Rate of return May-Aug 2008

[David1961]

I do a detailed calculation of my investments each quarter and just did mine as of August 2008. From May 1 to Aug 1, I'm down 7.2%. It's the biggest one quarter drop, and was surprised to learn I dropped even more than during the 1987 crash. I'm still working and not really worried, but was wondering how it compare with other's returns.

 

[Leonidas]

I do a detailed calculation of my investments each quarter and just did mine as of August 2008. From May 1 to Aug 1, I'm down 7.2%. It's the biggest one quarter drop, and was surprised to learn I dropped even more than during the 1987 crash. I'm still working and not really worried, but was wondering how it compare with other's returns.

May 1 to Aug 1? 6.9%

But I lost a heck of a lot more in 1987 - in a couple of days. For me, this has been a mere blip compared to that.

 

[ziggy29]

I do a detailed calculation of my investments each quarter and just did mine as of August 2008. From May 1 to Aug 1, I'm down 7.2%. It's the biggest one quarter drop, and was surprised to learn I dropped even more than during the 1987 crash. I'm still working and not really worried, but was wondering how it compare with other's returns.

It's one of those times. In terms of traditional asset classes, this is probably the most *indiscriminately bad* prolonged market swoon since 1974. Note that even in the 2000-2002 bear market, diversified investors could have been saved by having REITs, small caps, value stocks, emerging markets and bonds, all of which were flat to rising even as large cap U.S. tanked.

But in this market, NONE of the traditional asset classes are working, and only if you go into hard assets and sector plays will you see any green numbers. In this market, at least where those common traditional asset classes are concerned, diversification has been almost useless.

FWIW, unless the bleeding stops soon, 2008 will be the first year I decline in net worth since I started tracking in the late 1990s. But still I trudge on, trying to find solace in buying cheaper shares with new money.

 

[FinanceDude]

I have to go back and look, I am down 8.44% YTD (Jan1-July 31)..............

 

[W2R]

It's one of those times. In terms of traditional asset classes, this is probably the most *indiscriminately bad* prolonged market swoon since 1974. Note that even in the 2000-2002 bear market, diversified investors could have been saved by having REITs, small caps, value stocks, emerging markets and bonds, all of which were flat to rising even as large cap U.S. tanked.

I didn't realize that. The market itself doesn't seem that bad, though I cannot speak from experience since I have not invested substantially for as long as you have. Also, I suppose I was psychologically prepared for the housing crunch and inflation. My ER is planned for November, 2009, and I am the unluckiest person who ever lived so I have been bracing for the worst. So far, this seems like a piece o' cake compared with what I had in mind.

But in this market, NONE of the traditional asset classes are working, and only if you go into hard assets and sector plays will you see any green numbers. In this market, at least where those common traditional asset classes are concerned, diversification has been almost useless.

Sure has. I have been thinking, "yeah, right?" as I read about diversification in various equity asset classes and how this is supposed to help. Uh huh. But in a different sense I think that diversification still DOES work - - just a little differently than it has in the past. Those in oil and gold did pretty well this spring, from what I understand, and I would imagine those managing rental units are probably still collecting rent every month, for example. Maybe it is time to re-define what are considered to be traditional asset classes.

FWIW, unless the bleeding stops soon, 2008 will be the first year I decline in net worth since I started tracking in the late 1990s. But still I trudge on, trying to find solace in buying cheaper shares with new money.

It is pretty terrific that you got through 2000-2002 so nicely. The present mess will eventually resolve, though - - at least, it always has. Maybe after the elections things will start looking up.

 

[ejman]

Well, down 5.3 % for the time period you specified. down 7.5 % for the period 8/1/87 - 11/1/87 but may be yopu picked a different period for the 87 crash?

 

[Spanky]

I do not track by quarter. YTD (1/1 to 8/4) is -4.31%.

 

[unclemick]

9 -10 yrs into retirement circa 08/05/2002 roughly speaking - I was down north of -16.5% (60/40ish portfolio) or more money in $ than I retired with in 1993.

Soooo - after staying the course - I was issued a true grit merit badge?? - well not exactly!

Still get twinges in down markets(at least those I've experienced since 1966) but 'press on regardless', 'stay the course', 'hurry up just stand there' has worked it's magic every time.

I still get gervous and nerky - er nervous and jerky. But acting silly is optional(ie buying high, selling low).

Party on!

heh heh heh - I reserve 'this time it's different' for the Saint's. I keep the faith.

 

[windsurf]

unclemick:

Still get twinges in down markets(at least those I've experienced since 1966) but 'press on regardless', 'stay the course', 'hurry up just stand there' has worked it's magic every time.
* * *
heh heh heh - I reserve 'this time it's different' for the Saint's. I keep the faith.


Ah . . . soothing balm from a sage. Feels good to "hurry up and stand here."

 

[FIREd]

From 5/1 to 8/1, down 4.9%. Can't compare to 87 because it was only 13 back then...

 

[David1961]

Well, down 5.3 % for the time period you specified. down 7.5 % for the period 8/1/87 - 11/1/87 but may be yopu picked a different period for the 87 crash?

For the record, my value between 8/1/87 and 11/1/87 decreased by 6.3% compared to a 7.2% decrease between 5/1/08 and 8/1/08. But to be honest, I was just beginning in investing in 1987, so I'm sure I have a much different asset allocation now.

 

[W2R]

I do a detailed calculation of my investments each quarter and just did mine as of August 2008. From May 1 to Aug 1, I'm down 7.2%. It's the biggest one quarter drop, and was surprised to learn I dropped even more than during the 1987 crash. I'm still working and not really worried, but was wondering how it compare with other's returns.

From May 1st to Aug 1st, I am down less than 4.7%.

I have a fairly conservative portfolio right now, obviously. I think that is probably all this demonstrates.