REWahoo
Give me a museum and I'll fill it. (Picasso) Give
Duck and cover folks - Monday is coming and the voodoo queen augurs ill for the market!
Stand down. Check who posted the "W" word...it wasn't W2R.
Duck and cover folks - Monday is coming and the voodoo queen augurs ill for the market!
But but but - post #27?
wonder if Walmart still needs greeters?
For funds that track an index, no, fund managers do not choose the stocks. An example is VTI - total stock market. The Vanguard computer systems keeps the relative values of its holdings in line with the pertinent index. More info here: https://investor.vanguard.com/etf/profile/VTIWe're fine with our 60/40 AA. I'd like to understand fund management. For instance, you buy the Total Stock Market Fund. Do the fund managers move companies in and out based on their success or failures? Say Apple has the highest number of shares in that fund then Facebook (or whatever) down the line. Then Tesla gets in the mix. Do fund managers rearrange the companies best suited for that fund? Since I don't follow the specific companies in funds, I hope fund managers do.
Wasn't March the lowest drop for YTD? Why would anyone sell in March with having the largest drop so far this year??
I didn't do a thing this time just like 3 bad times I went through in the last 40 years being in the market.
Hey, I'm doing my best here. Don't go fact checking me and screwing things up!
I suspect people who sold in March expect even larger decline to come. Maybe it was panic selling. From past posts there is fair number of them.
Maybe they are right, maybe not.
Buckets and AA aren’t an either or, they are an “and”. They play very well together.Yep. The biggest flaw in using so-called "buckets" is believing you're actually doing something different than if you held exactly the same mix of investments but simply tracked your total AA. The fact you understand you're organizing (in your mind) your assets in a way that propped you up in times of decision induced stress, but you haven't actually done anything different with your investments, marks you as "getting it."
I do a tiny amount of so-called bucketing, but mostly for DW's benefit. We have enough cash equivalent funds at our local B and M bank that, when coupled with pension + SS, would carry us for 2 - 3 years. DW manages that and only looks occasionally at the bottom line of our brokerage accounts which I manage with an AA outlook. Keeps her from fretting about market variation. Keeps me from wading into too many day to day budget details.
Probably shouldn't call it a "bucket" approach. More like a tub and a thimble.
+1
Politics / elections would be the last thing influencing my investment decissions.
Thanks. Your remedy seems complicated. I have no idea how to build my own portfolio with confidence. Best of luck, looks like it's working for you.For funds that track an index, no, fund managers do not choose the stocks. An example is VTI - total stock market. The Vanguard computer systems keeps the relative values of its holdings in line with the pertinent index. More info here: https://investor.vanguard.com/etf/profile/VTI
Similar strategies are followed for other funds and ETFs that are based in stock indices (VOO = S&P 500, for example). It’s my understanding that means that even if known stressors are approaching, the fund holds the stock as long as the index does.
This is one of the reasons that I divested about 75% of my equities from index ETFs in March, before the worst of the drops. Since then, I’ve built my own portfolio up, buying on dips, for stocks I like. It’s a lot of work. Thank goodness for Vanguard’s free trades, or I couldn’t do this. We are almost back up to our all-time high. I have just over 50% in cash, with limit orders set to execute on any upcoming hard dips. I’m really happy to have such a high percentage of cash at the moment, and I will welcome the addition of high quality stocks to my portfolio on any upcoming dips.
Generally I agree. But if a new administration brings an expected large corporate tax hike, stocks will take a large haircut.