Everyone in the news seems excited about stocks for the remainder of the year. I am too, but the indexes are high at the moment, and I only buy when they are low. So, no activity for tomorrow unless something really drastic happens. If stocks remain high, when payday comes on the 15th I'll put 100% of my 401k contribution into the Stable Value Fund so I can use the money to buy stocks later next time they're down.
This is the time to sit back and relax and enjoy the gains on all the stocks we bought when they were low in June through September.
Personal Rate of Return for year to date: 14.1%
Allocations:
31.47% Large Company Index (S&P500)
31.37% Small/Mid Cap Index (Russell 2500)
12.95% European Stock Index (MSCI® Europe Index)
10.35% Int'l Stock Mkt Index (MSCI® All Country World Ex-USA Investable Market Indx)
4.72% Pacific Stock Index (MSCI® Pacific Index)
2.67% Company Stock
6.47% Stable Value Fund
To be honest I think I could do just as well with just an S&P 500 index, one of the small Russell indexes, and the Stable Value, but I guess in theory this spreads out the risk more. I've noticed all the world stock indexes tend to go up and down pretty much together.
They say we should buy low and sell high, but almost no one does it. So as my stock holdings crashed in 2008 I thought to myself, what if I tried it? What if I actually buy stocks when they are low and sell them when they are high, instead of just saying one ought to? It may be crazy but that is just the real life experiment unfolding here. In 30 short years we shall know the answer! Here are the results so far.
2010 Rate of Return: 17.0% (S&P 500 was 14.72% Total Return)
2009 Rate of Return: 29.4% (S&P 500 was 26.46% Total Return)
2009 Rate of Return: 29.4% (S&P 500 was 26.46% Total Return)
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