Ready
Thinks s/he gets paid by the post
I did my annual rebalancing last year on December 9th by selling some Vanguard index funds and moving the money into bonds. I was thinking this turned out to be a great move, now that the market has dropped 6% in the past month. However, when I went back and looked at what I sold the stocks for on December 9th, here were the closing prices:
VTSAX $45.78
VTIAX $27.61
And here are the closing prices today:
VTSAX $44.14
VTIAX $26.23
A drop in price of 3.6% and 5%. So the drop is not quite as big as I would have thought, because there was a significant run up in just the last few weeks of December. So I suspect that we really only lost about the last month of gains in the market, and are still up all the gains we saw through November of last year.
For some reason it always seems a lot worse when looking at the Dow Jones numbers and reading all the news reports.
VTSAX $45.78
VTIAX $27.61
And here are the closing prices today:
VTSAX $44.14
VTIAX $26.23
A drop in price of 3.6% and 5%. So the drop is not quite as big as I would have thought, because there was a significant run up in just the last few weeks of December. So I suspect that we really only lost about the last month of gains in the market, and are still up all the gains we saw through November of last year.
For some reason it always seems a lot worse when looking at the Dow Jones numbers and reading all the news reports.