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Strategies & Market Trends : Stock and Bond Market-Timing: Can it be Done?
VTI 330.06+0.2%Nov 7 4:00 PM EST

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From: Honey_Bee8/4/2014 12:33:15 PM
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Bob Brinker hosted Moneytalk live yesterday. Excerpts from my program summary:

STOCKS:

Honey commentary: Brinker didn't mention the fact that last week the stock market dropped 317 points in one day -- the biggest drop in 6 months. The Dow has given back all year-to-date gains -- it is exactly where it closed on January 2nd. Of course, Brinker follows the S&P 500 Index which has done a little better.

Still Recommends Dollar-Cost-Average on Weakness... In hour-two, Brinker told Don from Chicago that he recommends dollar-cost-averaging on weakness for new money.

ETF1-Robert covered the call in depth that left an elephant-in-the-room question unanswered:

Hour 2, 12 minute mark, Chicago, Don
Caller has 18K cash and trying to decide how to invest it. Has been retired for 10 years

BB: “I would go balanced then, because from my point of view, those who are approaching or in retirement, this is just my point of view, I think it makes sense for them to take a balanced investment approach. A balanced investment approach would have about 50% in equities, about 50% in income securities.”

“As for the equity side, I would be taking a dollar cost average on weakness approach to the market”
Comment: The Vanguard 500 Index Fund VFINX had a one week performance of -2.66% (per Morningstar). Bob Brinker did not mention to the caller how much weakness had to take place in order to start dollar cost averaging into it.
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