Friday the 13th DOW shenanigans

[SeanPizzle]

So I moved a bunch of money yesterday to buy more of my Three funds at Schwab this AM. Well, they dont buy the funds until after the trading day. So I watched the Dow go from 21815 to 23185 in the last 25 minutes of the day. I'm should bought ETFs instead of index funds so I didnt have to wait. Its infuriating that the FED magically pumps $1.5T in the market to prop up the very wealth and the little people get crushed.

(I know, dont time the market)

 

[aja8888]

So I moved a bunch of money yesterday to buy more of my Three funds at Schwab this AM. Well, they dont buy the funds until after the trading day. So I watched the Dow go from 21815 to 23185 in the last 25 minutes of the day. I'm should bought ETFs instead of index funds so I didnt have to wait. Its infuriating that the FED magically pumps $1.5T in the market to prop up the very wealth and the little people get crushed.

(I know, dont time the market)

You will have another opportunity to buy those funds, but I would just buy the corresponding ETF since you can buy those immediately.

 

[NW-Bound]

I have stopped buying MF a long time ago. I prefer to know the exact price when I buy/sell something.

But if you do not have good luck this time with your MF, maybe next time it can work in your favor. The market may drop during the day when you would have bought an ETF, and your MF would be priced lower at market close. Luck can work both ways.

 

[ERD50]

I have stopped buying MF a long time ago. I prefer to know the exact price when I buy/sell something.

But if you do not have good luck this time with your MF, maybe next time it can work in your favor. The market may drop during the day when you would have bought an ETF, and your MF would be priced lower at market close. Luck can work both ways.

Yep, I just attempted a sideways move to get out of some old funds I had, along with some tax loss harvesting so that I could get into ETFs w/o a big tax consequence. Though I don't make moves often, I just prefer to be able to buy/sell at the same time, and not worry about what the after market settled price is on a Mutual Fund.

Years from now, I know it won't matter, the delta will be minuscule, and as you say, should average out. It's just nice to be "clean" about it.

-ERD50

 

[Telly]

For those who are retired (me!), the delay with mutual funds really hasn't been an issue. Since I can watch the market before close, I can set up whatever I wanted to do shortly before close, and issue it in the last x minutes. Usually use TV on CNBC as the status. Sometimes there are rallies in the last hour/half hour, though for me that has been relatively rare. If the market at say 2 hours before close is already moving in a direction and rate of change that I don't want to execute with, I turn off the TV and resume retirement

I realize that those who are working in the later afternoon (depending on your time zone), may not have this luxury

 

[MRG]

In a couple years the difference won't be noticed. Yes, funds trade at the end of the day after the closing price is determined. ETFs are priced during the market and bid upon as equity trades are.

 

[VanWinkle]

The bright side is there is no spread to worry about with the MF. This is a minor advantage, but it does count.

 

[audreyh1]

The bright side is there is no spread to worry about with the MF. This is a minor advantage, but it does count.

For me the convenience outweighs the other issues. I’m not trying to precisely catch the bottom anyway. End of day is just fine with me. Yes, I prefer to buy or sell MFs on low volatility days, but in the long run it doesn’t matter IMO.

Seeing how far HYMB strayed from underlying NAV on Thursday was an eye-opener.

And super high volume days often have folks reporting they are having trouble accessing their brokerage account, or placing orders.