Comments | kanzeon_2040: Vanguard winners and losers 2007

kanzeon_2040

Vanguard winners and losers 2007

Jan 01, 2008 12:25

Vanguard is a not-for-profit mutual fund company with the lowest fees in the business. That's why I keep some of my extra money with them. Right now my Vanguard money is split between the Prime Money Market Fund (up 5.14%) and the STAR Balanced Fund (up 6.58 ( Read more... )

2007, econ

Comments 4

Diving back in.... spiritquest January 2 2008, 22:38:52 UTC

A coworker pointed out to me today that 2007 was a wash for the big indices if you adjusted for inflation. I didn't believe him until I investigated myself. Sure enough, its true. I just didn't notice because I got out and my numbers were still respectable.

92 days ago I got out. Today, with the little tumble being the clincher, I decided to get back in. All or nothing, baby! No incremental buying for me.

My central reasoning being... if I was comfortable with January 2nd 2007 values, I should also be comfortable with January 2nd 2008. There has been no net change, and the world still looks like the same world to me. The question I ask myself when I look at the index, both then and now is.... "can things really be that good?" Today my answer is yes.

I need to get a wheel of fortune icon.

spiritquest January 2 2008, 22:57:48 UTC

You know, I don't see myself as gambling or investing at all. Its neither of the above. In addition to the question "Can things really be this good?", I also sometimes ask "Do we think too much of ourselves?" Its not that much different than buying an ipod or a Wii. I will find myself thinking "You want how much??? For that???" or "do I actually deserve this?" Its not about turning the biggest profit -- Its a moral choice, like a judge's sentence. By buying into the market, I'm saying -- okay, world, I believe you. By selling, I'm saying -- world, you're delusional.

If I were picking individual stocks, I'd probably feel like I was gambling, but for me its only binary -- in or out.

kanzeon_2040 January 3 2008, 12:29:30 UTC

Which fund did you buy into?

I hope you continue to believe in the world if stocks enter a bear market and the US economy enters a recession. I'd hate to see you sell at or near the bottom. Just hang on for the ride!

spiritquest January 3 2008, 17:30:38 UTC

Fidelity calls it "US Large Co Indx Mgmt" -- it was what I was invested in before I made the switch to PRRIX. I believe its tied to the DJIA.

Unless its either out of the necessity of actually needing the money or some fly ball from the government that lets us withdraw 401k money without penalty then I have to be invested in something. PRRIX can go down too (the bonds themselves don't of course but the price of the fund does). Its really a game, because I don't think I'm going to make it to 59.5 anyway. My *real* money is in CDs as always -- those don't go down.