Young Research & Publishing Inc.

Investment Research Since 1978

How Vanguard Wellesley Won the War

By

You want to keep this chart on your refrigerator because there’s been a lot of talk in the press lately about 2008. Looking back five years later is always easier than living through it. What the press fails to explain is the emotional and financial toll 2008 leveled on so many retirees. There’s a breaking point for every investor. For those (there’s more than you think) that had too much in the stock market that point was clearly met five years ago this month. Too many sold at or near the bottom and have never fully recovered. I have a feeling those that got out are now back at it again, investing in stocks hoping to make back what they lost. Investors who went into 2008 with a balanced portfolio were spared from the emotional and financial roller-coaster and lived to fight another day. Look no further than the Vanguard Wellesley fund for the cold hard truth about 2008. While the Dow dropped 34%, the S&P close to 40%, and others by more than 50%, Vanguard Wellesley was down less than 10%. That’s how you win the war.

By comparison, the Legg Mason Value Trust cratered through 2008.

VG Wellesley

Make sure you have a plan in place to deal with destructive market volatility. It doesn’t have to be your undoing. And if your investable assets are around $2 million and want to speak with me directly then email me at ejsmith@youngresearch.com to get help crafting a portfolio for your specific situation.

 

The following two tabs change content below.

E.J. Smith

Editor-in-Chief
E.J. Smith is Founder of YourSurvivalGuy.com, Managing Director at Richard C. Young & Co., Ltd., a Managing Editor of Richardcyoung.com, and Editor-in-Chief of Youngresearch.com. E.J. graduated from Babson College in Wellesley, Massachusetts, with a B.S. in finance and investments. In 1995, E.J. began his investment career at Fidelity Investments in Boston before joining Richard C. Young & Co., Ltd. in 1998. E.J. has trained at Sig Sauer Academy in Epping, NH. His first drum set was a 5-piece Slingerland with Zilldjians. He grew-up worshiping Neil Peart of the band Rush, and loves the song Tom Sawyer—the name of his family’s boat, a Grady-White Canyon 306. He grew up in Mattapoisett, MA, an idyllic small town on the water near Cape Cod. He spends time in Newport, RI and Bartlett, NH—both as far away from Wall Street as one could mentally get. The Newport office is on a quiet, tree lined street not far from the harbor and the log cabin in Bartlett, NH, the “Live Free or Die” state, sits on the edge of the White Mountain National Forest. He enjoys spending time in Key West and Paris. Please get in touch with E.J. at ejsmith@youngresearch.com.