I see SPY as about 140 at jan 2007 and 89 at Jan 2009, hitting a low of about 76.
So if you were 100% in stocks without cash, that would have been some puckering, I suspect. My Intermediate Treasure fund was up 8% 1 yr in jan '09; 14% since I bought it in Sep '07. Everything else was red, red, red, red, red, red. Since I wasn't yet retired, I bought Fidelity Contra and China and Biotech with the Treasury fund proceeds. If I had been retired, I would have sold Treasury fund for subsistence.
11 years later from Jan '07 the SPY is 209 from 140.
Woot! (this does not factor in dividends, however).
This doesn't mean much; however again I would point out if for nothing else bonds or cash helps mitigate sequence of returns risk. The measure of how much you would have in your portfolio after the debacle is not a good measure, or at least I don't think so. Unless you want to risk your well-being to leave a nice nut for your kids or charity, which also is an admirable goal--just not mine.
As Shakespeare says, timing is all (and bonds are underrated, at least when you are withdrawing funds to live on in a crash).
None of this applies if you are accumulating.
So if you were 100% in stocks without cash, that would have been some puckering, I suspect. My Intermediate Treasure fund was up 8% 1 yr in jan '09; 14% since I bought it in Sep '07. Everything else was red, red, red, red, red, red. Since I wasn't yet retired, I bought Fidelity Contra and China and Biotech with the Treasury fund proceeds. If I had been retired, I would have sold Treasury fund for subsistence.
11 years later from Jan '07 the SPY is 209 from 140.
Woot! (this does not factor in dividends, however).
This doesn't mean much; however again I would point out if for nothing else bonds or cash helps mitigate sequence of returns risk. The measure of how much you would have in your portfolio after the debacle is not a good measure, or at least I don't think so. Unless you want to risk your well-being to leave a nice nut for your kids or charity, which also is an admirable goal--just not mine.
As Shakespeare says, timing is all (and bonds are underrated, at least when you are withdrawing funds to live on in a crash).
None of this applies if you are accumulating.
so how did it compare 9 yrs out?
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