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)
Wednesday, December 8, 2010
No activity today. Stocks are flat. I'd be tempted to sell some stock, but my balance is in the ballpark of where I want it. My goal for now is about 10% stable value, 90% stock funds. Currently my stock funds are at about 94% of my portfolio, and 100% of my new contributions are going into stable value. That's a good setting for now. If stocks go up, great. If they go down, I'll start buying again and if they go down a lot, I can take that stable value and invest it into stocks as well.
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