Typically, I wait to check our mutual funds' balances until the end of the month. But when I heard the news over the weekend about Lehman & Merrill, I thought it might be "fun" to check our balances at the close of business Friday and the close of business today, in order to share how a boring (conservative) portfolio like ours does on a day when the stock market goes down big time.
For anyone interested in a recap of our conservative portfolio, and the reasons behind it, and how I understand that it is not for most people, you can check out this post:
http://scfr.savingadvice.com/2008/02/25/peekaboo_35981/
I'm sure you're all sick of hearing it, but here's a recap of the stock market today:
Dow down 4.4%
S&P 500 down 4.6%
NASDAQ down 3.6%
And here's how our funds did today:
Vanguard LifeStrategy Conservative Growth down 2.3% (from $15.83 to $15.47)
Vanguard STAR down 2.5% (from $18.68 to $18.22)
Vanguard Balanced Index down 2.5% (from $20.29 to $19.78)
Overall, our mutual funds are down 2.3% today compared to where they were on Friday. I can live with that. I'm not going to change a thing. I just cannot stomach wild swings (due to my fairly low tolerance for risk combined with the risk involved in owning a business). But 2.5% down compared to 4.6% down for the S&P is something I can handle. In fact, it's days like today that make me glad I'm invested the way I am.
And to those of you who are invested heavily in the stock market ... who have a high risk tolerance and are taking this crazy market in stride ... I salute you! Really, you are to be admired.
How My Boring Portfolio Did: Today vs. Friday
September 15th, 2008 at 07:37 pm
September 15th, 2008 at 08:12 pm
Your funds updated pretty quick. I usually have to wait until the next day to find out the results?
But then, I'm currently not with Vanguard....
But anyways, yeah, for those who are properly diversified, this shouldn't be a big deal at all. Exactly why diversification is there.
September 15th, 2008 at 09:09 pm
The older we get and the more we amass the more conservative we will get, for sure. Since we do tend to run conservative. But the only thing worse than having a bad day/month/year is not investing enough early in the game.
(Actually, my entire portfolio excluding cash is only down 2.3% today and I am about 80% stocks).
September 16th, 2008 at 05:59 am
I do cringe a bit when i look at my monthly statements, but i dont' dwell on it. I think of these times as a great buying opportunity, tho i currently need to build up cash.
September 16th, 2008 at 08:04 am
My target fund was off 2.68%. The poor Total Market Index Fund was off 4.60%(Ouch). I, like scfr can live with the 2.68% for the retirement fund.
September 16th, 2008 at 10:03 am
Agreed, add me to the "can't/won't retire for 30 years" camp.
Also, have neither the time nor the inclination to keep that kind of tabs on my "401-k".
Plus all the experts advise that you don't dwell on it either. Especially if/when you are in it for the so-called long haul.
September 16th, 2008 at 02:50 pm
September 16th, 2008 at 06:04 pm
September 22nd, 2008 at 08:16 am