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Home > How My Boring Portfolio Did: Today vs. Friday

How My Boring Portfolio Did: Today vs. Friday

September 15th, 2008 at 07:37 pm

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:

Text is http://scfr.savingadvice.com/2008/02/25/peekaboo_35981/ and Link is

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.

8 Responses to “How My Boring Portfolio Did: Today vs. Friday”

  1. Broken Arrow Says:

    I dunno... perhaps those who can just have a hole in the head. hehe.

    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.

  2. monkeymama Says:

    A one day drop in the stock market doesn't bother me in the least. Thinking long-term. (I don't retire for 30 years???)

    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).

  3. fern Says:

    Yeah, i'm with monkeymama....i must have a fairly strong stomach for risk becus i really don't angst too much over day to day fluctuations. I am a bit concerned about how long the current market will continue, but becus all my savings are really earmarked for retirement, long-term, i figure that's enough time for things to turn around. I must be 80% stocks/20% bonds right now, fairly aggressive.

    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.

  4. Aleta Says:

    You can get the updated funds prices at around 6:00PM every evening especially if you have it set up on your Browsers financial page.

    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.

  5. M E 2 Says:

    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.

  6. baselle Says:

    I pruned my stock exposure a bit over a year ago, and most of my inherited money is still in cash. Not too bad, about 5% off. My DRP portfolio is down about 15% this year... mostly due to the one bank stock not talked about (in other words not WaMu!) which during this crisis seems to be doing much better. Fingers crossed that this bank will be one of the survivors. Its a little like the thrift store - lots of nice chances to pick up some brand names much cheaper than it would be otherwise.

  7. terri77 Says:

    I didn't calculate how much I was down. Not enough to worry me. In fact I took it as an opportunity to buy. Today the market was up some, but not enough to compensate for the recent loss.

  8. MileHighGal Says:

    Argh, I'm still mostly in the index funds. I know those are taking a beating right now and I'm almost too scared to check. And on NPR yesterday they mentioned that Treasury returns are practically in the negative. Since I don't want to buy commodities either I'm not sure what to do... Maybe some bond funds. The scary thing is that none of my investments have been keeping up with inflation (money market, house, m funds) for the past few years.

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