I wanted to share my market timing mistakes with the group relative to when I joined the BH forum.
FXSIX = Fidelity Index 500 Fund
VBTLX = Vanguard total bond index fund
the % is the % of my entire retirement portfolio
the value of the funds was at the time I adjusted the portfolio
* 11.6.2014 – FXSIX 72.18 VBTLX 10.78 - moved 30% of stocks to bonds
* 7.13.2015 – FXSIX 74.05 VBTLX 10.67 - moved 10% to bonds
* 8.24.2015 – FXSIX 66.92 VBTLX 10.82 - moved 100% of bonds to stocks
* 12.17.2015 – FXSIX 72.3 VBTLX 10.68 - moved 15% to bonds
* 2.8.2016 – FXSIX 65.24 VBTLX 10.84 - moved 100% bonds to stocks
* 8.4.2016 – FXSIX 76.24 VBTLX 11.12 - moved 50% of stocks to bonds
* 9.2016 - Joined BH forum after my boss told me about it
* 12.7.2016 – FXSIX 79.17 VBTLX 10.69 - moved 25% to bonds
For reference:
10.15.2018 FXSIX 96.19 VBTLX 10.29
As you can see I was a big dummy before joining the BH forum.
Then I still managed to not buy into it since I was still acquiring knowledge.
Since 9.2016 I have read many of the books recommended the forum. I have read many posts. and I have picked an asset allocation that I can stick with and adjust within the 5% band most recommend annually.
Through this whole time and currently 100% of my retirement savings were going into the FXSIX.
Anyone care to share how quickly after they discovered BH they bought into the stay the course and stopped "market timing"?
Market timing mistakes relative to joining BH Forum
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Re: Market timing mistakes relative to joining BH Forum
Not exactly market timing, but after I joined BH in 2014, I got educated about expense ratios and fees and took about 3-4 months to get out of all my actively managed funds. I also adjusted my asset allocation as previously I didn't even think about it and have adjusted it gradually with age since.
It's systematic so I don't consider it timing
It's systematic so I don't consider it timing
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Re: Market timing mistakes relative to joining BH Forum
Don't worry it is more important that you learned how to fish then when you learned it. Sounds like you are young in your career and if so you have MANY years to do it correct.
Personally, I never market timed or did individual stock selection as it seemed common sense that you can't beat the market as a whole. I was shocked to read that folks didn't just assume that to be true.
Good luck.
Personally, I never market timed or did individual stock selection as it seemed common sense that you can't beat the market as a whole. I was shocked to read that folks didn't just assume that to be true.
Good luck.
"The stock market [fluctuation], therefore, is noise. A giant distraction from the business of investing.” |
-Jack Bogle
Re: Market timing mistakes relative to joining BH Forum
If you're referring to a sort of delay in actually making the change to BH after discovering your investing mistakes, it happened to me and my guess is that it happens often to others, even to investing pros early in their careers (the author Michael Lewis is an example). For some reason, once a wrong path is discovered and the right path is realized, the switch to the right, or better, path is not always made immediately. In my case, after I discovered passive investing, I immediately began putting new money into indexing, but it was awhile before I moved money from my active account into the new passive. It's probably not a huge deal, but it is interesting and I'm not certain of the reasons, other than that they probably vary with each individual.helloeveryone wrote: ↑Tue Oct 16, 2018 8:14 am ...
Anyone care to share how quickly after they discovered BH they bought into the stay the course and stopped "market timing"?
"Yes, investing is simple. But it is not easy, for it requires discipline, patience, steadfastness, and that most uncommon of all gifts, common sense." ~Jack Bogle
Re: Market timing mistakes relative to joining BH Forum
Genuine common sense is surprisingly uncommon.staythecourse wrote: ↑Tue Oct 16, 2018 10:59 am ...it seemed common sense that you can't beat the market as a whole.
It's not an engineering problem - Hersh Shefrin | To get the "risk premium", you really do have to take the risk - nisiprius
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- Joined: Mon Jan 03, 2011 8:40 am
Re: Market timing mistakes relative to joining BH Forum
True that. I am guilty of the same, but randomly for this specific issue I don't understand how anyone can think they can time a market that makes no sense on when it goes up, down, or sideways are on day to day basis.David Jay wrote: ↑Tue Oct 16, 2018 11:11 amGenuine common sense is surprisingly uncommon.staythecourse wrote: ↑Tue Oct 16, 2018 10:59 am ...it seemed common sense that you can't beat the market as a whole.
Good luck.
"The stock market [fluctuation], therefore, is noise. A giant distraction from the business of investing.” |
-Jack Bogle
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- Posts: 1285
- Joined: Sun Sep 04, 2016 5:16 pm
Re: Market timing mistakes relative to joining BH Forum
I think it's just complete ignorance on the subject. No one talked to be about this when I was a kid, in high school, in college, beyond college etc.. My education started with reading the personal finance/retirement planning in money.com, forbes.com, kiplingers.com, random books, then as the big picture sunk in (save for retirement, control spending) next thing you know I learned about BH and I finally understand the big picture and some of the details better.staythecourse wrote: ↑Tue Oct 16, 2018 11:13 amTrue that. I am guilty of the same, but randomly for this specific issue I don't understand how anyone can think they can time a market that makes no sense on when it goes up, down, or sideways are on day to day basis.David Jay wrote: ↑Tue Oct 16, 2018 11:11 amGenuine common sense is surprisingly uncommon.staythecourse wrote: ↑Tue Oct 16, 2018 10:59 am ...it seemed common sense that you can't beat the market as a whole.
Good luck.