Comments on: Watching a Car Crash http://blog.canadian-dream-free-at-45.com/2008/07/16/watching-a-car-crash/ Wed, 08 Feb 2012 17:31:40 +0000 hourly 1 http://wordpress.org/?v=3.1 By: A Lap Of The Blogs : WhereDoesAllMyMoneyGo.com http://blog.canadian-dream-free-at-45.com/2008/07/16/watching-a-car-crash/comment-page-1/#comment-6502 A Lap Of The Blogs : WhereDoesAllMyMoneyGo.com Fri, 18 Jul 2008 08:01:54 +0000 http://blog.canadian-dream-free-at-45.com/?p=471#comment-6502 [...] Dream: Free at 45 likens monitoring his investments to watching a car crash - and thinks it might be best to just focus on other things for a while and not get caught up in [...] [...] Dream: Free at 45 likens monitoring his investments to watching a car crash – and thinks it might be best to just focus on other things for a while and not get caught up in [...]

]]> By: Canadian Dream http://blog.canadian-dream-free-at-45.com/2008/07/16/watching-a-car-crash/comment-page-1/#comment-6480 Canadian Dream Thu, 17 Jul 2008 12:04:34 +0000 http://blog.canadian-dream-free-at-45.com/?p=471#comment-6480 Pragmatic, Actually Old Dude has a point. The fees you pay on active funds act like a dead weight during a market down turn. Index investing is more about getting the average performance rather than shooting for higher gains. Matt, Yes dollar cost averaging can help. The issue for some index investors is if you switch to EFT's and are only putting in money one a quarter or twice a year. Then you have to really watch when you put in the cash. Qcash, Yes I wish I had more cash right now to pick up some stocks. The issue for me personally is the cash buffer is lower than normal so I'm going to be sitting on my hands until I can build up a bigger buffer again. *sigh* Tim Pragmatic,

Actually Old Dude has a point. The fees you pay on active funds act like a dead weight during a market down turn. Index investing is more about getting the average performance rather than shooting for higher gains.

Matt,

Yes dollar cost averaging can help. The issue for some index investors is if you switch to EFT’s and are only putting in money one a quarter or twice a year. Then you have to really watch when you put in the cash.

Qcash,

Yes I wish I had more cash right now to pick up some stocks. The issue for me personally is the cash buffer is lower than normal so I’m going to be sitting on my hands until I can build up a bigger buffer again. *sigh*

Tim

]]> By: Qcash http://blog.canadian-dream-free-at-45.com/2008/07/16/watching-a-car-crash/comment-page-1/#comment-6479 Qcash Thu, 17 Jul 2008 11:47:09 +0000 http://blog.canadian-dream-free-at-45.com/?p=471#comment-6479 I look at these tumbles as buying oppotunities. I also have to take a break from watching the news from time to time, but since I have structured my portfolio to concentrate more on the dividend income than the growth in capital, these are good buying times. I worry about those who have to liquidate part of their capital to make ends meet. That is the problem. Q I look at these tumbles as buying oppotunities. I also have to take a break from watching the news from time to time, but since I have structured my portfolio to concentrate more on the dividend income than the growth in capital, these are good buying times.

I worry about those who have to liquidate part of their capital to make ends meet. That is the problem.

Q

]]> By: Matt http://blog.canadian-dream-free-at-45.com/2008/07/16/watching-a-car-crash/comment-page-1/#comment-6472 Matt Thu, 17 Jul 2008 07:50:03 +0000 http://blog.canadian-dream-free-at-45.com/?p=471#comment-6472 I think index investing is only supposed to work if you invest the same amount regularly each month. That prevents your cost basis from getting too high because you buy more when the market is low and less when the market is high. If you invest irregularly in index funds, then it becomes just like any other stock. You have a better chance of getting burned if you don't buy at the right time. I think index investing is only supposed to work if you invest the same amount regularly each month. That prevents your cost basis from getting too high because you buy more when the market is low and less when the market is high.

If you invest irregularly in index funds, then it becomes just like any other stock. You have a better chance of getting burned if you don’t buy at the right time.

]]> By: Old Dude http://blog.canadian-dream-free-at-45.com/2008/07/16/watching-a-car-crash/comment-page-1/#comment-6463 Old Dude Thu, 17 Jul 2008 02:44:47 +0000 http://blog.canadian-dream-free-at-45.com/?p=471#comment-6463 Pragmatic Then there must be alot of hapless managers, of 1368 Canadian mutual funds only 66 are managing to beat the ishares 60 index Etf. Pragmatic
Then there must be alot of hapless managers, of 1368 Canadian mutual funds only 66 are managing to beat the ishares 60 index Etf.

]]> By: Pragmatic http://blog.canadian-dream-free-at-45.com/2008/07/16/watching-a-car-crash/comment-page-1/#comment-6447 Pragmatic Wed, 16 Jul 2008 19:57:21 +0000 http://blog.canadian-dream-free-at-45.com/?p=471#comment-6447 Market crash is one reason why index investing doesn't always work. On the upside, the index investments probably outperform 80% of active manager. On a down market the managers will outperform the index (unless that manager is hapless - then your SOL). As for market watching. Yeah, pain all over. my gut wrenches. Market crash is one reason why index investing doesn’t always work. On the upside, the index investments probably outperform 80% of active manager. On a down market the managers will outperform the index (unless that manager is hapless – then your SOL).

As for market watching. Yeah, pain all over. my gut wrenches.

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