I must be crazy!!

[m3racer]

A little off topic....how much do you guys have allocated to international funds? My 401k portfolio has about 30% in international funds. I'm thinking about changing that to 20%. I'm not sure how Orman came up with this % in her new book.

[maat55]

33%. I allocate my roth into three funds.

[EdMitchell]

Hello Everyone, My allocation is 100% stocks on my 401k and I will not re-allocated. I have actually increase to the maximun of 16500.

[m3racer]

Hello Everyone, My allocation is 100% stocks on my 401k and I will not re-allocated. I have actually increase to the maximun of 16500.

What's the specific domestic/foreign allocation % in your portfolio?

[Snodog]

I am 50/50 foreign/domestic.

[Snodog]

You'll never peg the bottom, nor should you try.

Now that I can agree with.

[Broken Arrow]

I don't think this is crazy at all.

I see this as an opportunity to buy more shares for the same amount of money. In fact, in that sense, I personally don't care how low it goes. My retirement is still quite a ways off, so I welcome as much of a discount as possible.

[disneysteve]

I see this as an opportunity to buy more shares for the same amount of money. In fact, in that sense, I personally don't care how low it goes.

I know what you mean, but for the benefit of others, I feel obliged to point out that just because something is cheap doesn't mean it is a good deal. Ultimately, the number of shares of a company that you own is irrelevant. What matters is the value of those shares.

I buy 100 shares of company A at $10/share.
I buy 1,000 shares of company B at $1/share.

At the end of 1 year, both stocks have increased in value by 10%. Since I invested $1,000 in each company, my end result is the same - a profit of $100. The per share price has no bearing on the result.

I think the mistake many people make (and I'm not suggesting this is true of you, BA) is assuming that they are likely to make more money buying the cheaper stock. "Company B only has to go up $1 for me to double my investment." While that's true, that may not be any more likely than the $10 stock going to $20. In fact, it may be less likely since the $1 stock might be dirt cheap for a reason. People use the same faulty logic with stock splits, rushing in to buy after the split because it is now "more affordable" or "a better deal", neither of which is necessarily true.

[kork13]

I know what you mean, but for the benefit of others, I feel obliged to point out that just because something is cheap doesn't mean it is a good deal. Ultimately, the number of shares of a company that you own is irrelevant. What matters is the value of those shares.

But then, this is the beauty of mutual funds.... The extent of your decisions are WHICH ONE to invest in and HOW MUCH to invest. The decisions of knowing which stocks have good value vs. stocks that just happen to be cheap are left to the fund managers, who probably know alot more about it all and can make better, more informed decisions than most individuals. Mutual funds, IMO, are the common investor's saving grace.

[Broken Arrow]

I think the mistake many people make (and I'm not suggesting this is true of you, BA) is assuming that they are likely to make more money buying the cheaper stock. "Company B only has to go up $1 for me to double my investment." While that's true, that may not be any more likely than the $10 stock going to $20. In fact, it may be less likely since the $1 stock might be dirt cheap for a reason. People use the same faulty logic with stock splits, rushing in to buy after the split because it is now "more affordable" or "a better deal", neither of which is necessarily true.

Yes, thank you for clarifying that. I've made that point as well in the past, particularly in the cases of actively trading.

[GrimJack]

I buy Vanguard funds for my IRAs; each year a different fund; each purchase approximately the same - I am lazy that way; when I run out of Vanguard funds (that I like) I will start with TIAA-CREF funds. No 401k available right now, sigh!.

My dividend-producing funds are doing pretty well right now, though some of the dividends have been dropped and i bet the they will trail the market on the way back up too so it might be wash.

[m3racer]

I don't think this is crazy at all.

I see this as an opportunity to buy more shares for the same amount of money. In fact, in that sense, I personally don't care how low it goes. My retirement is still quite a ways off, so I welcome as much of a discount as possible.

That's how I was looking at it.

[LivingAlmostLarge]

I keep buying on and on and on.

[Snodog]

I hear everyone on TV saying don't put anymore $$$ in the market. Run for the hills. Oh well....it's only money...LOL

Interesting to read this thread in retrospect. I'm curious with those who got out of the market. Did you get back in in time? It sure shot up fast.

[Ima saver]

I just stayed put!