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Re: Anyone else having panic attacks about the market?
Old 03-14-2007, 01:05 AM   #41
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Re: Anyone else having panic attacks about the market?

Quote:
Originally Posted by Laurence
Big tax return = putting $4,000 into the market in the next few weeks. The only problem is the IRA needs to be funded by April 15 and the bleeding might not be done by then! I know, $4k is nothing for some of you big fish, but it's almost 4% of my portfolio!
Just because it has to go into the IRA by April 15 does not mean it has to go into the market by then. (Not that I would wait, and I'm a small fish, too.)
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Re: Anyone else having panic attacks about the market?
Old 03-14-2007, 01:15 AM   #42
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Re: Anyone else having panic attacks about the market?

All these stuff is indeed interesting.

In my early age of investing, I've never experience a 20% down market in a year, although I have had bad experience where the penny stock I bought just worth basically next to nothing. Ever since that I've been disciplining into DCA and occassional lump sum. I too wonder if I have what it takes to keep on going when it keeps on going down. Only time can tell.
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Re: Anyone else having panic attacks about the market?
Old 03-14-2007, 02:13 AM   #43
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Re: Anyone else having panic attacks about the market?

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Originally Posted by REWahoo!
Yes you are...if you don't take a long-term view of equity markets. Unless you are willing to ride the roller coaster both up and down, you shouldn't be on it.

i am taking a long term view with my actions, but can't help but panic mentally. i am much younger than most of you and though i am in this for the long haul, i haven't dealt with this before as much of my money was tied up in real estate before. had to get out of that for various personal and practical reasons, so i am trying my best to deal with this downturn, but my mind keeps on wandering to all sorts of doomsday scenarios. i think that once you make a substantial amount of money then there is the fear of losing that money. i think i need to toughen up psychologically more than anything.
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Re: Anyone else having panic attacks about the market?
Old 03-14-2007, 06:14 AM   #44
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Re: Anyone else having panic attacks about the market?

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Originally Posted by wab
Because we can never tell when the sale is over? Or is because we own the stuff that is on sale?
Is this the slippery slope of "Market Timing"?

The price of the investment instrument is important when you buy and when you sell.
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Re: Anyone else having panic attacks about the market?
Old 03-14-2007, 06:32 AM   #45
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Re: Anyone else having panic attacks about the market?

One thing I thought about that could make this "panic attacks about the market" is speed. More than ever selling stocks is only a mouse click away.

With the memories of 2000 still in people's mind selling could pick up.

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Re: Anyone else having panic attacks about the market?
Old 03-14-2007, 07:32 AM   #46
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Re: Anyone else having panic attacks about the market?

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Originally Posted by newyorklady
global meltdown. i am screwed.
There, now. That's the spirit we're looking for. :

Do you just not agree with the consensus emerging from replies to your post?
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Re: Anyone else having panic attacks about the market?
Old 03-14-2007, 07:40 AM   #47
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Re: Anyone else having panic attacks about the market?

Gosh I'm not in a panic, in fact last night when dh mentioned it (with a worried look on his face) I said great, time to keep buying
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Re: Anyone else having panic attacks about the market?
Old 03-14-2007, 07:50 AM   #48
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Re: Anyone else having panic attacks about the market?

NYL, I do understand where you are comming from.
What is realistically the worse doomsday scenario? Perhaps it is a repeat of the great depresion? Even that shouldn't cause you any fear as you have plenty of time on your side.

The speed which the market is moving can be scary. However, buying low is as important as selling high (as someone mentioned earlier). So if you can buy now, that is the best thing to do.

The last thing you want to do is buy high and sell low. Selling now would be selling low.

The only reason I would panick is if you had your entire portfolio in one stock. And even then, this would be a good time to diversify 8)
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Re: Anyone else having panic attacks about the market?
Old 03-14-2007, 08:27 AM   #49
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Re: Anyone else having panic attacks about the market?

Quote:
Originally Posted by wab
Pretty tight range. Care to share the math?
I would, but then your head would explode.
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Re: Anyone else having panic attacks about the market?
Old 03-14-2007, 09:08 AM   #50
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Re: Anyone else having panic attacks about the market?

The dip is a good thing for me. I'm 15 months in to FIRE. For assorted reasons I waited to roll out the large lump sum from MegaCorp till January. Total assets were at around 75/25 in early January and with advise from here and Vanguard I moved to about 50/50 the end of January. I still have some 401K money to move and have been dragging my feet trying to decide if I really wanted to stay so conservative in the booming market. I was regularly reminding myself that I was in preservation of life savings not accumulating mode anymore. Now I'm feeling like a smart market timer and shouldn't have as much trouble keeping with the plan going forward.

Part of the bond/cash side of the mix is 2 years of living expenses in Money Market funds and CDs, with another 3 years worth in a fund that is as good as cash making 6-7%.

I just have to remind myself to rebalance when necessary since that will be the only way to cash in on the roller coaster.

I sleep fine at night, but I do watch the ride.

Jeb
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Re: Anyone else having panic attacks about the market?
Old 03-14-2007, 09:12 AM   #51
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Re: Anyone else having panic attacks about the market?

Quote:
Originally Posted by newyorklady
i am taking a long term view with my actions, but can't help but panic mentally. i am much younger than most of you and though i am in this for the long haul, i haven't dealt with this before as much of my money was tied up in real estate before. had to get out of that for various personal and practical reasons, so i am trying my best to deal with this downturn, but my mind keeps on wandering to all sorts of doomsday scenarios. i think that once you make a substantial amount of money then there is the fear of losing that money. i think i need to toughen up psychologically more than anything.
Its simple: don't look.

Seriously, your time horizon is measured in decades, so why do you even bother looking at your investments on a day to day basis? Who cares about the price of tea in China?

Look once a month. You'll be happier and your portfolio wll do fine over time.
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Re: Anyone else having panic attacks about the market?
Old 03-14-2007, 09:13 AM   #52
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Re: Anyone else having panic attacks about the market?

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Originally Posted by newyorklady
i am much younger than most of you and though i am in this for the long haul, i haven't dealt with this before as much of my money was tied up in real estate before.
It's tough when we realize that extraordinary gains that we've benefitted from in the last bull market in <insert real estate / equities / or your bubble of choice here> aren't due to our own genius or hard work, but mostly due to luck at being invested when the bubble started.

I'm also fairly young even for a RE board, but having been through the last market meltdown I have learned to take it all in stride. Easy come, easy go. But I have faith that with a diversified portfolio and realistic expectations, I'll weather the storm.

Just don't make any sudden knee-jerk changes in response to the market; stick with your plan.
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Re: Anyone else having panic attacks about the market?
Old 03-14-2007, 09:14 AM   #53
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Re: Anyone else having panic attacks about the market?

I'm hoping the market drops some more. I want a nice deep drop so than I can pick up more shares at lower prices.
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Re: Anyone else having panic attacks about the market?
Old 03-14-2007, 10:00 AM   #54
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Re: Anyone else having panic attacks about the market?

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Originally Posted by Cute Fuzzy Bunny
I would, but then your head would explode.
Come on DO IT!

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Re: Anyone else having panic attacks about the market?
Old 03-14-2007, 10:05 AM   #55
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Re: Anyone else having panic attacks about the market?

43, nearly 100% equities. I track my net worth on a monthly basis - the recent market drops pop me back what, maybe 3 or 4 months.

Big deal, doesn't faze me in the least.

If you have the mentality that your account balance should always be growing, well then you better move into CD's !

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Re: Anyone else having panic attacks about the market?
Old 03-14-2007, 10:15 AM   #56
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Re: Anyone else having panic attacks about the market?

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the combination of wonderful spring weather, a very boring stretch at w*rk, and watching the pot decrease, however expected and understood, is disheartening.
Right, it will seem much worse if you run out of pot.

Quote:
this is where the Financial Advisor you are paying good money should be earning his pay. Ask him to buy a cup of coffee, hold your hands and look into your eyes and repeat: it's ok. everything will be fine.
Unfortunately, the planner will probably hold your hands, look into your eyes and say "It's time to get you into some whole life insurance and put some annuities in your IRA."
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Re: Anyone else having panic attacks about the market?
Old 03-14-2007, 10:22 AM   #57
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Re: Anyone else having panic attacks about the market?

Quote:
Originally Posted by newyorklady
i am taking a long term view with my actions, but can't help but panic mentally
......
i think i need to toughen up psychologically more than anything.
Does this help? :

- despite the 22% drop in the market on 'Black Monday' in October 1987, if you just HELD the market for all of 1987, you would have a 2.3% GAIN.

So, not a great year for the buy & hold investor, but a 2.3% gain is certainly nothing to 'panic' about.

-ERD50
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Re: Anyone else having panic attacks about the market?
Old 03-14-2007, 10:50 AM   #58
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Re: Anyone else having panic attacks about the market?

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Originally Posted by bpp
Just because it has to go into the IRA by April 15 does not mean it has to go into the market by then. (Not that I would wait, and I'm a small fish, too.)
EXCELLENT point. However when all is said and done I'm too chicken to play that game. We burned all our market timing karma when DW excercised and sold all her options to buy the house and a day later her company announced litigation and the stock price plummeted. I'll just keep telling myself we are way ahead and plunk the money in as soon as I get it.
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Re: Anyone else having panic attacks about the market?
Old 03-14-2007, 11:09 AM   #59
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Re: Anyone else having panic attacks about the market?

Quote:
Originally Posted by TromboneAl
Right, it will seem much worse if you run out of pot.....
Freewheelin' Franklin: "We've got plenty of grass, and as we all know, dope will get you through times of no money better than money will get you through times of no dope".

Sage investment advice on commodities and the laid back approach.
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Re: Anyone else having panic attacks about the market?
Old 03-14-2007, 11:14 AM   #60
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Re: Anyone else having panic attacks about the market?

Still accumulating and love a sale!. Haven't we been through this the last few years?. Seems like a late winter early spring sell off of 5 - 10% from highs in January is a pattern. But I really dont pay that much attention maybe someone who trades frequently can comment.

Elroy
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