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Old 07-11-2008, 08:44 AM   #21
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Reading things like this makes me worried. This January, I finally decided to take charge of my own finances, and for the first time in my life, I felt that I had a good grasp on the concepts of managing one's own investments - Boglehead style. And now I'm hearing all this talk about how this time is different, and the rules are now changing... But... for better or worse, I'm sticking with my current AA and index fund investment strategy because it still feels like a better approach than reacting to the latest round of bad news. It still has me worried but I don't think that any other approach would make me feel any better.
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Old 07-11-2008, 08:44 AM   #22
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That IS interesting, REWahoo----wonder if that was the Fidelity company line so people wouldn't panic and withdraw all that money? And now they have fine-tuned it by telling people to switch to commodities....But on the other hand, it WAS written three weeks ago---don't know if anything has changed enough within that time to justify the contradictory advice.
From a strictly financial standpoint, it seems Fidelity (or any other place that's both a fund family and a brokerage) would want to have fund owners stay the course and have brokerage account holders churn stocks.

Could explain the contradictory advice, I don't know.
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"Hey, for every ten dollars, that's another hour that I have to be in the work place. That's an hour of my life. And my life is a very finite thing. I have only 'x' number of hours left before I'm dead. So how do I want to use these hours of my life? Do I want to use them just spending it on more crap and more stuff, or do I want to start getting a handle on it and using my life more intelligently?" -- Joe Dominguez (1938 - 1997)

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Old 07-11-2008, 08:44 AM   #23
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If you've got a few years stashed in cash, just hold on, and turn off the darn TV. Better yet if you have a good stash in cash and some munis or dividend producing stocks that will do most of the cash bucket re-filling for you. If you do turn on the TV, don't forget to fasten your seatbelt and take your dramamine!

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Old 07-11-2008, 08:46 AM   #24
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Does your broker receive commissions on your trades? If he does, he has an incentive to convince you to move your money around. I wouldn't change my asset allocation all of a sudden based on this type of panic.
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Old 07-11-2008, 08:56 AM   #25
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OUTSTANDING! The last time I heard "new paradigm" talk was in 1999. This is the best news I've heard in a long time = the bottom can't be too far into the future.
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Old 07-11-2008, 09:10 AM   #26
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And now I'm hearing all this talk about how this time is different, and the rules are now changing...
There is an old saw that is trite, but perhaps worth remembering:

"The four most expensive words are 'this time its different.'"
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Old 07-11-2008, 09:18 AM   #27
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There is an old saw that is trite, but perhaps worth remembering:

"The four most expensive words are 'this time its different.'"
Even a broken clock is right twice a day so you never know for sure, but just the same, the track record of this mentality is not one that I find inspiring.
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"Hey, for every ten dollars, that's another hour that I have to be in the work place. That's an hour of my life. And my life is a very finite thing. I have only 'x' number of hours left before I'm dead. So how do I want to use these hours of my life? Do I want to use them just spending it on more crap and more stuff, or do I want to start getting a handle on it and using my life more intelligently?" -- Joe Dominguez (1938 - 1997)

RIP to Reemy, my avatar dog (2003 - 9/16/2017)
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Old 07-11-2008, 09:19 AM   #28
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Hummm, interesting... Our FA called yesterday and left a message on our answering machine. After three months of silence he would like us to call him back "ASAP" all of the sudden. I wonder what he wants (could it have anything to do with the fact that the porfolio he manages on our behalf lost 15% since last year?). I'll know more in one hour...
Would you rather he didn't call? :confused:
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Old 07-11-2008, 09:22 AM   #29
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OUTSTANDING! The last time I heard "new paradigm" talk was in 1999. This is the best news I've heard in a long time = the bottom can't be too far into the future.
Pretty much what I'm thinking.
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Old 07-11-2008, 09:39 AM   #30
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There is an old saw that is trite, but perhaps worth remembering:

"The four most expensive words are 'this time its different.'"
Those who have been watching the market and knowing what they're doing for a long time have probably seen this all before. (Ups and downs, boom and bust, optimism and doom and gloom...) For someone like me, who just started paying attention to the market this year, I wish I had the benefit for your hindsight!!! But like I said, I still think it's best for me to stick to my current plan (and keep my fingers crossed).
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Old 07-11-2008, 09:39 AM   #31
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Even a broken clock is right twice a day so you never know for sure, but just the same, the track record of this mentality is not one that I find inspiring.
A broken clock, however, is the only clock that is ever EXACTLY right.
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Old 07-11-2008, 09:41 AM   #32
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In the book "A Fool and His Money" john rothschild writes about going into a broker's office. Basically, the broker echoed whatever sentiment the client communicated.

If the client said, "I think CDs are where to be now", then the broker would say, "Yes, I agree. Let's get you into some conservative Treasuries now."

If the client said, "I think it's best to buy low now that the market has dropped 14% this year", then the broker would say, "Yep, that's a good plan. My clients make money doing that all the time."

My point is that you have to be very careful in that not only do you hear what you want to hear, but that folks who are selling you something will tell you what you are predisposed to believe.

I can easily imagine a strategy session at Fidelity that went something like this:

"Now that index funds are down, let's go capture some market share from Vanguard."

"Yep, folks are worried. We can get them to switch easily by praying on their fears."
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Old 07-11-2008, 09:45 AM   #33
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Would you rather he didn't call? :confused:
Yes I would rather he stopped calling to propose changing my AA based on the latest Ameriprise guidelines. I suspect that's why he in such a hurry to talk to me this morning. We'll see what he is selling today...
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Old 07-11-2008, 09:49 AM   #34
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Yes I would rather he stopped calling to propose changing my AA based on the latest Ameriprise guidelines. I suspect that's why he in such a hurry to talk to me this morning. We'll see what he is selling today...
Ameriprise...........sorry to hear that............
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Old 07-11-2008, 09:50 AM   #35
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Ugh, Ameriprise. Unofficial slogan: "Things other than the cream rise to the top, too."
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Old 07-11-2008, 09:54 AM   #36
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Would you rather he didn't call? :confused:
I'll pay you to not call me
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Old 07-11-2008, 10:09 AM   #37
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This is why I divested myself of stocks before I retired last year.
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Old 07-11-2008, 10:11 AM   #38
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This is why I divested myself of stocks before I retired last year.

Good call if you got enough money to do that. Or you plan on having a short retirement
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Old 07-11-2008, 10:15 AM   #39
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Or a long one where your moneys buying power has lost 30% of its value after 20 years.
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Old 07-11-2008, 10:18 AM   #40
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Ameriprise...........sorry to hear that............
I am sorry too. We got an Ameriprise FA in 2001, at a time when we had no clue about investing and too lazy to learn. Right away he locked us in annuities (which sounded pretty good at the beginning!), so we are waiting 2011 for the surrender period to end and cash out. The rest of the money he was managing was transferred to VG a few years ago and I am now managing that money.

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I'll pay you to not call me
I thought I already did pay him to not call me! That's how it feels most of the time anyways!

Anyways, today he is pushing for a much larger cash allocation (30-40%) so that we can pick up some bargains when the bottoms drops out...
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