Made back all my money after VTI tanked leaving me in the hole 250%. Thanks to the guys over at Ultimate Stock Alerts (do a Google search for them)
He is right, you are wrong..................
Unfortunately, bob is rich. he has $40 million + and unfortunately most of his money came from inheritance and the other portion from real estate/rent payments on his income properties. don't let this guy fool you into believing that he made it on the stock market. not a chance. and, don't believe that you are about to do any better. every 7 to 10 years, the u.s. Stock market crashes by at least 60 to 75%. this advance will eventually meet the same demise. just be aware of this and hold onto your money. let the other margin folks who are also hopped up on credit debt, play with the advice of bob and others. just save using your job and your own understanding of how to budget, and you will do far better over time than being in the stock market. I did just fine and didn't follow one bit of bob brinker's voodoo letter hyped investments. vt is just one of them. beware and be safe. have a wonderful life, my friends! gordon
Absolutely ! ... As long as someone leaves you $10 to 20 million dollars to start your investing with, you'll be in happyville in no time flat. please understand that bob brinker is simply stretching the truth. please listen closely to bob's sunday radio broadcasts. every sunday, bob takes callers who have a question to ask bob on the air. it's so obvious that one or two / per / sunday broadcast is staged (a rigged free-ad for bob's newsletter and other services). these phantom callers praise bob for the entire time they are on the air. bob is losing popularity, unfortunately, so he is resorting to whatever is in his "control". also, please know that bob gets almost all of his timing data from his good old friend over at vanguard. if it wasn't for john bogle, bob would have had no marketimer. rememember that it's not what you know, it's who you know on wall street. bogle is able to give brinker very specific and key pieces of money flow data points that bob can use to plot and time the market during major selloffs , but it's not nearly as reliable at market tops. and, this is why bob has a much better history of buying the dips in the market, than he does at timing key and pivotal tops. he completely blew it in 2007, 2008 and 2009 when the market took a dive from a major high. bob road this entire dive and told his worshipers to stay invested all the way down (- 60 %) . also, in 1999, bob told his markettimer payers/subscribers to buy "qqq", the etf for tracking the nasdaq-100. after telling his newsletter buyers to buy qqq, the etf immediately fell 20% and he bagan to get bad feedback. ever since, you will see plenty of google "nasty blogs and unhappy posts" on bob brinker and markettimer. to demonstrate bob's despiration today, he has force all of his major am talk radio stations, where he holds his sunday radio show "moneytalk", to disallow their am radio station listeners to pull up moneytalk on their 7-day archived shows. Bob, bob, bob!!!
Whether VTI is held in a tax-sheltered or non-tax-sheltered account makes a big difference in the results of rebalancing. If you have to pay tax on gains each time you rebalance, you'll have less to reinvest. Also, I feel you're too likely to zig when you should have zagged, and the results can be discouraging. I like the strategy of buying the most diversified investment available (i.e. VTI) and just staying with it indefinitely. By minimizing taxes, you're almost guaranteed to come out ahead. The fund or ETF will automatically rebalance as big companies get smaller and small companies get bigger. Moving between domestic stocks and international stocks or between stocks and bonds just means more opportunities for making mistakes in timing. I like the Vanguard strategy of "Stay the course." (When I was a stock broker many years ago, those words would have never crossed my lips.)
I was a stock picker. Not too great results and very time consuming. Now doing better with low fee index and ETF and doing much better. Thinking about trying rebalancing. Have to read Solin's book again. I think it would be difficult to do relbalancing with individual stock. Certainly like VTI.
Great advice. Might just add to read Solin's book on investing (can't remember the title but recommends low fee index funds and ETF- he especially likes Fidelity and Vanguard.
There was a "famous" research paper which showed that the best predictor of long term financial performance was asset allocation. That's the motivation behind rebalancing.
Since we can't predict which assets will 'win', put money on each, wait for a period of time - quarter/annual, spread/rebalance for the next round. Since total values increase over time, you end with more.
VTI may be a form of automatic rebalancing across many assets through the large number of stocks it holds.
Gains are enhanced by the low fee/cost of ownership - not paying to buy/sell to rebalance.
Looking to buy ~$105
We're in total agreement. Markets move in cycles, and it's sometimes beneficial to adjust accordingly. However, I've found that attempts at short term market timing is a waste of time and money. I'm a stock picker, but I've found that VTI generally outperforms in the long term. It's not nearly as much fun, but it's more profitable for the vast majority of people including the so-called "professionals." Boa sorte!
Investing since 1965 with better than average results and have never re balanced but have changed direction from conservative to aggressive many times. I'm a stock picker.
quadruple? Really how? Is an index fund therefore the stock market quadruple? Thanks for answer and again where is video?
While I don’t personally believe in “rebalancing” as an investment strategy, I keep seeing and hearing advice from so-called experts to periodically adjust to market changes. The old adage that the fixed-income portion of a portfolio should equal the age of the investor strikes me as seriously flawed. I’m curious about what, if any, experience other people here have had with rebalancing.