" and you decided to rebalance? Has it ever gotten close and you decided to not rebalance, but later had some regret?
When it gets close, I don't rebalance. My rule is that it would have to get below 55%. I've never regretted not rebalancing at those "almost" times.
MrJedi
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Re: Buy today [on the dip?]

Post by MrJedi »

Yesterday's dip reached a super low sale price matching the price 2 months ago.

If you had any "dry powder" sitting around more than 2 months ago then you still lost vs. just investing the money as it became available.
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Cheez-It Guy
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Re: Buy today [on the dip?]

Post by Cheez-It Guy »

I bought yesterday, as I do every Monday, automatically.
exodusNH
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Re: Buy today [on the dip?]

Post by exodusNH »

etfan wrote: Mon Sep 20, 2021 11:33 pm Does the sentiment against timing the market also apply to rebalancing? (i.e. Timing the rebalancing to take advantage of a dip rather than doing it the usual time).
Only if it hits your rebalancing bands. E.g., had I been in a better place mentally in March 2020, I would have rebalanced from bonds into equities.
livesoft
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Re: Buy today [on the dip?]

Post by livesoft »

If it is in your IPS (Investment Policy Statement) https://www.bogleheads.org/wiki/Investm ... _statement to buy on the dip or buy on an RBD, or buy on Mondays, or buy whenever you have money to buy, or whatever, then it is not Market Timing, unless you also call it Market Timing in your IPS.
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Bogli
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Re: Buy today ?

Post by Bogli »

Taylor Larimore wrote: Mon Sep 20, 2021 6:45 pm
Bogli wrote: Mon Sep 20, 2021 2:31 pm Since the market is down today is it a good time to buy ? On sale ? VOO/VTI?

Been reading Bogleheads advice/books and I gather this is an opportunity to buy on sale.
Please advise

TIA
Better go back and read the "Bogleheads advice/books" again.

I am the author or co-author of all three Boglehead books. I can't recall any of us giving advice to "to buy on sale" when the market is down. Our advice in all three books is to avoid market timing. Instead "Stay the Course."

Best wishes
Taylor
Jack Bogle's Words of Wisdom: "No matter what happens, stick to your program. I've said "Stay the course" a thousand times, and I meant it every time. It is the most important single piece of investment wisdom I can give to you."


Got the point ! :happy Thank you !!
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Bogli
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Re: Buy today

Post by Bogli »

StevieG72 wrote: Mon Sep 20, 2021 8:52 pm Welcome to the forum, the best time to invest is when money becomes available. Since you are just starting out try to set up an automatic investment plan that will invest weekly or monthly. It will be on autopilot and you will be buying the dips automatically, as well as buying at market highs. In the long run it will serve you well.
Thank you !
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Mullins
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Re: Buy today [on the dip?]

Post by Mullins »

As VTSAX goes ex-div in two days, anyone automatically reinvesting in that is buying anyway.
heyyou
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Re: Buy today [on the dip?]

Post by heyyou »

My 401k provider bought regularly on a fixed schedule for 25 years----until I retired at 55. That seemed to work okay for me, but there will always be someone who did better and brags about it. Patience is a good practice, as is accepting "good enough" instead of striving for more which is laden with more risks.

@ the OP: Just do it. Today's prices compared to some other day, soon will not matter in just a few years, eventually all of your purchases will be considered as good prices. Note the comment perhaps made by Peter Lynch of Magellan Fund fame (back in the 20th century) about more money being lost (not gained) waiting for price drops that didn't occur, than was lost in the price drops that did occur, followed by recovery.
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Taylor Larimore
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Re: Buy today [on the dip?]

Post by Taylor Larimore »

Bogleheads:

When I started investing in 1950 the the S&P 500 stocks were priced about 20.

Looking back, it made no meaningful difference if I bought on a "dip" or not.

Stay the course.

Taylor
Jack Bogle's Words of Wisdom: “Successful investing doesn’t require sophistication and complexity; all that’s necessary is a healthy dose of common sense.”
"Simplicity is the master key to financial success." -- Jack Bogle
Jimsad
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Re: Buy today [on the dip?]

Post by Jimsad »

Bought the dip again today 🍻
livesoft
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Re: Buy today [on the dip?]

Post by livesoft »

Jimsad wrote: Tue Sep 28, 2021 5:19 pm Bought the dip again today 🍻
Sold a few days ago after buying the dip last week. Used the cash to buy back today at a lower price. However, this is a bit scary somewhat like Fall 2008. Will probably sell soon again.

OTOH, things like IJS and AVUV are still up from 9/20 (even taking into account the dividend(s) they paid).
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Jimsad
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Re: Buy today [on the dip?]

Post by Jimsad »

livesoft wrote: Tue Sep 28, 2021 5:24 pm
Jimsad wrote: Tue Sep 28, 2021 5:19 pm Bought the dip again today 🍻
Sold a few days ago after buying the dip last week. Used the cash to buy back today at a lower price. However, this is a bit scary somewhat like Fall 2008. Will probably sell soon again.

OTOH, things like IJS and AVUV are still up from 9/20 (even taking into account the dividend(s) they paid).
I bought vtsax and vtiax
I do hope this is not the start of a fall like in 2008
jsapiandante
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Re: Buy today [on the dip?]

Post by jsapiandante »

I'd buy the dip now since I have the cash but my IPS states I buy at the beginning of the next quarter and I'm nowhere near close to my rebalancing bands. So wait, I must.
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