Wednesday, October 08, 2008

Definition of Bad

I was paying some bills tonight and so happened to take a look at a few of the financial charts Money makes available. Mostly out of a masochistic desire to see how bad our mutual funds are doing. And what I found was almost more depressing then I was expecting, and I was expecting depressing.

Price history for investments over past 12 months:

That is unequivocally and across-the-board bad. So much for diversification I guess. Even the lines at the bottom of the chart that appear to be better are just flattened by the scale of the chart. When the best thing you can say about your investments is to remind yourself that dollar-cost averaging is softening the blow of a ~30% decline, you know things are not going well.

Good thing I'm not looking to retire anytime soon.


Scooter said...

I still don't understand why sometimes IE won't let me see your comment link.

My friend was remarking just the other day that he's officially below the amount of money he personally added to his retirement plan. I saw the same thing with my corporate stock - it's officially below the 15% discount I get. But gas is cheaper, so the graphs for your personal day-to-day costs might be trending upward.

Shawn said...

I made the mistake of looking at my trends and status today... I think I was better off not knowing.