I'm ready to move my $ out of the stock market. Can you help me pick a fund?

[Snydley]

Hi- I've decided to move my $ out of the stock market for a while, and later I will invest in some individual companies that operate in line with my values. I'm not sure which Vanguard account to choose, there are so many Bond/ETF accounts and I don't know which to choose, or if I can/should choose cash holdings? I'm looking for a stable place to put the $. I moved my work retirement $ to VIPIX (not sure if this was the right choice). TIA

[kork13]

Would you be open to discussing "why now"? The last few days have been bloody, to be sure .... But in the middle of a drop (which has thus far wiped out gains from the last 6 months) isn't a great time to be divesting. If this is in line with a long-term plan, then that's fine, but still worth considering if right now is the best time to do it.

In any case, understanding your motivations, intentions, timeline, and goals will be useful to best for you toward an appropriate set of alternative investments.

[disneysteve]

Hi- I've decided to move my $ out of the stock market for a while, and later I will invest in some individual companies

So you want to sell at the bottom (or at least on the way down) and wait until prices go back up and then buy in again? Not a great plan.

What's your desired asset allocation? What's your timeline for the money currently held in equities? What have financial calculators shown you regarding where you are in terms of reaching your goals like retirement? Can you still reach those goals with a much smaller equity allocation? And why would you want to replace mutual funds or ETFs with individual stocks? That would introduce phenomenally more risk to your portfolio.

If you want "stability" then don't go with a bond fund. Buy individual bonds that you hold until maturity. Their resale value will fluctuate but you'll get your full principal back at maturity (assuming we are talking about government bonds here that don't have default risk).

[Fishindude77]

Wouldn't ever recommend that anyone have everything in the stock market, but unless you believe there is going to be some sort of complete nationwide economic collapse and failure of most major US business, the stock market is still a smart place to be for investors. Stocks are little pieces of big businesses and many of the businesses have 50-100+ year track records of success. Smart businesses survive and find a way to make money regardless of the political climate or short term conditions. There will always be ups and downs, but you are far more likely to get hurt on a roller coaster when you jump off.

Our personal investments are; real estate, individual stocks, mutual funds and some fixed rate savings.
I think diversification is smart.

Good luck, whatever you decide.

[ua_guy]

I don't think this is the bottom, and I think things could fall a lot farther. I'm even getting nervous despite having time on my side, and locking in a 10% loss right now could still ultimately be beneficial. Even if the money piddles along in a 3% CD for a while, at least it's still making money in a time of wild uncertainty and a future that isn't looking bright. That's not just my outlook, that appears to be the market outlook right now.

I understand values-based investing, and you do what you have to do.

I can't recommend a bond fund. What I am researching for myself is not exiting stocks entirely, but potentially moving to a much more conservatively invested fund. Something like a target date retirement fund with a near term that probably would be much more heavily invested in bonds and lower risk assets. That would shield my assets from "whatever this is" but also not leave me in a lurch trying to manage individual stocks or enter investment markets that I haven't had much experience with.

[Jluke]

You asked this question recently in another thread because I remember replying.

No advice. I’m just watching my investments fall right now, sadly as expected.

[disneysteve]

No advice. I’m just watching my investments fall right now, sadly as expected.

This. The current economic chaos was 100% predictable. I'm not the least bit surprised that it is occurring exactly as expected. We talked about it here quite a bit in recent months. Still, it's no fun to watch. The Dow is down another 700+ points as I type this message.

[QuarterMillionMan]

I don't have much stocks but if I did I would get out now and run towards the hills. We all see it coming especially with decades of quantitative easing and easy money stocks are artificially pumped up at all time highs. It's like a little child who wants candy but not getting the candy the kid will have a major tantrum coming. Ua_guy is spot on that this may not be the bottom. I'll be buying on the way down while everyone else is licking their wounds.

[james.hendrickson]

I don't have much stocks but if I did I would get out now and run towards the hills. We all see it coming especially with decades of quantitative easing and easy money stocks are artificially pumped up at all time highs. It's like a little child who wants candy but not getting the candy the kid will have a major tantrum coming. Ua_guy is spot on that this may not be the bottom. I'll be buying on the way down while everyone else is licking their wounds.

Respectfully, QMM, now is the time to buy.

In fact, I picked up a bit more Coca-Cola stock, and more ALLT.

Just keep buying, the US will be fine.

[ua_guy]

Respectfully, QMM, now is the time to buy.

In fact, I picked up a bit more Coca-Cola stock, and more ALLT.

Just keep buying, the US will be fine.

I question this. If the market is off....picking a round number... 10% from its high, why wouldn't someone want to wait until the market has dropped 20 or 30%.

Granted, I "continue to buy" by way of my paycheck contributions to a retirement account. I buy at the peak, I buy at the lows, as long as my contribution is active. This is yet another strategy, but it doesn't time the market. But for someone hoping to snag a single stock like TSLA or NVDA, now doesn't really feel like much of a discount. Those are two I can identify which are supremely inflated. The economy needs to grow and have a picturesque horizon, which it doesn't have right now by all indicators.

You and QMM are the only ones who have mentioned buying now. Why?

[james.hendrickson]

I question this. If the market is off....picking a round number... 10% from its high, why wouldn't someone want to wait until the market has dropped 20 or 30%.

Granted, I "continue to buy" by way of my paycheck contributions to a retirement account. I buy at the peak, I buy at the lows, as long as my contribution is active. This is yet another strategy, but it doesn't time the market. But for someone hoping to snag a single stock like TSLA or NVDA, now doesn't really feel like much of a discount. Those are two I can identify which are supremely inflated. The economy needs to grow and have a picturesque horizon, which it doesn't have right now by all indicators.

You and QMM are the only ones who have mentioned buying now. Why?

Ua_guy, you can't time the market, so you might as well as well own as many shares as of good companies as you can. Prices go up, they go down. But in the long run, if the company is making money, it will be valuable.

[ua_guy]

Ua_guy, you can't time the market, so you might as well as well own as many shares as of good companies as you can. Prices go up, they go down. But in the long run, if the company is making money, it will be valuable.

Yes, but... let's look at a wider view.

Tesla... still pretty high given its 5 year history.


ALLT... really hasn't done well in the last couple of years.


NVDA... still pretty high given its 5 year history.



I understand everyone has different tolerances and risk profiles, but literally none of these jump out at me as a "buy now" opportunity. Is the strategy like laddering, where you buy high, it falls, you buy more, it falls, buy more, it falls. And then you hope to ride it up someday while you're plugged in at different price points?

ALLT appears to be some cybersecurity company which hasn't followed the success of much larger players over the last couple of years. Why is that one interesting given its relative performance?

[james.hendrickson]

ALLT is interesting because their fundamental economics have changed. They've managed to turn a profit after two bad years. Usually prices trend with earnings. So, to the extent that earnings in the company improve, the share price should also improve.

[james.hendrickson]

Yes, but... let's look at a wider view.

Tesla... still pretty high given its 5 year history.


ALLT... really hasn't done well in the last couple of years.


NVDA... still pretty high given its 5 year history.



I understand everyone has different tolerances and risk profiles, but literally none of these jump out at me as a "buy now" opportunity. Is the strategy like laddering, where you buy high, it falls, you buy more, it falls, buy more, it falls. And then you hope to ride it up someday while you're plugged in at different price points?

ALLT appears to be some cybersecurity company which hasn't followed the success of much larger players over the last couple of years. Why is that one interesting given its relative performance?

Also UA_Guy - your note may show an edit by me. Sorry that was accidental.

[QuarterMillionMan]

The market was on a sugar high for years so I stayed on the sidelines. Now with the tightening and a possible recession looming I'm ready to jump back in.