Redeployment Today Despite China and Virus Noise

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Kintora
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Redeployment Today Despite China and Virus Noise

Post by Kintora »

Recently moved accounts and sold several funds on Thursday and Friday morning. Sitting on significant cash I want to redeploy to VTSAX and VTIAX (TSM and TISM).

I considered holding off until Tuesday to buy back in to stocks via those indexes presuming likely drops again on Monday, but my brain tells me that reeks of market timing and to just proceed with my pre-open buy orders now despite what's going on with the China SSE Index.

Is it correct to say that Boglehead philosophy is to ignore all this noise and proceed with my buys now regardless of what's happening in China and the virus?
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yangtui
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Re: Redeployment Today Despite China and Virus Noise

Post by yangtui »

One data point here...I am still buying as usual and keeping my asset allocation as is. At the end of the day loud noises are still just noises.
AlohaJoe
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Re: Redeployment Today Despite China and Virus Noise

Post by AlohaJoe »

If you submit a purchase order for those mutual funds right now, it won't be processed until after the markets close on Monday, using the Monday closing price.

Waiting until Tuesday doesn't make any sense given what you've said. Then you'd get the Tuesday price. But you said you want the Monday price.

There's no such thing as a "pre-open buy order" when it comes to mutual funds.
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Tamarind
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Re: Redeployment Today Despite China and Virus Noise

Post by Tamarind »

Yes. Also, fwiw if the market is going to drop tomorrow, and you are buying mutual funds, you'll get the benefit of any market movement since you'll be getting the price at the end of the day Monday. In practice though, even a big one day swing or a correction looks like a lot of nothing compared to the next years or decades of cumulative change.
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Kintora
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Re: Redeployment Today Despite China and Virus Noise

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AlohaJoe wrote: Sun Feb 02, 2020 10:03 pm If you submit a purchase order for those mutual funds right now, it won't be processed until after the markets close on Monday, using the Monday closing price.

Waiting until Tuesday doesn't make any sense given what you've said. Then you'd get the Tuesday price. But you said you want the Monday price.

There's no such thing as a "pre-open buy order" when it comes to mutual funds.
Oh, I see. Thanks for educating me on that. I am still learning as you can see. In any case, I will just proceed with my buy orders now then.
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Kintora
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Re: Redeployment Today Despite China and Virus Noise

Post by Kintora »

Tamarind wrote: Sun Feb 02, 2020 10:04 pm Yes. Also, fwiw if the market is going to drop tomorrow, and you are buying mutual funds, you'll get the benefit of any market movement since you'll be getting the price at the end of the day Monday. In practice though, even a big one day swing or a correction looks like a lot of nothing compared to the next years or decades of cumulative change.
Thanks for your comments. I appreciate it. :beer
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