Stock buys for 28/02/2020
In case you haven’t been following along, every two weeks I am contributing $1,000 into the 70/30 portfolio. About 28 weeks ago, I contributed the first $1000 into the 70/30 Portfolio with Questrade. Here is a recap from August 26th 2019:
Now it’s time to contribute another $1,000 into the portfolio. I’m going to be buying just the right amount of individual index funds to keep my target allocations (+/- 1%) within my chosen range. To start, in my Allocation Tool, I adjusted the unit price so that it is current. I then bought approximately $1,000 worth of index funds in a way that kept my allocations relatively close to my original target goals. Feel free to use my allocation tool: allocationtool13032020
The 70/30 portfolio is down overall $1,243.54 since August 2019 (total contributions to the portfolio has been $15,000). Notice how this time we did not contribute very much to the bonds category. In a correction bonds typically go up (or have very low volatility) while equities go down. So we have to rebalance by buying more shares in the equity categories. So to rebalance, this week we bought mostly equites to bring the target allocations back in line, this forces us to buy low. By sticking to the 70/30 portfolio we take emotion out of investing. The best possible thing for your portfolio during the accumulation phase is to have a correction or bear market so you can buy shares on sale. Investing is a long term play. We know from study after study that boring index investing over the long term will out perform 95% of the mutual funds out there. We also know that we will achieve at least a 9% return average over the long term. Stay the course and you will do very well. The proof? The best investors are either dead or have forgot about their investments and thus did not panic sell. I’m excited to see what the next few weeks brings us. Next $1,000 contribution will be around March 27th 2020.