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Old 03-21-2008, 09:06 AM   #1
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I have been in Vanguard's Energy fund for fifteen years . Is it now time to sell some to lock in my gains ? and would you hold onto this fund in today's market ?
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Old 03-21-2008, 09:39 AM   #2
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Rebalance if it has grown past your AA percentage. Otherwise I would hang on to it. I can't see energy getting wildly cheap with all the developing countries coming on line. This could be the start of a good dip in prices, but who knows? One big news event and it could be back up again.

Dan
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Old 03-21-2008, 09:44 AM   #3
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I can't see energy getting wildly cheap with all the developing countries coming on line.
I'm holding onto mine for this simple reason, to me there is no reason to believe the demand side will change soon. And I like VGENX because it the lowest correlation holding in my AA relative to other holdings.

And if you've held it for 15 years, congratulations, you've done very well...
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Old 03-21-2008, 10:10 AM   #4
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And if you've held it for 15 years, congratulations, you've done very well...
Thank you ! That and Vanguard's health care fund have been very good to me .
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Old 03-21-2008, 10:33 AM   #5
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i have VGENX also, for about 8 yrs. it's a Roth IRA account. nice nice nice.

i vote HOLD

did you know it takes $25K to start an account in VGENX now? it was originally only $3K.

anyone know when it changed?
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Old 03-21-2008, 10:40 AM   #6
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Rebalance if it has grown past your AA percentage. Otherwise I would hang on to it. I can't see energy getting wildly cheap with all the developing countries coming on line. This could be the start of a good dip in prices, but who knows? One big news event and it could be back up again.

Dan
I wish I had VGENX! I am prohibited from holding it, though, for work-related reasons.

I agree completely with Dan, above. No harm in rebalancing.
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Old 03-21-2008, 10:55 AM   #7
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Thank you ! That and Vanguard's health care fund have been very good to me .
I have held Vg Health Care for a very long time, but I just noticed that I could sell it for a tax loss. This is because it has been tax inefficient and paid out distributions. With the distributions re-invested, my cost basis is higher than the current value even if that value is more than the money I put into it. Check it out. I have been fooled.

By the same token, maybe your VGENX is in the same situation. By selling, you would not lock in gains, but would lock in losses (which btw, I'm all for tax-loss harvesting)
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Old 03-21-2008, 11:37 AM   #8
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I have held Vg Health Care for a very long time, but I just noticed that I could sell it for a tax loss. This is because it has been tax inefficient and paid out distributions. With the distributions re-invested, my cost basis is higher than the current value even if that value is more than the money I put into it. Check it out. I have been fooled.

By the same token, maybe your VGENX is in the same situation. By selling, you would not lock in gains, but would lock in losses (which btw, I'm all for tax-loss harvesting)

Thanks for the interesting information .
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Old 03-21-2008, 01:22 PM   #9
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I manage an all-fund/index account for my FIL that I manage for return and safety, with an outright intention of diversifying away from his other holdings (which are overwhelmingly equities). As commodities and non-USD bonds made the moonshot in the past month, I have been steadily selling down these exposures. However, they are now down to about 15% of the account each and I don't plan on selling any more. Why? No telling how far the USD could drop or how high commodities could go, so even though I am decidedly less enthusiastic about these asset classes right now, I would not want to leave them out of the mix.
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Old 03-21-2008, 02:32 PM   #10
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[quote=brewer12345;632048. Why? No telling how far the USD could drop or how high commodities could go, so even though I am decidedly less enthusiastic about these asset classes right now, I would not want to leave them out of the mix.[/quote]


Thanks , I've trimmed my account a little but the rest I'm going to hold since a chunk of it is in an IRA I will not be using for years .
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Old 03-22-2008, 05:08 AM   #11
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I thought about owning it... missed opportunity. But I am widely diversified so I do own it in that way.

I have stayed out of the sectors... although, I think they can be managed effectively. This is an area where ETFs make sense to me. If I owned sectors, it would be with the intent of buying and selling.

I am a bit of a contrarian, so I would look at sectors that are out of favor. Investors Business daily provides some good information to help one keep track of this type of strategy.

However, I would only us a limited amount of money to play the sector game.

IMHO it is not a buy and hold strategy... it is a buy low/sell high with a finite time horizon and you will watch, monitor, and act... you need to have a plan but also use judgement. if you are not disciplined... stay away from it... stick with broad diversification.
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Old 03-22-2008, 08:43 AM   #12
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IMHO it is not a buy and hold strategy... it is a buy low/sell high with a finite time horizon and you will watch, monitor, and act... you need to have a plan but also use judgement. if you are not disciplined... stay away from it... stick with broad diversification.

I bed to differ with you . I have owned Vanguard Energy and Vanguard Health Care almost since they started in 1984 and Energy has averaged 15.39% and Health Care has averaged 18.13 % . I'd say they were great buy and hold investments .
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