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Old 02-10-2016, 01:20 PM   #21
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Well I guess its a good thing I'm a very stubborn person. When my investments go down it doesn't scare me... it does piss me off though. The market is simply wrong, I'm the one with the right ideas.
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Old 02-10-2016, 03:32 PM   #22
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Been bouncing around 4 - 6 % loss since mid 2015, but still up around 300K from
2014. I started selling some winners around DOW 14,000 in anticipation of retirement
and to lock in some gains from the great recession. I feel good we are out of some
higher risk investments and went from 70/30 to 58/42, also, built a 3 + year cash position in the event we experience a significant downturn. I'm neither buying or selling at the moment, just staying the course like I've been taught. Eventually, hope to further reduce to 30 % or so stocks. The need to take risk is diminishing every year.
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Old 02-10-2016, 03:56 PM   #23
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Guns and bullets are my contingency plan if I'm diagnosed with Alzheimer or a terminal illness
In such a case, you should only need one of each.
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Old 02-10-2016, 04:35 PM   #24
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+1. We maintain 3+ years of spending in cash, I-bonds and short term bonds to ride out market downturns.
Yeah, this is sort of a "buckets of money" approach. If you make sure you keep several years of living expenses in "safe stuff", it's easier to weather the bear markets, drawing down the cash and "cash-ish" stuff for expenses, and waiting for the market to recover so you can replenish that bucket.
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Old 02-10-2016, 04:43 PM   #25
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I have a very high strung, nervous temperament about most things, but not about investing. I can't afford that luxury.

In addition I am sure it helps a lot that I have several different income streams that are independent of market conditions. As my dear departed mother would have said if in similar circumstances, rolling her eyes, "This wasn't by accident, you know!"

Still, over 50% of my spending money DOES come from my portfolio, so I keep an eye on it. To be honest, this just seems like nothing after going through 2008-2009. On March 9th, 2009, the Dow Jones hit 6443; yesterday it hit 16014. The market could become just as bad as it's 2009 low, or worse! I'm not saying that it won't because I have no idea. But it's not there, and for me this dip is just so insignificant thus far.

I came out of 2008-2009 with a somewhat larger portfolio than previously because I bought low instead of selling. This time, if the market plunges just as far, I won't have as much cash to spend buying low. Still, I think I would be just fine as long as I don't sell.
W2R, can't wait until I see your WHEEEEE post again
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Old 02-10-2016, 04:46 PM   #26
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In 2008, I lost hundreds of thousands of dollars, panicked and sold all equities and got completely out of the market. It took me years to feel comfortable enough to get back in. Obviously, selling was a mistake.

Interestingly, this go around I am not panicked at all. And, I am even buying as the market goes down. The difference is:
(a) I read and learned a lot from this forum
(b) I am in Index funds and not individual stocks
(c) I have my portfolio balanced to a level I feel comfortable with. While my % of equities is lower than what I believe most people have on this forum - I learned my own risk tolerance. And now the market downturn does not make me panic.
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Old 02-10-2016, 05:13 PM   #27
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I've still been adding, including some in January and February. I have to say it takes some nerves of steel to do so.
This is exactly why putting it on autopilot every month makes so much sense to me. We invest every month on the 1st and 15th. It takes no nerve whatsoever!
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Old 02-10-2016, 05:28 PM   #28
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W2R, can't wait until I see your WHEEEEE post again
What, cashing out a big chunk of my portfolio to buy my dream home in cash last May was not enough? I'm sure I must have said it at some point, but just in case I didn't then let me say it in retrospect: "WHEEE!!!"



I don't feel very Wheee-ish (Wheee-like?) right now, though, with the market being so wonky.
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Old 02-10-2016, 05:33 PM   #29
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In 2008, I lost hundreds of thousands of dollars, panicked and sold all equities and got completely out of the market. It took me years to feel comfortable enough to get back in. Obviously, selling was a mistake.

Interestingly, this go around I am not panicked at all. And, I am even buying as the market goes down. The difference is:
(a) I read and learned a lot from this forum
(b) I am in Index funds and not individual stocks
(c) I have my portfolio balanced to a level I feel comfortable with. While my % of equities is lower than what I believe most people have on this forum - I learned my own risk tolerance. And now the market downturn does not make me panic.
That is a heart-breaker. The upside of it is that it is extremely unlikely that you would ever forget and do that again. And good for you to not panic! Even if you do, the emotion is one thing and acting on it is another.
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Old 02-10-2016, 06:13 PM   #30
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In such a case, you should only need one of each.
What if the first gun jams wouldn't I need more bullets to load the second
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Old 02-10-2016, 06:46 PM   #31
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Stepped back in today - sold some short term bond fund VBIRX and bought VIG - the dividend stock fund. I figure a 2.49% yield on VIG is not bad as a defensive play, especially as I don't think a recession is coming (i.e. dividends probably won't come tumbling down). My current allocation is: 53% pure stock funds, 5% REIT fund, 37% bond funds 5% cash (also part of my very conservative defensive play). Cash and bonds together = 10.8 years of expenses.....
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Old 02-10-2016, 07:03 PM   #32
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Having lived through two 40%+ declines, all I can say is that 'You ain't seen nothing yet."
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Old 02-10-2016, 08:27 PM   #33
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Having lived through two 40%+ declines, all I can say is that 'You ain't seen nothing yet."

I looked at a historical PE chart and this market isn't close to being a bargain, in fact it is still rather high. Im sure pitiful bond yields are providing some price support though. I need 10% more down before I go back in. Of course if it does drop 10%, I will wait for 15% and miss the train pulling away from the station.


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Old 02-10-2016, 09:05 PM   #34
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I also lost a lot but relatively sure that the Bear Market just started. It could go much lower than 10%. The Market indicates that we are sliding into Recession while the Feds telling us that we are OK but the rest of the World is not. Anyway my plans to add more to my individual stocks holdings is on hold for now while losses continue to mount.
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Old 02-10-2016, 09:38 PM   #35
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I also lost a lot but relatively sure that the Bear Market just started. It could go much lower than 10%. The Market indicates that we are sliding into Recession while the Feds telling us that we are OK but the rest of the World is not. Anyway my plans to add more to my individual stocks holdings is on hold for now while losses continue to mount.

Sentiment sure is negative. I just looked at my accounts, thought I had about 10% in Total Stock, but it is actually around 6%. Would like a quick blow off so I could put 25% or so in some common equity funds. But being brave enough to actually do it while having avoided all the carnage the past year makes it hard to reenter.


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January was a real kick in the teeth!
Old 02-10-2016, 10:51 PM   #36
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January was a real kick in the teeth!

I held my nose and bought bond funds steadily in 2013 and 2014 to keep my allocation where it needed to be.

Since August 2015 I have held my nose and bought stock funds, mostly international, to keep my allocation where it needed to be.

Hasn't been easy though.


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Old 02-11-2016, 04:50 AM   #37
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For what? To kill yourself? or to rob banks?

I guess I don't "get" the guns-and-bullets reference.

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I If they go to $0, I have guns and bullets.
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Old 02-11-2016, 05:38 AM   #38
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For what? To kill yourself? or to rob banks?

I guess I don't "get" the guns-and-bullets reference.
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If I had individual stocks, I would be more worried. I am down about the same as you, maybe a bit more, although I am still in the buying mode. I purchase the same ~11K a month, sometimes slightly more.

Individual stocks can go to $0, no matter how big the company is. Indexes likely not. It is probably NOT different this time.

IVV, IVW, IWM, QQQ, DVY are my main holdings. If they go to $0, I have guns and bullets.
I assumed Senator meant he would have guns and bullets to defend himself and what he owns if all goes into financial chaos. But also thought it was a joke.
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Old 02-11-2016, 07:37 AM   #39
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This is exactly why putting it on autopilot every month makes so much sense to me. We invest every month on the 1st and 15th. It takes no nerve whatsoever!
Truer words were never spoken (I mean "typed"). For those who have the opportunity to regularly invest in things like employer retirement plans, just keep plugging away.

Maybe you stumbled on e-r.org to find helpful advice for achieving (or equally importantly, sustaining) an early retirement? Or - and this is what I think of - maybe you're someone farther down the road who's worked year after year and just can't keep on doing it indefinitely (for whatever reason)? Study after study is available that all point to the same, boring, approach.
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Old 02-11-2016, 08:20 AM   #40
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if your 5% loss = $170,000, doesn't that mean you still have over $3,200,000 moldering away in the stock market? Some might view that as a rather enviable position in which to be. As in, you probably won't have to sell plasma to buy a tank of gas for the old Corolla.
Actually, the S&P was at 2,129.20 on 5/18/15. It is now 1,851.86. That is an almost 15% drop. Most stocks in the S&P are down 20%+. To be down 5% and lose $170K does take 3.2M.

It only takes $1.13M to get that kind of drop and now be worth $170K less. If you bought at the wrong times, as in on a regular schedule, you may not even match the S&P returns and have suffered more. A far cry from $3.2M.

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I assumed Senator meant he would have guns and bullets to defend himself and what he owns if all goes into financial chaos. But also thought it was a joke.
Yes, it is a joke. (unless the S&P actually goes to 0)... If the S&P actually went to 0, money would be of little use. Gold would be hard to spend. Banks would be closed and out of money. Politicians and their cronies would still be living the fat cat life and that would have a tendency to upset people .

You would need an alternate plan... Of course, drinking may also be a solid option, so stocking up on some whiskey would not hurt a bit either.
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