Last month I documented switching out of my largest single holding, the Canadian Endeavour Fund, to the Canadian Bond Fund where the plan is to park the money for a while just to see if I can avoid the downward trend of the summer months. I was PO'ed with finance guy for not completing the transaction when requested...and even more PO'ed when he put it through two days later while I was waiting for "the right time" to arrive again.
The two day delay cost me several thousand dollars as, in that two days, the Endeavour Fund units went down and the Bond Fund units went up. The question, where do I stand today? On May 2, when I requested the switch, the Endeavour Fund was at $11.194 and the Bond Fund $6.079. On May 4, when Dopey woke up and got the job done they were $11.012 and $6.102 respectively. That two days cost! On the plus side, the unit prices continued to move as expected. As of yesterday were $10.528 and $6.151.
Yup, I avoided a huge drop in the Endeavour Fund unit price with the decision to bail. Furthermore, I've gained as the Bond Fund units continued to climb and I received the May distribution on my newly acquired units. The monthly distribution for May annualized to a tick over 3% which was very nice for something that I'd held for only 11 days prior to the May 15 distribution date.
No, I don't have a crystal ball. The decision to Sell In May was based pretty much on gut instinct and the fact that I was growing tired of the seemingly never ending cycle of volatility. It just seemed like a good time to take a breather, go to the lake and relax without worrying about the @#$%&*! markets!
The two day delay cost me several thousand dollars as, in that two days, the Endeavour Fund units went down and the Bond Fund units went up. The question, where do I stand today? On May 2, when I requested the switch, the Endeavour Fund was at $11.194 and the Bond Fund $6.079. On May 4, when Dopey woke up and got the job done they were $11.012 and $6.102 respectively. That two days cost! On the plus side, the unit prices continued to move as expected. As of yesterday were $10.528 and $6.151.
Yup, I avoided a huge drop in the Endeavour Fund unit price with the decision to bail. Furthermore, I've gained as the Bond Fund units continued to climb and I received the May distribution on my newly acquired units. The monthly distribution for May annualized to a tick over 3% which was very nice for something that I'd held for only 11 days prior to the May 15 distribution date.
No, I don't have a crystal ball. The decision to Sell In May was based pretty much on gut instinct and the fact that I was growing tired of the seemingly never ending cycle of volatility. It just seemed like a good time to take a breather, go to the lake and relax without worrying about the @#$%&*! markets!
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