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How About Just Sitting Tight (and Having a Cocktail)?
Old 08-24-2015, 07:20 AM   #1
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How About Just Sitting Tight (and Having a Cocktail)?

So much talk right now about buying low, when a low cannot be predicted. I totally respect the strategy of buying low and selling high, and using reserved cash to buy into the market after a plunge. I just think that I'm not one of those people.

For those like me who have a multi-year reserve of cash and bonds, I am not inclined to use that money to buy into the stock market at a time when I literally have to guess that the market is at or near a low. I will instead use that money and fixed income to ride out any storm.

A lot of what I'm seeing on this board right now is a take-the-cash-out-of-mothballs-and-invest mentality.

Is anyone else just sitting tight?
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Old 08-24-2015, 07:26 AM   #2
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I've bought a little here and there, but only because the market has fluctuated enough to throw off my asset allocation, so I've re-balanced.
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Old 08-24-2015, 07:27 AM   #3
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I always just sit tight. No market timing for me!
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Old 08-24-2015, 07:28 AM   #4
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Hey Mo,

I am and have been a sit tight kinda investor ....doesn't mean I don't try and take advantage of market fluctuations ...but never at the level that constitutes much more than mad money ...I think the bottom is tough to call, but in this current market, looking at the widespread growth and positive signs across consumer numbers, real estate, car sales, etc, I personally believe this is a distinct blip ...but, a blip.


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Old 08-24-2015, 07:36 AM   #5
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Sitting tight has always worked for me, during the tech bubble and in 2008. Don't worry about something you can't control. If you have a solid AA just sit back and watch the show.

If you have extra cash on the sidelines and you feel like jumping in, be my guest.
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Old 08-24-2015, 07:37 AM   #6
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Quote:
Originally Posted by Mo Money View Post

Is anyone else just sitting tight?
<Hand goes up>

Might do some rebalancing if appropriate, but otherwise I'll be sitting on my hands, hoping the worst is over with quickly.
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Old 08-24-2015, 07:38 AM   #7
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"Is anyone else just sitting tight?"
We are standing by and may put some money in when AA is significantly out of balance.
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Old 08-24-2015, 07:43 AM   #8
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Only thing I'm considering (and I may make the decision later today as I'm all M funds) is to hold my nose and convert some of my tIRA to Roth. I was working in 08-09 and just stood pat through all the carnage. Worked pretty well.
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Old 08-24-2015, 07:45 AM   #9
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With future down 600+ points at this moment, might as well sit tight. Actually about to go play golf, so no sitting. As others have said, will rebalance when appropriate.
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Old 08-24-2015, 07:48 AM   #10
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We are sitting tight, mainly because we are not in the acumalation phase.

During the last downturn we did buy in as the market descended. Most people that do this will spread out their purchases. They aren't going all in when they think they are at the low point, they just make a number of purchases.
This way the DCA to take advantage of the sale.
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Old 08-24-2015, 07:50 AM   #11
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E*trade baby looking at the action today...

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Old 08-24-2015, 07:52 AM   #12
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I would guess most people here sit tight and just aren't as vocal as the "might buy" posters (not a criticism of them, hope they do well).

Now I am going back to bed and pulling the covers up over my head for a week.
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Old 08-24-2015, 07:54 AM   #13
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Sitting tight here.....have no intention of catching a falling knife. Will buy a little with 7% cash balance when the dust settles.
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Old 08-24-2015, 08:08 AM   #14
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Here' the way I look at it. If you have some "spare" cash available, and you don't mind nudging your AA to overweight stocks by 2-3% of your overall allocation, why not look to buy now or within the next few days?

I think there is a little bit of "market timing" in all of us. The DOW hit an all time high of 18,312 on MAy 19 of this year. So even if this in NOT the bottom, and you invested at the close today( assume round 16,000 if the futures for today prove correct), you would still be buying at a 12% discount over the high in MAy EVEN IF we are no where near the bottom.

Sure the DOW may end up settling at 10,000 or 12,000 but so what/ At least you didn't buy at the all time high and this is (was) money you had on the sidelines and don't need for at least a 10 year period. Just my 2 cents.
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Old 08-24-2015, 08:08 AM   #15
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I'm still working and have a lump of cash, so I'll probably do some buying. If it drops further, oh well.

Coincidentally, I opened a Vanguard account late last week, and am waiting for my funding transfer to clear. (I'm currently with Fido through my workplace, but have been admiring some of Vanguard's funds.) Looking forward to jumping into the Vanguard pool with the rest of you!
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Old 08-24-2015, 08:30 AM   #16
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I'm in OP's camp. I have enough cash to not have to touch equities for 6-7 years after I retire. I am just going to continue LBYM and my monthly 401K/onn-401K contributions as usual.
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Old 08-24-2015, 08:41 AM   #17
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Quote:
Originally Posted by REWahoo View Post
<Hand goes up>

Might do some rebalancing if appropriate, but otherwise I'll be sitting on my hands, hoping the worst is over with quickly.
+2, as always. I probably wouldn't be retired today if I hadn't given up on market timing 30 years ago...
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Old 08-24-2015, 08:47 AM   #18
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It was very hard not to buy yet. When I logged on this morning, Gilead was trading for $95, Apple for $90, Corning for like $15!

All three of these were trading at trailing, forward PE under 10...I think some were approaching 7 or 8 PE.

By the time I removed my jaw from the floor they had recovered in price somewhat.
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Old 08-24-2015, 08:55 AM   #19
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I'm doing some rebalancing, so selling Total Bond Index and buying Total Stock Market Index.

At times like these I'm also glad of my TIAA-Traditional and its current 4% return
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Old 08-24-2015, 08:56 AM   #20
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Since I'm still working, I "buy" through my 401(k) and regular investments with each paycheck, but otherwise I'm sitting tight. My asset allocation is within my desired range (I got better at that after 2008) and although the headlines and news makes me a bit angsty, I'm reminding myself to stay calm and stay put.
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