The "price" of diversification

[preben]

2 (small) up days in the market while my portfolio went south....

Still beating the general market YTD though.

Cheers!

 

[renferme]

But I'll bet that there are some days when the market goes down and your portfolio goes up ? Right ? Those are really 'feel good' days.

 

[Tadpole]

ben, If misery loves company, I'm your lady. I went to see all the UP and, same as you. Next week is "supposed" to be down; maybe better to not look.

 

[LovesLife]

I guess we should have been in "growth"

 

[Cut-Throat]

I rarely watch the market anymore. I have no idea of where I'm at currently YTD. I look when I have to rebalance.

Since I am commited to taking 'no action', watching the market is silly.

 

[renferme]

silly , but fun nonetheless,,,especially when going up.
My wife laughs at me for 'counting my money' all the time, can't help it...
my Dad did it, my son does it, and I do it,,, must be genetic !
.
Ray

 

[laurence]

I calculate my portfolio balance on a daily basis, totally ridiculous. But it only takes a minute to add up 5 accounts on line. I just enjoy when I "pop" over into the next ten thousands. Hey, some play minesweeper, I play account counter!

 

[SteveR]

My Money program keeps me up to date.  I check it each night......I know..anal retentive  (is that hypenated?) 

It is nice to know if you were up or down for the day; I guess I am easily entertained  .

I really have way too much time invested in this stuff to let it all just go.  I am calculating my exit strategy down to the dollar, even though I know I don't need to.  I try to explain it all to DW but she just says "you take care of that, but maker sure we won't be eating cat food when we are 80".   

No Worries Mate!  We are on track to be eating at least a high grade of dog food by then. 

Guess I need a hobby. 

 

[HFWR]

Doesn't Bernstein refer to this as "tracking error"?

 

[Mr._johngalt]

My Money program keeps me up to date.  I check it each night......I know..anal retentive  (is that hypenated?) 

It is nice to know if you were up or down for the day; I guess I am easily entertained  .

I really have way too much time invested in this stuff to let it all just go.  I am calculating my exit strategy down to the dollar, even though I know I don't need to.  I try to explain it all to DW but she just says "you take care of that, but maker sure we won't be eating cat food when we are 80".   

Do Worries Mate!  We are on track to be eating at least a high grade of dog food by then. 

Guess I need a hobby. 

Not necessarily. For years, in every idle moment, I would work up my net worth
on place mats, cocktail napkins, the daily paper, etc. A harmless distraction
in my view.

JG

 

[Spanky]

I update my spreedsheet every two or three days. It takes about 5 minutes. YTD is almost 5% - not bad relative to the overall market.

 

[maddythebeagle]

"every two or three days. It takes about 5 minutes"

I like the cocktail napkins approach. I probably will update mine at the end of the year just to see where I am.

 

[preben]

He he - some good and honest replies!

I would like to say something cool about me only checking once a month or year but I can't help checking and also consider it a hobby as well as a FIRE-job to keep track. I also analyze new funds/products and potential tinkering and re-balancing.

And yeah I love the days when the overall market(s) are down or flat but my portfolio is up and fortunately there has been more of those!

Up 4-5% on base portfolio and closer to 6% if include the extra stuff (not RE).

Cheers!

 

[TromboneAl]

silly , but fun nonetheless,,,especially when going up.

Exactly! I went a whole week without checking last month, just to see if I could do it. But now I'm back to once-a-day checking.

 

[Mr._johngalt]

Exactly!  I went a whole week without checking last month, just to see if I could do it.  But now I'm back to once-a-day checking. 

Sounds like my Dad who stops drinking periodically to make sure he can
still do it. The guy is almost 88 for crying' out loud. He could be drunk by noon
and what difference would it make?J NO one would care (or maybe even notice)

JG

 

[BUM]

Spank my behind and call me a chubby checker! I sit in the laz-y-boy and tally my brokerage accounts almost every morning. BUT (and this is a big but) it really makes no difference.

For DW's benefit I charted our portfolio's daily values and overlaid the DJIA. Guess what... very little correlation. Not too much of a surprise since our allocation is:

50% cash (various taxable and t/free)
25% equities
25% bonds

No divvies reinvested. All go into cash, then into something else when I figure out what that something else is.

BUM

ps Thanks ben. I've picked up alot of investment advice from regular contributors here. You got me looking at PCRIX and VEIEX... now own them both. Exchanged my VEURX for VEIEX to include far east exposure.

 

[Martha]

Cut Throat is the most amazing early retiree. He doesn't stew about money or whether there will be enough. He seems so comfortable in his skin. Plus he seems to have a lot of fun and takes nice pictures.

 

[BUM]

Cut Throat is the most amazing early retiree. He doesn't stew about money or whether there will be enough. He seems so comfortable in his skin. Plus he seems to have a lot of fun and takes nice pictures.

Can't be too much of a worry-wart when you live in minnesota. I getting the same effect in hurricane alley. I'm learning not to worry. It doesnt do any good.

 

[unclemick]

Worry is great fun - once you learn not to take yourself too serious. Comes natural to me - doesn't stop me from going out to play.

I call it formulating a back up plan - when I slip and get serious.

Heh, heh, heh

 

[preben]

Chubby checker ; you are welcome but I DO charge a beer in fees!
All my divies goes to cash too - and if anything left after spending it will be used for re-balancing.
Cheers!

Spank my behind and call me a chubby checker! I sit in the laz-y-boy and tally my brokerage accounts almost every morning. BUT (and this is a big but) it really makes no difference.

For DW's benefit I charted our portfolio's daily values and overlaid the DJIA. Guess what... very little correlation. Not too much of a surprise since our allocation is:

50% cash (various taxable and t/free)
25% equities
25% bonds

No divvies reinvested. All go into cash, then into something else when I figure out what that something else is.

BUM

ps  Thanks ben. I've picked up alot of investment advice from regular contributors here.  You got me looking at PCRIX and VEIEX... now own them both. Exchanged my VEURX for VEIEX to include far east exposure.

 

[ESRBob]

Doesn't Bernstein refer to this as "tracking error"?

I think it is just diversification. Tracking error is when you really are trying to invest in something that will track the index (like an index fund) and then find it drifts off due to a mismatch about what they actually own and the fees/commissions they pay to own it, and what the market index actually does.

 

[Alan]

Checking several times a week is fun and is harmless as long as you don't act on what you see every week. Being in my 50's my portfolio is now only 35% in equities, 50% bonds and 15% cash, so a daily look doesn't really mean much as all the cash and bond funds pay out monthly or quarterly. (I'm still re-investing the dividends).

 

[HFWR]

I think it is just diversification.  Tracking error is when you really are trying to invest in something that will track the index (like an index fund) and then find it drifts off due to a mismatch about what they actually own and the fees/commissions they pay to own it,  and what the market index actually does.

Yes, agree. However, tracking error is also defined (maybe not by Bernstein??) as deviation from your friends and neighbors; i.e with a diversified portfolio, it's assumed you'll outperform in the long run, with lower volatility, etc. But sometimes you'll be down when the stock/index du jour is up, and your neighbors are all gloating about their portfolios. IOW, can you stand to be down when your neighbor is up. It goes without saying that being up when others are down would not be a problem...

 

[ESRBob]

Yeah, Bernstein makes quite an issue out of this. I think the conversations at this cocktail parties must be a lot more explicit than it is at the ones I go to. We almost never talk about our portfolios or earnings -- or even investments really. Maybe the odd private equity deal, or an annual figure in January parties for those who manage money professionally. If you are down, then you just smile and keep your mouth shut. No one I know is going to make you tell how big 'your number' is.

 

[REWahoo]

Yeah, Bernstein makes quite an issue out of this. I think the conversations at this cocktail parties must be a lot more explicit than it is at the ones I go to. We almost never talk about our portfolios or earnings -- or even investments really. Maybe the odd private equity deal, or an annual figure in January parties for those who manage money professionally. If you are down, then you just smile and keep your mouth shut. No one I know is going to make you tell how big 'your number' is.

You mean you don't hear "I'll show you mine if you show me yours."?

REW