I’ve got some good news and some bad news.
The good news is that the current bear market is still in effect and stock prices are dropping. In my masochistic view of the stock market, the longer the market stays down, the more the opportunities for me to buy stocks at significant discounts.
The bad news is that I screwed up when I rebalanced my 403(b) plan portfolio. Rebalancing required a two-step process for both prior and future contributions. My mistake was that I instructed the plan holder (Prudential) only where to invest my future contributions. My prior contributions continued to remain in cash as described in my previous 403(b) plan post.
BUT, the bad news actually turned out to be good news.
I figured that recent stock market gains were only a bear-market bounce and would eventually turn around. So, I waited until now to fix the problem. Before market close today, I moved my original cash portion into the three stock mutual funds as I had planned in my previous post.
The good news is that those three funds are now trading at about a 4-6% discount from when I originally decided to move back into the stock market. I moved from cash into PCVAX at $19.64/share, RERCX at $26.69/share, and RGACX at $19.38/share.
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