share volume vs fund balance

[JD64]

Consider this hypothetical chain of events

1. I move 100% C fund to 100 G when the S&P500 is at 4000

2. I move 100% G fund back to C fund when the S&P500 is at 3800

3. I wait until the C fund recovers back to 4000

Questions

1. Should I always have a higher volume of C fund shares after these events?

2. Should I always have a higher C fund $ balance after these events?

 

[Skorcher]

1. Yes. You sold high and bought low. You have more C shares when you bought at 3800.
2. Not necessarily. The S&P 500 /C fund could tank and you'd have a lower $ balance.

 

[AmosSantos]

1. Yes. You sold high and bought low. You have more C shares when you bought at 3800. 2. Not necessarily. The S&P 500 /C fund could tank and you'd have a lower $ balance.

here are my thoughts on the two statements: The first statement is accurate. If you bought more C shares at a lower price of 3800, your share volume would increase. Assuming the price of the shares remained the same, you would have a higher fund balance than before, because you own more shares. The second statement is also accurate. While buying shares at a lower price may increase your share volume and fund balance, the value of your investment can still decrease if the overall performance of the fund or market goes down. It's important to consider both share volume and the performance of the investment when evaluating its overall value.