When market drops....shifting funds?

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alewisdvm
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When market drops....shifting funds?

Post by 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
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zebrafish
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Re: When market drops....shifting funds?

Post by 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.
Last edited by zebrafish on Thu Jan 31, 2013 5:15 pm, edited 2 times in total.
Topic Author
alewisdvm
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Re: When market drops....shifting funds?

Post by 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
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Re: When market drops....shifting funds?

Post by leonard »

Hypothetically and in theory - you should stay the course.
Leonard | | Market Timing: Do you seriously think you can predict the future? What else do the voices tell you? | | If employees weren't taking jobs with bad 401k's, bad 401k's wouldn't exist.
pkcrafter
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Re: When market drops....shifting funds?

Post by pkcrafter »

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

Bogleheads would stop right here. :happy

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
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.
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nisiprius
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Re: When market drops....shifting funds?

Post by nisiprius »

alewisdvm wrote:So, of course, it is never smart to chase the market.
Stop right there.
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Ed 2
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Re: When market drops....shifting funds?

Post by Ed 2 »

Here we go again.))) Thank you God for making us (bogleheads) a tiny minority of all the "smart"crowd :D :happy
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alewisdvm
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Re: When market drops....shifting funds?

Post by 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.
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zebrafish
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Re: When market drops....shifting funds?

Post by zebrafish »

We all get weak sometimes, my son.

Go pray the Boglery 100 times, and we shall absolve your sins.
leonard
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Re: When market drops....shifting funds?

Post by leonard »

zebrafish wrote: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?
Leonard | | Market Timing: Do you seriously think you can predict the future? What else do the voices tell you? | | If employees weren't taking jobs with bad 401k's, bad 401k's wouldn't exist.
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SC Hoosier
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Re: When market drops....shifting funds?

Post by SC Hoosier »

When the market drops, find all the money you can and buy! Then don't sell. :D
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Re: When market drops....shifting funds?

Post by jwa »

When is the market going to drop? I need to know. :oops:
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Re: When market drops....shifting funds?

Post by minesweep »

alewisdvm wrote: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
Time is your friend; impulse is your enemy - John Bogle | Learn every day, but especially from the experiences of others, it's cheaper! - John Bogle
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