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  • Reacting to Markets

    With the Markets up nearly 2% over the past few days, I'm curious what people do..... Nothing or sell off portion of gains from stocks and invest bonds?

  • #2




    With the Markets up nearly 2% over the past few days, I’m curious what people do….. Nothing or sell off portion of gains from stocks and invest bonds?
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    We rebalance annually. If this is your rebalance date, then rebalance, but market timing (described above) is not rebalancing. Your financial plan should dictate your investment decisions.
    Working to protect good doctors from bad advisors. Fox & Co CPAs, Fox & Co Wealth Mgmt. 270-247-6087

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    • #3
      i just rolled over $117K from old 401k to tIRA and I'm not sure what to do now. Should I buy as I planned, or wait a couple of days to see what will happen?

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      • #4
        I continue to DCA into my taxable accounts and my wife's 401k with our established allocations and ignore the noise.

        In my "play" account at Robin Hood, I bought 3 shares of Visa (V) yesterday.

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        • #5
          LOL.  I ejected my stocks in my play account two weeks ago just before vaca to Costa Rica.   Had amassed a small fortune over the years in that account with the likes of Amzn, BOA, V and needed to eject.   Seemed 'smart' until this week.   But alas, time to find some more pearls and wildcatting.

          There's a difference between retirement and play accounts.   Retirement -- stick to the plan that you setup.   For Play/Gamble/Speculation -- whatever you want to call it.   Matter of taste and fun with it.

           

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          • #6




            i just rolled over $117K from old 401k to tIRA and I’m not sure what to do now. Should I buy as I planned, or wait a couple of days to see what will happen?
            Click to expand...


            It's a dangerous game to play to wait for the "right time". When you have a lump sum, go ahead and invest it.
            Working to protect good doctors from bad advisors. Fox & Co CPAs, Fox & Co Wealth Mgmt. 270-247-6087

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            • #7
              I ignore upward moves as noise and just continue my monthly investments.  Now, when the market falls in increments of 5% moves, I do look to add more than my typical monthly amount.  I look to see if rebalancing bands have been reached or are close.  Otherwise I just watch annually to see if it is time to rebalance.

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              • #8







                i just rolled over $117K from old 401k to tIRA and I’m not sure what to do now. Should I buy as I planned, or wait a couple of days to see what will happen?
                Click to expand…


                It’s a dangerous game to play to wait for the “right time”. When you have a lump sum, go ahead and invest it.
                Click to expand...


                Thanks Johanna!

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                • #9
                  Nothing.

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                  • #10
                    I tune out the noise and stick with my investment plan.

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                    • #11
                      Do not market time.  Invest now.  Rebalance based upon whether you are out of tolerance in your portfolios.  We monitor more closely if the portfolio is 5% out of balance  That does not mean to trade at that point.  Just monitor more closely.  Other considerations include taxes and trade fees incurred.  Most importantly, stick to your investment policy statement.

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                      • #12
                        It is interesting that market timing has been downplayed to a significant extent and a lot of emphasis has been laid on buy and hold strategy with rebalancing and diversification. What does market timing mean? I am curious why there is a negative sentiment with market timing. If anyone can let me know their thoughts on this, I would appreciate it.

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                        • #13




                          It is interesting that market timing has been downplayed to a significant extent and a lot of emphasis has been laid on buy and hold strategy with rebalancing and diversification. What does market timing mean? I am curious why there is a negative sentiment with market timing. If anyone can let me know their thoughts on this, I would appreciate it.
                          Click to expand...


                          WCI's thoughts on the matter

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                          • #14




                            It is interesting that market timing has been downplayed to a significant extent and a lot of emphasis has been laid on buy and hold strategy with rebalancing and diversification. What does market timing mean? I am curious why there is a negative sentiment with market timing. If anyone can let me know their thoughts on this, I would appreciate it.
                            Click to expand...


                            Because it is well known that nobody - not can consistently time the market. The Dalbar studies are a good example. My favorite quote regarding market-timing is, "The only function of economic forecasting is to make astrology look respectful." John Kenneth Galbraith, Economist

                            It's 3 1/2 years old, but this remains one of my favorite examples to show clients and it could easily be extended through the present: The Idiot-Maker Rally
                            Working to protect good doctors from bad advisors. Fox & Co CPAs, Fox & Co Wealth Mgmt. 270-247-6087

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                            • #15
                              So I see a few things here:
                              First, there are two claims - 'Nobody can time' and 'time consistently' Is that really true? All we see are people who come out in public and make these claims about future direction. What if there are people who are doing it consistently but choose not to come out and claim because now it is their secret recipe that they would be sharing? Not claiming anything but all I am suggesting is could there be a possibility of success that is unshared?
                              Secondly, that link showed all these people making claims on future direction. Is making future predictions on directions called as market timing, or is it something different? What do people think of when they hear 'market timing' and what do you all think it entails?

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