马虎活得糊糊涂涂，糊涂做事马马虎虎
难得糊涂。望能帮助大家解答投资理财的问题。使大家在投资理财的过程中， 不马马虎虎以及不糊糊涂涂被人忽悠, 尽快实现财务自由。
We have always heard the people talking about the stock market. Some will say when the market will crash, or when the market will reach a level, or when you should buy this, or when you should sell that, etc. But in reality, no one knows when the market will go up or come down. If someone is telling you that he/she knows, they are lying.
Investment is a long-term process. You should be consistent and steady. The following two examples demonstrate why you should never time the market. We will use Vanguard Total Stock Market Index ETF symbol VTI prices.
1st example shows that the investor does not time the market whether the stock market is up or down.
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Vanguard Total Stock Market Index ETF (VTI) without buying / selling |
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|
Date |
No. of Shares |
VTI Price |
Total |
Notes |
|
10/9/2007 |
12,862 |
77.75 |
1,000,020 |
The portfolio reached $1M |
|
1/17/2018 |
12,862 |
141.35 |
1,818,043 |
|
2nd example shows that the investor going in to and out of the stock market twice in the past 10 years.
|
Vanguard Total Stock Market Index ETF (VTI) with buying / selling |
||||
|
Date |
No. of Shares |
VTI Price |
Total |
Notes |
|
10/9/2007 |
12,862 |
77.75 |
1,000,020 |
The portfolio reached $1M |
|
9/15/2008 |
12,862 |
33.70 |
433,449 |
Sold when Lehman Brother filing for bankruptcy |
|
3/9/2011 |
6,342 |
68.35 |
433,449 |
Going into the market again |
|
11/8/2016 |
6,342 |
109.62 |
695,210 |
Sold when Trump was elected |
|
5/8/2017 |
5,645 |
123.14 |
695,210 |
Bought when the market kept going up |
|
1/17/2018 |
5,645 |
141.35 |
798,018 |
|
You can see the results which is very significant, the difference is about over $1M. Of course, I might use an extreme example, but there are a lot of people who time the market without knowing the consequence.
