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:
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.