UnThreaded | Threaded | Whole Thread (27) | Ignore Thread Prev | Next
Author: babyfrog Big red star, 1000 posts Old School Fool Home Fool CAPS All Star Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 77082  
Subject: Re: How low do I let it go? Date: 6/14/2002 2:02 PM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 5
The S&P 500 index fund in my 401(k) is crashing and burning. It is down over 10% for the year...the NAV is down to about $9.
How low do I let it go before I buy more of it?

Timing the market is a very dangerous game. The lucky win more often than the smart. If I knew how to time the market, I certainly would not be working today! I'd've taken $100 and parlayed it into several billion, and I'd be sitting on my own private island somewhere.

The answer to your question can only be found inside of you. What is your comfort level? What level would you be happy with owning more shares of that index fund? If you invested today, at $9.00, and the value dropped to $7.00, would you kick yourself for getting in too high? Alternatively, if you didn't invest today, and the value skyrocketed to $12.00, would you kick yourself for sitting on the sideline?

Following the day-to-day gyrations of the stockmarket is a sure way to get an ulcer. Planning your investment strategy on current price, and not on a comparison between price and underlying value is a certain way to get slaughtered.
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (27) | Ignore Thread Prev | Next


The Retire Early Home Page
Discussion on accelerating retirement day.
Foolanthropy 2014!
By working with young, first-time moms, Nurse-Family Partnership is able to truly change lives – for generations to come.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Post of the Day:
Value Hounds

Waiting for Clarity
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.