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Old 01-21-2009, 10:08 AM   #41
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What sucks is the rebalance on schedule at start of new year (wouldn't want to time the market) which of course was a fairly significant false hop up.

Bleh.
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Old 01-21-2009, 10:44 AM   #42
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DW was layed off today, but we'll be OK.
Sorry to hear this. It appears your wife already sensed that it was coming, so you have had some mental preparation. Best wishes to you.
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Old 01-21-2009, 12:51 PM   #43
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I rebalanced on 1/15. That was way better than rebalancing on 1/2 or 1/3
Which is when I did it.
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Old 01-21-2009, 01:27 PM   #44
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...
Tomorrow I will buy. Perhaps 1% worth.
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I bought some more today (about 1% of portfolio).
Hey, I am a man of my words. Bought roughly 1% worth, sprinkled among PFF, AGU, FTK, POT, and BRK/B.

So far so good. Buy, buy, buy. Even when you are in tears.

As a diversified stock holder, what I have found being a somewhat active investor (but no daytrader) is that what you buy is not as important as when you buy. Buy, buy, buy. Stock allocation: 49% now.
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Old 01-21-2009, 07:12 PM   #45
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Sorry to hear this. It appears your wife already sensed that it was coming, so you have had some mental preparation. Best wishes to you.
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Sorry to hear but doesn't your wife have that incredible sewing ability ? Maybe she could do that part time while looking for a new job . I love personalized purses .
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I am so sorry to hear this! Glad you will be OK, but still, it probably isn't what you had hoped or planned.
Thank you all for your kind remarks. We had a whole bottle of wine last night (twice what we normally have). Not sure about the sewing, you must be thinking of someone else.
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Old 01-21-2009, 07:57 PM   #46
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What sucks is the rebalance on schedule at start of new year (wouldn't want to time the market) which of course was a fairly significant false hop up.

Bleh.
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rebalanced on 1/15. That was way better than rebalancing on 1/2 or 1/3
Which is when I did it.
I've settled on January 15 as my official rebalance date for several reasons. One is that there often seems to be a late Dec and early Jan run-up. This may be due to end-of-year window dressing, but perhaps is even more influenced by the start of year money coming into the market.

Jan 15 is a more practical date for me because it takes a few days into Jan to get my final fund distributions reported, and then I have to calculate estimated taxes. By Jan 15 I know approx the taxes owed by my retirement fund, and since this comes out of cash, it impacts the fund rebalancing.

Over the past few years it always seemed that if I reinvested in early Jan, the market would immediately sell off, but if I waited until Jan 15, there would be a big Jan rally. But not this year! So now I'm sticking with Jan 15 and letting it average out. (But I still suspect over time Jan 15 is better because of the first-of-year market shenanigans).

Audrey
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Old 01-21-2009, 08:53 PM   #47
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Thank you all for your kind remarks. We had a whole bottle of wine last night (twice what we normally have). Not sure about the sewing, you must be thinking of someone else.
Oops that was Marquette ! I'm still wishing you well !
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Old 01-21-2009, 11:39 PM   #48
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Stock allocation: 49% now.
At market close today, my equity portion went up roughly 4%. That brings up the AA to 50/50!

Think about that a bit. Around 50/50 AA, a 4% price move of equities changes the AA by 1%.

The thing keeps balancing itself. Do I buy more tomorrow? Should I?

Ah, if it were so easy, everybody would be rich.

But I don't need to be rich. I just want enough to stay FIRE'd.
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Old 01-22-2009, 07:45 AM   #49
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And the problem is, it's only our assets that are correcting in price, not expenses (other than gas prices)...
Haven't you heard about deflation? Everything will get cheaper, so you will be just as well off as before. Stocks and housing are leading the way - these things always have leading sectors Just be patient - the other stuff will catch up.
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Old 01-22-2009, 10:41 AM   #50
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Around 50/50 AA, a 4% price move of equities changes the AA by 1%.
Well, it depends on what the bond portion does. But if the bonds don't change in value, then a 4% equity increase would change your allocation from 50/50 to 51.9%. Did I get that right?
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Old 01-22-2009, 12:07 PM   #51
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Well, it depends on what the bond portion does. But if the bonds don't change in value, then a 4% equity increase would change your allocation from 50/50 to 51.9%. Did I get that right?
Not quite. If you had $100 in stocks and $100 in bonds originally, with a 4% jump in stocks you now have $104 in stocks and $100 in bonds.

104/204 = 50.98% stocks.
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Old 01-22-2009, 02:53 PM   #52
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Yes, I did the math wrong.
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