How To Face Up To Buying The Dips
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    HOUSE MEDIAN ASKING PRICES AND WEEKLY CHANGE     Sydney $1,587,785 (-9.64%)       Melbourne $968,477 (-1.28%)       Brisbane $894,769 (-1.51%)       Adelaide $810,780 (-6.94%)       Perth $764,276 (-4.92%)       Hobart $750,134 (+1.16%)       Darwin $645,801 (-3.38%)       Canberra $1,017,220 (+3.56%)       National $1,010,264 (-5.75%)                UNIT MEDIAN ASKING PRICES AND WEEKLY CHANGE     Sydney $725,381 (-1.27%)       Melbourne $488,555 (-0.24%)       Brisbane $499,581 (-5.39%)       Adelaide $411,364 (-4.41%)       Perth $414,273 (-2.57%)       Hobart $498,192 (-6.11%)       Darwin $351,130 (-4.84%)       Canberra $480,942 (-4.46%)       National $506,040 (-3.24%)                HOUSES FOR SALE AND WEEKLY CHANGE     Sydney 10,047 (+6,578)       Melbourne 14,543 (+5,785)       Brisbane 8,228 (+1,243)       Adelaide 2,741 (+600)       Perth 6,788 (+1,322)       Hobart 1,219 (+48)       Darwin 269 (+17)       Canberra 1,013 (+155)       National 44,848 (+15,748)                UNITS FOR SALE AND WEEKLY CHANGE     Sydney 8,226 (+4,905)       Melbourne 7,846 (+2,295)       Brisbane 1,759 (+304)       Adelaide 499 (+101)       Perth 1,899 (+331)       Hobart 186 (-9)       Darwin 388 (+26)       Canberra 854 (+60)       National 21,657 (+8,013)                HOUSE MEDIAN ASKING RENTS AND WEEKLY CHANGE     Sydney $780 ($0)       Melbourne $590 ($0)       Brisbane $620 ($0)       Adelaide $600 ($0)       Perth $650 ($0)       Hobart $550 (-$10)       Darwin $680 ($0)       Canberra $690 ($0)       National $652 (-$1)                UNIT MEDIAN ASKING RENTS AND WEEKLY CHANGE     Sydney $725 (-$5)       Melbourne $580 ($0)       Brisbane $620 (-$10)       Adelaide $450 (-$20)       Perth $600 (+$15)       Hobart $470 (-$10)       Darwin $570 ($0)       Canberra $570 ($0)       National $584 (-$3)                HOUSES FOR RENT AND WEEKLY CHANGE     Sydney 5,614 (+7)       Melbourne 5,631 (-24)       Brisbane 4,055 (-125)       Adelaide 1,248 (+4)       Perth 1,830 (+7)       Hobart 380 (+12)       Darwin 153 (-19)       Canberra 664 (-12)       National 19,575 (-150)                UNITS FOR RENT AND WEEKLY CHANGE     Sydney 7,725 (-368)       Melbourne 5,038 (-276)       Brisbane 2,044 (-65)       Adelaide 394 (+11)       Perth 594 (-34)       Hobart 139 (+1)       Darwin 285 (-5)       Canberra 590 (-16)       National 16,809 (-752)                HOUSE ANNUAL GROSS YIELDS AND TREND       Sydney 2.55% (↑)      Melbourne 3.17% (↑)      Brisbane 3.60% (↑)      Adelaide 3.85% (↑)      Perth 4.42% (↑)        Hobart 3.81% (↓)     Darwin 5.48% (↑)        Canberra 3.53% (↓)     National 3.36% (↑)             UNIT ANNUAL GROSS YIELDS AND TREND       Sydney 5.20% (↑)      Melbourne 6.17% (↑)      Brisbane 6.45% (↑)      Adelaide 5.69% (↑)      Perth 7.53% (↑)      Hobart 4.91% (↑)      Darwin 8.44% (↑)      Canberra 6.16% (↑)      National 6.01% (↑)             HOUSE RENTAL VACANCY RATES AND TREND       Sydney 0.7% (↑)      Melbourne 0.8% (↑)      Brisbane 0.4% (↑)      Adelaide 0.4% (↑)      Perth 1.2% (↑)      Hobart 0.6% (↑)      Darwin 1.1% (↑)      Canberra 0.7% (↑)      National 0.7% (↑)             UNIT RENTAL VACANCY RATES AND TREND       Sydney 0.9% (↑)      Melbourne 1.4% (↑)      Brisbane 0.7% (↑)      Adelaide 0.3% (↑)      Perth 0.4% (↑)      Hobart 1.5% (↑)      Darwin 0.8% (↑)      Canberra 1.3% (↑)        National 0.9% (↓)            AVERAGE DAYS TO SELL HOUSES AND TREND         Sydney 36.6 (↓)       Melbourne 40.8 (↓)       Brisbane 36.8 (↓)       Adelaide 31.2 (↓)       Perth 41.1 (↓)       Hobart 41.6 (↓)       Darwin 49.2 (↓)       Canberra 39.9 (↓)       National 39.7 (↓)            AVERAGE DAYS TO SELL UNITS AND TREND         Sydney 36.2 (↓)       Melbourne 39.2 (↓)       Brisbane 33.8 (↓)       Adelaide 30.0 (↓)     Perth 43.3 (↑)      Hobart 43.8 (↑)        Darwin 33.7 (↓)       Canberra 45.3 (↓)       National 38.2 (↓)           
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How To Face Up To Buying The Dips

Buying stocks as they drop is harder than it sounds. Here’s one strategy that might help keep you on course in turbulent times.

By Jason Zweig
Tue, May 24, 2022 3:10pmGrey Clock 3 min

All investors are the prisoners of their past, and that shapes how they face the future.

Until the past few weeks, stocks had resembled a perpetual moneymaking machine, rising smoothly for nearly all of a decade and a half. From March 2009 through the peak this January, U.S. stocks gained more than 800%. The pandemic panic of February and March 2020 lasted only five weeks.

So it’s understandable if you think the nearly 20% collapse so far this year is just a blip. Stocks will soon resume their smooth upward course, right?

I hope so.

But, for all we know, the coming years might resemble 1966 to 1974 or 1929 to 1943, long slogs when stocks kept jolting up and down but finished essentially where they started.

In that case, you will need new weapons in your psychological arsenal. Years on end of poor stock returns would torment anyone who isn’t prepared for a long grind.

One weapon to consider is called value averaging. It’s like buying the dips—purchasing more stocks as prices drop—on steroids.

At its heart, this technique combines two basic ideas: dollar-cost averaging (putting money to work automatically every month or quarter) and rebalancing (selling some of your winners and buying some of your losers).

In value averaging, you set a target amount by which you want your account to grow each period. Say you want to end each month with $1,000 more than you started with.

In periods when stocks fall, you have to add enough to your holdings to hit the target you’ve set.

If, for instance, the value of your portfolio falls $250, you would need to buy $1,250 in stocks to finish the month with $1,000 more than you had at the beginning. If your portfolio’s value drops $500, then you’d add $1,500, and so on.

In a rising market, you’d buy less than $1,000—and even sell some, if stock prices go through the roof.

Value averaging is the brainchild of Michael Edleson, ex-chief economist at the Nasdaq stock exchange and former chief risk officer for the University of Chicago’s endowment.

Most investors say they intend to buy and hold—but many end up buying high and selling low instead.

Investors who use value averaging “have precommitted to bury their demons,” Mr. Edleson says—“the greed demon that makes you buy high and the fear demon that makes you sell low.”

This technique can’t eliminate the risk of underperformance, however. “If you cherry-pick certain periods, value averaging can look horrible,” says Mr. Edleson. “Your success is always going to depend on the starting point and ending point.”

The strategy does better when volatility is high and worse when stocks move smoothly up or down. In a long, steady market, Mr. Edleson says, “there’s nothing better than buy-and-hold, just sitting on it.”

So value averaging is a kind of bet that markets won’t soon return to the abnormally smooth upward slope of, say, the mid-2010s. If you think they will, it might not be for you.

Harald Deppeler, 53 years old, a semiretired physicist in Zurich, has been using the approach since 2013. He built his own spreadsheets to do so; most financial firms aren’t set up to automate value averaging for customers.

The approach “gives you a sense of having a slight edge, but also it tests you,” Mr. Deppeler says.

As stocks rose smoothly between 2013 and 2018, his holdings in an S&P 500 fund exceeded his targets, so Mr. Deppeler had to sell roughly 8% to 12% of that position, he says. (Capital gains are not taxable in Switzerland; as a rule, U.S. investors should consider value averaging only in tax-deferred retirement accounts.)

Mr. Deppeler says he’s aware that having to sell down his holdings during a long bull market probably cost him a small fortune in forgone gains, although he hasn’t calculated that opportunity cost. “I had a pile of cash, which I just couldn’t make any use of,” he says.

On the flip side, in March 2020, value averaging compelled Mr. Deppeler to put a “six-figure amount” into his S&P 500 stock fund during a horrifying decline. “It forced me to say, ‘The market is still falling, and now I have to buy into that,” he recalls.

“At the time, I had to keep telling myself, ‘This is what the plan is actually designed for, to make you buy more when the market dips. Stick to the plan, stick to the plan,’” says Mr. Deppeler.

“If someone really can take the appropriate amount, put it in stocks and then let it ride, rebalancing from time to time but otherwise holding, I’m not going to tell them value averaging is any better,” says Mr. Edleson. “But in practice not many people can do that.”

Then again, if you don’t have the discipline to buy and hold, you might not have the extra discipline to buy even more in a down market.

Few things are harder than buying more when markets fall. That’s why discipline is an investing superpower. Value averaging could help some people stay the course—but it takes work, and it won’t work all the time. Then again, in markets nothing works all the time.



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Even amid two international conflicts and an upcoming U.S. presidential election, some philanthropic leaders are optimistic about the direction of overall giving through 2024.

Penta spoke with heads of several non-profits and leading philanthropists to gauge whether charitable giving will continue its reported slump from 2023 or rebound alongside renewed interest in various political and economic issues.

“Contrary to what some might expect, philanthropy has had resilience in these times,” says Stacy Huston, executive director of Sixdegrees.org, a youth empowerment non-profit based in Virginia founded by actor Kevin Bacon in 2007.

Huston’s view echoes recent data from the biennial Bank of America Study of Philanthropy published last year, which found that while affluent giving is largely down, the value of the average philanthropic gift is up 19%, surpassing pre-pandemic levels.

The notion of what these gifts look like is changing, and is partially responsible for the growth. Philanthropy can be executed through more avenues than ever, whether through celebrity association, tech titans stewarding large endowments, or  athletes using their platforms to advocate for and create meaningful change.

“The industry and movement is creating new models, and you want to get it right,” says Scott Curran, CEO of Chicago-based Beyond Advisers. “No one should take their foot off the gas pedal.”

Curran spent a number of years with the Clinton Foundation in its infancy before leaving in 2016 to open his own consultancy, which focuses on philanthropy strategy at the highest levels. Curran and his team work with celebrities, athletes, multi-generational family foundations, and other affluent givers who need guidance in directing their philanthropic efforts. It’s a growing area of interest: Over half of affluent households with a net worth between US$5 million and US$20 million have, or are planning to establish, “some kind of giving vehicle” within the next three years, according to the Bank of America report.

Corporate philanthropy, rather than individual giving, is the cornerstone of Marcus Selig’s work as chief conservation officer at the National Forest Foundation, a Congressionally chartered non-profit based in Montana responsible for protecting millions of acres of public lands.

“Our outlook is business as usual,” he says, advising that giving may slow down, but not enough for the foundation to change course.

Factors such as political polarisation in the U.S. and the wars in Eastern Europe and the Middle East are pushing nonprofits to consider their niche, and how they might work with other groups, both on the corporate and philanthropic levels, Selig says.

“It leads to a little more sharing on the ground in what needs to be done,” he adds.

Steve Kaufer , founder of Massachusetts-headquartered e-commerce giving platform Give Freely and founder of TripAdvisor, says that the economy has a much bigger role in election years, as he looks to build and grow something that can act as a “counterbalance.”

“There’s a trend towards democratisation, and acting collectively can lead to greater impact,” he says.

Kaufer’s new platform hopes to leverage the everyday philanthropist through online shopping dollars to benefit major charity partners like UNICEF and charity:water, who earn funds as shoppers choose an organisation to benefit through an online clickthrough process.

“Whether a good year or bad year, e-commerce will continue to keep growing,” he says. “Nobody doubts that.”

Whether a legacy foundation, corporation or individual, the political landscape this year is requiring some to exercise caution as they consider what their own charitable actions might be and how it could be viewed more broadly. For the personal philanthropist, every move is now scrutinised more closely. On the nonprofit side, entities are exercising more due diligence to understand if a specific donor aligns with their mission and that there aren’t any underlying issues that could cause greater pushback.

“You have to be able to walk the walk,” Huston says. “For example, we’ve had to turn down very large donor checks from corporations because there’s a Reddit stream calling them out on their human rights practices.”

She adds that even a routine charity activation could now be aligned with a political party, and that adds complexities to how a higher-profile organisation like Six Degrees can activate, especially as the film Footloose turns 40 in 2024 (which Bacon starred in).

“A lot of organisations and states want to align themselves with this feel good moment, and we should be able to stand side by side with everyone, but we have to be aware,” she says.

Another topic attracting donor interest today is  mental health, an area that historically has been underfunded and under-resourced by philanthropy, according to Two Bridge partner Harris Schwartzberg, who has been closely linked to the mental health space for more than a decade.

Today, the issue for mental health nonprofits is less about resources and more about societal divisiveness and polarisation around the topic. There’s an “overwhelming demand” for solutions, but the space is in a “perfect storm” for the broader political issues to make things worse, Schwartzberg says.

In Curran’s opinion, the storms brewing are troublesome, but they are also creating new opportunities for corporate and personal giving. The  current state of philanthropy is one of “dynamic, expansive, and blurred lines,” meaning a careful blending of targeted giving combined with an understanding of the broader geopolitical landscape could lead to a successful overall philanthropic strategy.

“There are a lot of headlines that distract, but shouldn’t,” he says. “2024 needs more serious philanthropists than ever.”

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