MarketWatch article-Vanguard investors kept their cool during stock-market turmoil

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Paul Romano
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MarketWatch article-Vanguard investors kept their cool during stock-market turmoil

Post by Paul Romano » Fri Feb 16, 2018 11:45 am

Article on MarketWatch

Vanguard investors kept their cool during stock-market turmoil
97% of Vanguard households did not trade in the recent correction, asset manager says


https://www.marketwatch.com/story/vangu ... 2018-02-16

From the article:

According to the asset-managing giant, which has taken in massive inflows in recent years as investors flock to passive investment strategies, its clients kept their wits about them in the recent turmoil on Wall Street, which saw the Dow Jones Industrial Average DJIA, +0.54% and the S&P 500 SPX, +0.49% last week enter correction territory for the first time in about two years.

“Vanguard investors are sticking to their long-term investment plans and tuning out the noise of the stock market volatility of the past few weeks,” the firm wrote in a news release. Citing data from its own Center for Investor Research, Vanguard added that “over the six-day period from Feb. 2 through Feb. 9, Vanguard found that 97% of households did not trade. Vanguard also found that trading on volatile days rarely exceeds 1% of households.”

(gekko)
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Re: MarketWatch article-Vanguard investors kept their cool during stock-market turmoil

Post by (gekko) » Fri Feb 16, 2018 11:48 am

And still their website didnt hold the traffic that day.

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Toons
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Re: MarketWatch article-Vanguard investors kept their cool during stock-market turmoil

Post by Toons » Fri Feb 16, 2018 11:50 am

" Vanguard found that 97% of households did not trade. Vanguard also found that trading on volatile days rarely exceeds 1% of households.”

I am assuming that indicates that active trading is not one of the roads to wealth creation,or more of the millions upon millions of Vanguard shareholders would be participating in that activity,if so.


:idea:
"One does not accumulate but eliminate. It is not daily increase but daily decrease. The height of cultivation always runs to simplicity" –Bruce Lee

BigMoneyNoWhammies
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Re: MarketWatch article-Vanguard investors kept their cool during stock-market turmoil

Post by BigMoneyNoWhammies » Fri Feb 16, 2018 11:54 am

(gekko) wrote:
Fri Feb 16, 2018 11:48 am
And still their website didnt hold the traffic that day.
Doesn't mean they weren't all trying to log in to track what was happening to their portfolios. They would be crazy not to.

an_asker
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Re: MarketWatch article-Vanguard investors kept their cool during stock-market turmoil

Post by an_asker » Fri Feb 16, 2018 12:02 pm

(gekko) wrote:
Fri Feb 16, 2018 11:48 am
And still their website didnt hold the traffic that day.
Or "because"? ;-)

TropikThunder
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Re: MarketWatch article-Vanguard investors kept their cool during stock-market turmoil

Post by TropikThunder » Fri Feb 16, 2018 12:03 pm

BigMoneyNoWhammies wrote:
Fri Feb 16, 2018 11:54 am
(gekko) wrote:
Fri Feb 16, 2018 11:48 am
And still their website didnt hold the traffic that day.
Doesn't mean they weren't all trying to log in to track what was happening to their portfolios. They would be crazy not to.
It was all tax loss harvesting and RBD buying. :P

thangngo
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Re: MarketWatch article-Vanguard investors kept their cool during stock-market turmoil

Post by thangngo » Fri Feb 16, 2018 12:06 pm

Paul Romano wrote:
Fri Feb 16, 2018 11:45 am
Article on MarketWatch

Vanguard investors kept their cool during stock-market turmoil
97% of Vanguard households did not trade in the recent correction, asset manager says


https://www.marketwatch.com/story/vangu ... 2018-02-16

From the article:

According to the asset-managing giant, which has taken in massive inflows in recent years as investors flock to passive investment strategies, its clients kept their wits about them in the recent turmoil on Wall Street, which saw the Dow Jones Industrial Average DJIA, +0.54% and the S&P 500 SPX, +0.49% last week enter correction territory for the first time in about two years.

“Vanguard investors are sticking to their long-term investment plans and tuning out the noise of the stock market volatility of the past few weeks,” the firm wrote in a news release. Citing data from its own Center for Investor Research, Vanguard added that “over the six-day period from Feb. 2 through Feb. 9, Vanguard found that 97% of households did not trade. Vanguard also found that trading on volatile days rarely exceeds 1% of households.”
Misleading article.

Good for the 3%!! Some people of this group recognized the opportunity to accelerate contribution, to do TLH, and to exchange bond to equity fund. I've been busy doing those things.

bondsr4me
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Re: MarketWatch article-Vanguard investors kept their cool during stock-market turmoil

Post by bondsr4me » Fri Feb 16, 2018 12:26 pm

It doesn't surprise me that VG investors kept their cool during the recent turmoil.

After all, VG doesn't espouse "trading" anyway.

VG is an "investor" operation and not built for "traders", which is just fine with me.

Don

livesoft
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Re: MarketWatch article-Vanguard investors kept their cool during stock-market turmoil

Post by livesoft » Fri Feb 16, 2018 1:25 pm

I am a Vanguard client. It is true that I did not trade in my Vanguard account because it is very difficult to do so. Vanguard does not keep good track of one's money in real-time.

However, I made more than 10 trades in my other non-Vanguard accounts to capture the gains from the lows of the RBDs.
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novicemoney
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Re: MarketWatch article-Vanguard investors kept their cool during stock-market turmoil

Post by novicemoney » Fri Feb 16, 2018 1:52 pm

What is defined as a trade? Is it selling? Buying? Selling and buying? I guess the implied premise is that people didn't panic sell, but how many actually bought?

azanon
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Re: MarketWatch article-Vanguard investors kept their cool during stock-market turmoil

Post by azanon » Fri Feb 16, 2018 2:16 pm

BigMoneyNoWhammies wrote:
Fri Feb 16, 2018 11:54 am
(gekko) wrote:
Fri Feb 16, 2018 11:48 am
And still their website didnt hold the traffic that day.
Doesn't mean they weren't all trying to log in to track what was happening to their portfolios. They would be crazy not to.
How so? Some of us are running IPS with instructions to only rebalance annually. John Bogle cause this sort of thing noise, and suggests we treat it as such.

rudeboy
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Re: MarketWatch article-Vanguard investors kept their cool during stock-market turmoil

Post by rudeboy » Fri Feb 16, 2018 2:27 pm

Did they mention their website was down during the most volatile trading hours?

That's like an employer locking his workers in the factory and saying, "Look! No, turnover."

smesman
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Re: MarketWatch article-Vanguard investors kept their cool during stock-market turmoil

Post by smesman » Fri Feb 16, 2018 2:40 pm

thangngo wrote:
Fri Feb 16, 2018 12:06 pm
Good for the 3%!! Some people of this group recognized the opportunity to accelerate contribution, to do TLH, and to exchange bond to equity fund. I've been busy doing those things.
What you're suggesting is that bogleheads should've taken the opportunity to "buy the dip" so to speak. But the truth is that none of us knew what was going to happen. In the 2008 thread you'll find plenty of examples of people regretting that they kept rebalancing on the way down.

Personally I invested the same as every month and did not rebalance.

Wakefield1
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Re: MarketWatch article-Vanguard investors kept their cool during stock-market turmoil

Post by Wakefield1 » Fri Feb 16, 2018 2:46 pm

BigMoneyNoWhammies wrote:
Fri Feb 16, 2018 11:54 am
(gekko) wrote:
Fri Feb 16, 2018 11:48 am
And still their website didnt hold the traffic that day.
Doesn't mean they weren't all trying to log in to track what was happening to their portfolios. They would be crazy not to.
Mr. Market was making crazy lowball offers for me to sell my crown jewels to him for less than I think they are worth! Insulting!

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badbreath
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Vanguard Investors during the downturn

Post by badbreath » Fri Feb 16, 2018 6:55 pm

[Thread merged into here, see below. --admin LadyGeek]

Good going at being Bogleheads at Vanguard and staying the course

www.marketwatch.com/story/vanguard-inve ... 2018-02-16
“While money can’t buy happiness, it certainly lets you choose your own form of misery.” Groucho Marx

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tludwig23
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Re: Vanguard Investors during the downturn

Post by tludwig23 » Fri Feb 16, 2018 7:10 pm

The story includes no comparison nor control group, thus it really doesn't say much.
That's what I do: I drink, and I know things. --Tyrion Lannister

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Re: MarketWatch article-Vanguard investors kept their cool during stock-market turmoil

Post by LadyGeek » Fri Feb 16, 2018 7:25 pm

I merged badbreath's thread into the on-going discussion.
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(gekko)
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Re: MarketWatch article-Vanguard investors kept their cool during stock-market turmoil

Post by (gekko) » Sun Feb 18, 2018 4:10 pm

azanon wrote:
Fri Feb 16, 2018 2:16 pm
BigMoneyNoWhammies wrote:
Fri Feb 16, 2018 11:54 am
(gekko) wrote:
Fri Feb 16, 2018 11:48 am
And still their website didnt hold the traffic that day.
Doesn't mean they weren't all trying to log in to track what was happening to their portfolios. They would be crazy not to.
How so? Some of us are running IPS with instructions to only rebalance annually. John Bogle cause this sort of thing noise, and suggests we treat it as such.
Hey guys! don't get me wrong... I just do not like that I cannot access my assets at the moment I wanted to access (BTW, was on business hours!!!)
Also, I did not received any apologies or communication from Vanguard about it. Maybe they do not have any records that I was trying to access my account. Very disappointing! :annoyed
I'm really considering changing the custody of my assets.

freebeer
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Re: MarketWatch article-Vanguard investors kept their cool during stock-market turmoil

Post by freebeer » Sun Feb 18, 2018 4:32 pm

BigMoneyNoWhammies wrote:
Fri Feb 16, 2018 11:54 am
(gekko) wrote:
Fri Feb 16, 2018 11:48 am
And still their website didnt hold the traffic that day.
Doesn't mean they weren't all trying to log in to track what was happening to their portfolios. They would be crazy not to.
Yes we Bogleheads are obsessive if not compulsive.

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