3 Replies to “The Deep Value ETF Accumulator 1-15-19”
Micah,
I have really enjoyed following your posts and daily updates for the past couple months. It has inspired me to make my own spreadsheets to monitor different ETFs.
What are your thoughts on funds that haven’t reached “Bear” mode, but the current price is similar to many years ago and the fund is trading at the bottom of its ascending channel? There are a number of examples, but let’s choose VDC. It is in “Correction” mode, according to its 52wk high and current price, but it is trading at a price that it was back in varying times of 2015 and latter parts of 2016? It is also trading at the bottom or slightly below its ascending channel.
VDE has thus far been a great buy since the turn of the year because it was in “Bear” mode and was trading at the bottom of its ascending channel.
Thanks,
Andrew
Hi Andrew
You comment inspires me.
You are already doing exactly what I had hoped this website would help initiate.
You are thinking about your investments and performing your own due diligence.
I appreciate that more than you know.
As far as an ETF being in “Bear” market mode or in “Correction” mode should not matter much in your decision.
These are just arbitrary “lines in the sand” and really only used for visual effect.
I recommend buying more shares of an ETF that you already own if you can bring down the cost basis.
If you don’t already own an ETF that you want to own, I recommend buying sooner than later, because nearly every sector is currently discounted.
For example, this week we bought more EES even though it was in “Correction” mode and many others were in “Bear” mode.
The reason I did this is because it was the one ETF that I already own that I could also buy cheaper than the last time I bought it and I had some cash available in that account.
I like looking at stock charts, but I don’t use them to make investment decisions.
The way I buy almost always leads me to be buying when an ETF is falling in value (the left side of the “V”); I’m usually done buying that ETF when it starts going back up in value (the right side of the “V”).
That’s not because I’m paying attention to the chart, it’s because part of my investment plan is to reduce the cost basis of my holdings.
I think both VDC and VDE are excellent choices.
I wish you much investing success.
Micah
P.S.: I was “forced” to make several purchases of ETFs when they were only in “Dip” mode during parts of 2017. I buy once a week, rain or shine. But, sometimes the market is so strong that almost nothing is on sale. Create an investment plan that you can stick to and allows you to sleep well at night. Thanks again for your comment. Micah
Thanks for the reply and feedback. The past few months have provided many opportunities to reduce my cost basis on a few ETFs; that’s the silver lining in a strong pullback. Recommending buying sooner than later is sage advice; it would be nice if we could always time the market perfectly, but (1) we are human and (2) we can always reduce the cost basis should we not time perfectly. I hope the best for you too.
Micah,
I have really enjoyed following your posts and daily updates for the past couple months. It has inspired me to make my own spreadsheets to monitor different ETFs.
What are your thoughts on funds that haven’t reached “Bear” mode, but the current price is similar to many years ago and the fund is trading at the bottom of its ascending channel? There are a number of examples, but let’s choose VDC. It is in “Correction” mode, according to its 52wk high and current price, but it is trading at a price that it was back in varying times of 2015 and latter parts of 2016? It is also trading at the bottom or slightly below its ascending channel.
VDE has thus far been a great buy since the turn of the year because it was in “Bear” mode and was trading at the bottom of its ascending channel.
Thanks,
Andrew
Hi Andrew
You comment inspires me.
You are already doing exactly what I had hoped this website would help initiate.
You are thinking about your investments and performing your own due diligence.
I appreciate that more than you know.
As far as an ETF being in “Bear” market mode or in “Correction” mode should not matter much in your decision.
These are just arbitrary “lines in the sand” and really only used for visual effect.
I recommend buying more shares of an ETF that you already own if you can bring down the cost basis.
If you don’t already own an ETF that you want to own, I recommend buying sooner than later, because nearly every sector is currently discounted.
For example, this week we bought more EES even though it was in “Correction” mode and many others were in “Bear” mode.
The reason I did this is because it was the one ETF that I already own that I could also buy cheaper than the last time I bought it and I had some cash available in that account.
I like looking at stock charts, but I don’t use them to make investment decisions.
The way I buy almost always leads me to be buying when an ETF is falling in value (the left side of the “V”); I’m usually done buying that ETF when it starts going back up in value (the right side of the “V”).
That’s not because I’m paying attention to the chart, it’s because part of my investment plan is to reduce the cost basis of my holdings.
I think both VDC and VDE are excellent choices.
I wish you much investing success.
Micah
P.S.: I was “forced” to make several purchases of ETFs when they were only in “Dip” mode during parts of 2017. I buy once a week, rain or shine. But, sometimes the market is so strong that almost nothing is on sale. Create an investment plan that you can stick to and allows you to sleep well at night. Thanks again for your comment. Micah
Thanks for the reply and feedback. The past few months have provided many opportunities to reduce my cost basis on a few ETFs; that’s the silver lining in a strong pullback. Recommending buying sooner than later is sage advice; it would be nice if we could always time the market perfectly, but (1) we are human and (2) we can always reduce the cost basis should we not time perfectly. I hope the best for you too.