Britain vote could crush 401k balances?

[Running_Man]

It is very interesting to listen to CNBC and their continued call that this election is close. [MOD EDIT] Some day BTFD as a means of the amount of thought one needs for how to become rich may not work and the central banks will be discredited, but I am sure there will be plenty early on with this strategy. The biggest purchaser of Japanese stocks in the last 6 months has been the Japan Central bank, now with Japan futures down 7 percent after a 3 percent drop today, that position will be in a losing way. The Japan Central Bank also holds 40% of all government debt in Japan, interesting times to be sure.

 

[HFWR]

I'm unlikely to go all cash.

 

[tulak]

USD is up 8% against the British Pound and 3% against the Euro.

This could be a good summer for US tourists visiting Europe.

The downside is the portfolio will take a bigger hit...

 

[HFWR]

S&P futures down 92...

 

[Senator]

S&P futures down 92...

Get ready to buy the gap.

Futures imply Dow open down 650 points as Brexit result frightens investors

 

[YVRRocketSurgery]

Welp, the big Asian markets are all in red. Nikkei is down near 7%.
Can't wait to wake up and see everything in red and what the portfolio ends up at by end of day tomorrow.
We'll see if the missus wants to throw some cash at it.

 

[audreyh1]

Oooooooh - might be one of those mini crash mornings where ETFs can't open properly and people can't get online with their brokerage. Hope no one has stop losses set up!

 

[VFK57]

Every time I buy or sell based on Market sentiment, I lose. I rather do nothing and watch. Hopefully the US$ will remain the prime world reserve currency for at least near future and US economy continue to stay #1 in the world.

 

[Totoro]

I have had decent results with the inverse, on an individual stock level.

With each implosion, sift through to find the unfairly punished company that is just being dragged down because it is in a rotten basket.

It has to be a solid company though because there is no telling when sentiment reverses, and you don't want to get stuck with a company having poor future prospects.

Did it in 2012 with BNP Paribas (EU banking meltdown), more recently with MHPC in the Ukraine (Krim wars).

 

[jollystomper]

I put things into a long term perspective. Lets say the market ends up down 5%. Since I'm not about 45% in stocks, my portfolio will take a little less than a 2.5% hit. That equates to about a year of retirement withdrawals for me. But I don't have to touch the stock (or bond) portion of my investments for at least 7 years. In the long run, this short term panic has good odds of recovering. Perhaps I'll put a little more cash into my ETFs as early in the day as possible, it might be a buying opportunity for me.

 

[Lakedog]

Oooooooh - might be one of those mini crash mornings where ETFs can't open properly and people can't get online with their brokerage. Hope no one has stop losses set up!

Might also be a good morning to put in some low-ball buy orders if looking to start or add to positions.

 

[athena53]

These articles are clickbait and it's sad to think how many people never make the returns posted by most mutual funds because they pile in when the values are up and sell in a panic in times like these.

In my pre-retirement days these dips were even easier to take because I was putting away so much new money and buying at bargain prices. When the dust settles I'll probably move some of my free cash into SPY.

 

[gerntz]

A couple of other interesting points (to me, anyway):

• Glad to see Boston (District) was allowed to vote - over 75% voted to leave

Have ancestors from Gedney (Drove End).

 

[Floridatennisplayer]

Dow already down 500 points. I should have taken my own advise and converted to cash yesterday and got back in later today. My 401k is now melting.

 

[ponyboy]

Goodbye 401k gains...nice knowing you. Time to shove more money in my index funds.

 

[gauss]

Initial market results show DJIA hovering around -500 pts. (~-2.7%)

If this is as low as we go, then we may have dodged a bullet by not making any changes.

 

[bclover]

LOL, I'm not doing a blessed thing. I've got a year's expenses in cash so absolutely no need to change course.

I may buy some british pounds. I'm planning on going to London next year and if the the value drops it maybe a nice little bonus

 

[Big_Hitter]

meh

 

[Totoro]

Dow already down 500 points. I should have taken my own advise and converted to cash yesterday and got back in later today. My 401k is now melting.

The only thing we knew yesterday was things were going to be volatile for a while.

When a storm is coming, hunker down. Best way not to get washed overboard when it hits

[Edit] I'm actually flat today in my index tracker. The euro dropped just about the same as the S&P. Individual shares down 1.5% (due to ArcelorMittal taking a >10% nose dive).

 

[Pilot2013]

Wow. Are there really people smart enough to be on this board, thinking about their future panicking over this?

 

[GravitySucks]

Every time I buy or sell based on Market sentiment, I lose. I rather do nothing and watch. Hopefully the US$ will remain the prime world reserve currency for at least near future and US economy continue to stay #1 in the world.

+1

 

[ziggy29]

Every time I buy or sell based on Market sentiment, I lose. I rather do nothing and watch. Hopefully the US$ will remain the prime world reserve currency for at least near future and US economy continue to stay #1 in the world.

I didn't just buy because of market sentiment or my own fear/greed per se. I just bought more international equities because my AA was out of whack as this hammering of international stocks left my AA too low on that asset class.

 

[jazz4cash]

Wow. Are there really people smart enough to be on this board, thinking about their future panicking over this?

Gee, I didn't think you had to be smart to be on this board but I'm not seeing much panic here. More like opportunism (is that a word?). It seems like it's the pros that are creating the volatility. It's not like any immediate action will come out of this. It'll take years but the uncertainty generates knee jerk response.


Sent from my iPhone using Early Retirement Forum

 

[ponyboy]

I already put in orders this morning. There are those who do nothing or run...and there are those who run into the fire!

 

[Pilot2013]

Gee, I didn't think you had to be smart to be on this board....

I stand corrected!