After my FFCB bond was called in December, I’ve been mulling over what I should do with the proceeds. I decided to use the money for my 2008 IRA contribution and buy more REITs there. The Vanguard REIT ETF (VNQ) dropped 25% in the last 3 months, causing it to be the asset class which lags behind my target allocation the most. Just as when I bought more REITs last summer, I have no idea whether it will go further down or not, or whether it’s overvalued or undervalued. In hindsight, I should’ve waited last year. But who knew? I’m low on REITs now according to my asset allocation. So I’ve bought more. It’s all mechanical.
I get pretty excited when the market goes down. I’m like a kid in a candy store. Everything looks good when it’s cheaper. I hope the market stays down while I’m buying.
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Ernesto says
Hmmm, haven’t bought REITs in awhile, I’ll have to give them a look.
I’ve got too much in cash anyway.
Anonymous says
C’mon, where’s your sense of adventure? TRAMX (http://finance.google.com/finance?q=tramx) all the way!!
I love VG index funds and ETFs, but, sometimes in life you’ve gotta take some crazy risks just for fun.
Anonymous says
Hello TBF, a question for you. If you were to set up a new IRA and pour some cash into it (200K), would you go ahead and dive right in or wait and time? For example, VTI is way down now, so is EEM and other ETFs. Would you consider gradually moving in (say 10% each month?)
Harry Sit says
I answered the question in a new post:
Buy Now Or Buy Gradually Over Time?