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01-26-2013, 08:01 PM
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#122
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Thinks s/he gets paid by the post
Join Date: May 2011
Location: South Eastern USA
Posts: 1,068
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Quote:
Originally Posted by REWahoo
Are you suggesting my asteroid needs fixing?
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The have some good surgeries available, methinks.
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01-26-2013, 08:03 PM
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#123
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Mar 2003
Posts: 18,085
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Quote:
Originally Posted by bondi688
I also took advantage of the big corrections and bought at those times, but that was when I was working. For most people in ER, they do not have free cash waiting on the sideline to put in, and the bear roam is not longer a buying opportunity but a stress test of your reserve. ( Hence that thread of how much cash to hold is useful, so you can ride out the bear market instead of selling in that environment to a Gen Xer, who then boasts how he benefited by buying at a discount.)
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Ummm, that is why you want to hold other asset classes besides equities, hopefully relatively uncorrelated.
__________________
"All animals are equal, but some animals are more equal than others."
- George Orwell
Ezekiel 23:20
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01-26-2013, 08:06 PM
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#124
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Recycles dryer sheets
Join Date: Aug 2012
Posts: 61
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Here, here!
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01-26-2013, 08:08 PM
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#125
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Full time employment: Posting here.
Join Date: Dec 2010
Posts: 576
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Quote:
Originally Posted by brewer12345
Ummm, that is why you want to hold other asset classes besides equities, hopefully relatively uncorrelated.
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My comment was not about asset allocation, but to address the point, previously, for some people in the accumulative phase, a bear market may be a buying opportunity, but that is not true for many who are in ER.
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01-26-2013, 08:15 PM
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#126
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Mar 2003
Posts: 18,085
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Quote:
Originally Posted by bondi688
My comment was not about asset allocation, but to address the point, previously, for some people in the accumulative phase, a bear market may be a buying opportunity, but that is not true for many who are in ER.
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The hell it isn't true! Stocks plunge, other stuff in your portfolio stays flattish or actually goes up: buying opportunity! Sell the stuff that did better (on the margin at least) and buy more of what plunged. Voila, buying opportunity for the retired.
Of course, if you don't want to hold a well diversified portfolio you can always check out some of the squirrel recipes I have posted in the ER Forum Cookbook thread...
__________________
"All animals are equal, but some animals are more equal than others."
- George Orwell
Ezekiel 23:20
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01-26-2013, 08:18 PM
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#127
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jan 2006
Location: Rio Grande Valley
Posts: 38,002
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Quote:
Originally Posted by bondi688
I also took advantage of the big corrections and bought at those times, but that was when I was working. For most people in ER, they do not have free cash waiting on the sideline to put in, and the bear roam is not longer a buying opportunity but a stress test of your reserve. ( Hence that thread of how much cash to hold is useful, so you can ride out the bear market instead of selling in that environment to a Gen Xer, who then boasts how he benefited by buying at a discount.)
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I was ER'd in 1999, which meant I got through the dot-com bust, (there was also a 2002 credit crisis which caused the worst of the 2002 bear), 9/11, the 2008 market meltdown and financial crisis, and the recent European panics. Cash is part of my asset allocation, and during those times that some of it was deployed to buy depressed assets. There is no reason that ER folks can't take advantage of buying opportunities.
__________________
Retired since summer 1999.
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01-26-2013, 08:19 PM
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#128
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jun 2002
Location: Texas: No Country for Old Men
Posts: 50,003
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Quote:
Originally Posted by bondi688
I also took advantage of the big corrections and bought at those times, but that was when I was working. For most people in ER, they do not have free cash waiting on the sideline to put in, and the bear roam is not longer a buying opportunity but a stress test of your reserve. ( Hence that thread of how much cash to hold is useful, so you can ride out the bear market instead of selling in that environment to a Gen Xer, who then boasts how he benefited by buying at a discount.)
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I understand completely. I retired in 2005 and 'enjoyed' the stress test of 2008 from the no-longer-have-a-job side. It wasn't pleasant but those of us who had a couple of years of cash, who didn't panic and who didn't sell came through OK.
I'm expecting to hear 'next time will be different', and for all I know it could be. But I'm not willing to bet against history and I plan on maintaining my AA for the foreseeable future. I'm not smart enough to know whether I should zig or zag so I'll hold what I've got - and keep an eye out for asteroids.
__________________
Numbers is hard
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01-26-2013, 08:22 PM
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#129
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Recycles dryer sheets
Join Date: Aug 2012
Posts: 61
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You ever wonder why fund managers can't beat the S&P 500? Because they're sheep, and sheep get slaughtered.
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01-26-2013, 08:24 PM
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#130
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jun 2002
Location: Texas: No Country for Old Men
Posts: 50,003
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Quote:
Originally Posted by rembrandt
You ever wonder why fund managers can't beat the S&P 500? Because they're sheep, and sheep get slaughtered.
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And that applies to this discussion...how?
__________________
Numbers is hard
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01-26-2013, 08:26 PM
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#131
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Full time employment: Posting here.
Join Date: Dec 2010
Posts: 576
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Quote:
Originally Posted by brewer12345
The hell it isn't true! Stocks plunge, other stuff in your portfolio stays flattish or actually goes up: buying opportunity! Sell the stuff that did better (on the margin at least) and buy more of what plunged. Voila, buying opportunity for the retired.
Of course, if you don't want to hold a well diversified portfolio you can always check out some of the squirrel recipes I have posted in the ER Forum Cookbook thread...
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I guess "catching a falling knife" must never be true. I admire your sense of omnipotence in stock picking.
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01-26-2013, 08:30 PM
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#132
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jan 2006
Location: Rio Grande Valley
Posts: 38,002
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Quote:
Originally Posted by REWahoo
And that applies to this discussion...how?
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Do you think it's one of those programs that randomly generate pithy sayings? Sayings that appear to be clever or profound on the surface but upon closer examination are found to be nonsensical? This one seems to have a definite financial spin.
__________________
Retired since summer 1999.
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01-26-2013, 08:31 PM
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#133
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Recycles dryer sheets
Join Date: Aug 2012
Posts: 61
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The point is, ladies and gentlemen, that greed, for lack of a better word, is good. Greed is right. Greed works. Greed clarifies, cuts through, and captures the essence of the evolutionary spirit. Greed, in all of it's forms - greed for life, for money, for love, knowledge - has marked the upward surge of mankind, and greed - you mark my words - will not only save Teldar Paper but that other malfunctioning corporation called the USA. Thank you. Gordon Gekko
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01-26-2013, 08:33 PM
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#134
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Mar 2003
Posts: 18,085
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Quote:
Originally Posted by rembrandt
You ever wonder why fund managers can't beat the S&P 500? Because they're sheep, and sheep get slaughtered.
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Hahahaha! Good one! How about <insert cliche #1602>? Isn't that hysterical?
__________________
"All animals are equal, but some animals are more equal than others."
- George Orwell
Ezekiel 23:20
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01-26-2013, 08:36 PM
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#135
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jan 2006
Location: Rio Grande Valley
Posts: 38,002
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Quote:
Originally Posted by rembrandt
The point is, ladies and gentlemen, that greed, for lack of a better word, is good. Greed is right. Greed works. Greed clarifies, cuts through, and captures the essence of the evolutionary spirit. Greed, in all of it's forms - greed for life, for money, for love, knowledge - has marked the upward surge of mankind, and greed - you mark my words - will not only save Teldar Paper but that other malfunctioning corporation called the USA. Thank you. Gordon Gekko
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Hey, wow, generates speeches too! Impressive!
Oh, wait, I think that was lifted from a movie.....
__________________
Retired since summer 1999.
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01-26-2013, 08:37 PM
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#136
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Mar 2003
Posts: 18,085
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Quote:
Originally Posted by bondi688
I guess "catching a falling knife" must never be true. I admire your sense of omnipotence in stock picking.
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Nope, I make mistakes with depressing regularity. I was actually talking about an index portfolio, however.
__________________
"All animals are equal, but some animals are more equal than others."
- George Orwell
Ezekiel 23:20
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01-26-2013, 08:41 PM
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#137
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Recycles dryer sheets
Join Date: Aug 2012
Posts: 61
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Please get a grip. You are wound too tight. Don't take the world seriously, or you surely will get burned.
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01-26-2013, 08:47 PM
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#138
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Full time employment: Posting here.
Join Date: Dec 2010
Posts: 576
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Quote:
Originally Posted by brewer12345
Nope, I make mistakes with depressing regularity. I was actually talking about an index portfolio, however.
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I am not disagreeing with you at all. I am also for investing for the long term, I hold index funds and some active-managed funds like Wellington and Wellesley. I am not smart enough to be a market timer. My original point was " do not to take the latest bull run as the norm for the future ", there will be corrections and secular bear markets, asset allocation, flexibility and an adequate cushion to ride out the bad time are important.
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01-26-2013, 08:56 PM
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#139
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Mar 2003
Posts: 18,085
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Quote:
Originally Posted by bondi688
My original point was " do not to take the latest bull run as the norm for the future ", there will be corrections and secular bear markets, asset allocation, flexibility and an adequate cushion to ride out the bad time are important.
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Sounds reasonable to me.
__________________
"All animals are equal, but some animals are more equal than others."
- George Orwell
Ezekiel 23:20
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01-26-2013, 09:08 PM
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#140
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Recycles dryer sheets
Join Date: Aug 2012
Posts: 61
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Program
Quote:
Originally Posted by audreyh1
Hey, wow, generates speeches too! Impressive!
Oh, wait, I think that was lifted from a movie.....
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This program generates quotes for people with no sense of humor.
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