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The Inevitable 10% Correction
10-15-2014, 11:43 AM
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#1
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Thinks s/he gets paid by the post
Join Date: Mar 2006
Location: Houston
Posts: 4,337
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The Inevitable 10% Correction
The high on the S&P was set at 2019.26 on 19 September. The 10% correction will be officially achieved at 1817.33. So far, the days low as of this post is 1820.66. We may not hold above this into the close but this is close enough for me to say we've now corrected 10%.
My Vanguard CFP recommended I increase my equities allocation from 40 to 60%. That was just a couple of weeks ago. I'm sure glad I didn't.
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The object of life is not to be on the side of the majority, but to escape finding oneself in the ranks of the insane -- Marcus Aurelius
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10-15-2014, 11:45 AM
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#2
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Recycles dryer sheets
Join Date: May 2012
Posts: 421
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So what's the thought of doing a backdoor Roth today? Pay taxes on lower amount and bounce back would be tax free?
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10-15-2014, 11:48 AM
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#3
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Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Join Date: Jun 2008
Posts: 13,150
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Just for grins, it's days like today to run the market ticker on my computer 
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Have you ever seen a headstone with these words
"If only I had spent more time at work" ... from "Busy Man" sung by Billy Ray Cyrus
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10-15-2014, 11:49 AM
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#4
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Recycles dryer sheets
Join Date: Jul 2013
Location: Cape Canaveral
Posts: 93
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 Quote:
Originally Posted by 2B
The high on the S&P was set at 2019.26 on 19 September. The 10% correction will be officially achieved at 1817.33. So far, the days low as of this post is 1820.66. We may not hold above this into the close but this is close enough for me to say we've now corrected 10%.
My Vanguard CFP recommended I increase my equities allocation from 40 to 60%. That was just a couple of weeks ago. I'm sure glad I didn't.
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Now seems like a great time to shift some into equities to me. Im gonna give it a cash infusion personally.
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10-15-2014, 12:03 PM
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#5
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Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Join Date: Mar 2003
Posts: 18,085
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I was thinking something similar. I noticed that even on an ugly day like today a few of the more badly battered things I own or watch are starting to move up. This also looks like a day to collect profits on treasuries. I liquidated much of a stake in a leveraged treasury ETF today.
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"All animals are equal, but some animals are more equal than others."
- George Orwell
Ezekiel 23:20
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10-15-2014, 12:04 PM
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#6
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Thinks s/he gets paid by the post
Join Date: Jul 2011
Location: The Bay Area
Posts: 2,736
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Quote:
Originally Posted by shasta
Now seems like a great time to shift some into equities to me. Im gonna give it a cash infusion personally.
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Agreed. Just received 401k/Roth 401k in Fido Rollover IRA and Rollover Roth IRA. Came from a 401k Target Fund, and will be in FSTVX (Total Mkt Advantage Class) at today's market close.
This was already part of our 'consolidation' plan but, I consider the timing fortunate. Hope I still consider it so by Friday's close. 
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You may be whatever you resolve to be.
100% x 10% > 10% x 100%
Small pensions & SS cover essentials
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10-15-2014, 12:15 PM
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#7
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Recycles dryer sheets
Join Date: May 2012
Posts: 421
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My first Ira to Roth conversion done, thru vanguards website, just exchanged from IRA to Roth, kept the same fund, hope I did it right, just moved a partial amount out of one fund, is that okay? Will just trigger tax on the amount I moved?
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10-15-2014, 12:16 PM
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#8
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Thinks s/he gets paid by the post
Join Date: Nov 2009
Location: SF East Bay
Posts: 4,342
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Being a long-term holder of passive index funds, my "strategy" mainly involves not checking my balance on days like this, and waiting until we've had a few up days before checking again.
Hopefully we'll actually have a few up days, or I'll have to brace myself before logging in 
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Contentedly ER, with 3 furry friends (now, sadly, 1).
Planning my escape to the wide open spaces in my campervan (with my remaining kitty, of course!)
On a mission to become the world's second most boring man.
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10-15-2014, 12:20 PM
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#9
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Recycles dryer sheets
Join Date: Jul 2013
Location: Cape Canaveral
Posts: 93
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Quote:
Originally Posted by Major Tom
Being a long-term holder of passive index funds, my "strategy" mainly involves not checking my balance on days like this, and waiting until we've had a few up days before checking again.
Hopefully we'll actually have a few up days, or I'll have to brace myself before logging in |
Im the exact same way. 
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10-15-2014, 12:22 PM
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#10
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Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Join Date: Nov 2007
Posts: 7,746
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Looks like a good day to make the 2014 IRA contributions. I just wish my Vanguard individual 401k was approved already instead of sitting in my mailbox with the flag up... Maybe mr. market will wait for my approval before tearing back upwards.
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Retired in 2013 at age 33. Keeping busy reading, blogging, relaxing, gaming, and enjoying the outdoors with my wife and 3 kids (8, 13, and 15).
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10-15-2014, 12:22 PM
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#11
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Thinks s/he gets paid by the post
Join Date: Mar 2010
Posts: 1,994
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Quote:
Originally Posted by Major Tom
Being a long-term holder of passive index funds, my "strategy" mainly involves not checking my balance on days like this, and waiting until we've had a few up days before checking again.
Hopefully we'll actually have a few up days, or I'll have to brace myself before logging in |
Same here.
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10-15-2014, 12:39 PM
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#12
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Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Join Date: Jul 2008
Posts: 35,712
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I am down close to $250K from the high.
Failing to sell high (hey, I was busy RV'ing), all I can hope to do now is to buy low. But it is not that low yet. 
The correction is finally here. Long live the correction!
Oops! Wrong thing to say. 
PS. The RV'ing is a lame excuse. Despite being a self-proclaimed market timer, I failed to sell high. Pure and simple.
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"Old age is the most unexpected of all things that happen to a man" -- Leon Trotsky (1879-1940)
"Those Who Can Make You Believe Absurdities Can Make You Commit Atrocities" - Voltaire (1694-1778)
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10-15-2014, 01:12 PM
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#13
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Thinks s/he gets paid by the post
Join Date: Jan 2005
Location: northern Michigan
Posts: 2,215
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Quote:
Originally Posted by shasta
Now seems like a great time to shift some into equities to me. Im gonna give it a cash infusion personally.
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Could be, but I'm waiting a bit longer yet, to see how this plays out. Considering how many consecutive years the market has been up (mostly due to Fed manipulation), and considering the economic state of the world in general (lousy), I don't think this is going to be one of those corrections that is over quickly. I think it may drag on for a while, and I don't think the market will bounce back strongly right after that, either. I may be all wrong, we'll see.......
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10-15-2014, 01:15 PM
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#14
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Thinks s/he gets paid by the post
Join Date: Jun 2013
Location: Bonita (San Diego)
Posts: 1,795
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IRA contributions and semi-monthly taxable investments go in tomorrow at a 10% discount from last month! Woohoo!
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"So we beat to our own drummer in the sun;
We ask for nobody's permission to run.
I just wanna live in a world like that;
Now I'm gonna live in a world like that!" - World Like That, O.A.R.
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The Inevitable 10% Correction
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10-15-2014, 01:19 PM
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#15
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Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Join Date: Feb 2011
Location: NC Triangle
Posts: 5,807
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The Inevitable 10% Correction
I recall sitting in a staff meeting of about 150 people in early 2009. No good news at all, layoffs, funding dropped, stocks tanking. I thought "crap, I'll never be able to retire now".
But it's 2014 and I don't have to go to work anymore. I didn't do anything but Roll, Roll, Roll, Brother Trucker.
(That song was written for Studs Terkel's "Working")
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10-15-2014, 01:30 PM
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#16
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Thinks s/he gets paid by the post
Join Date: Sep 2013
Location: Cincinnati, OH
Posts: 4,373
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Have to agree that the correction has long been predicted by many, seems it is finally here.
The thing to keep in mind, as long as you are not selling off, just ride it out. If you have some extra cash, might be a good time to buy low and then ride some gains.
I would not mind if this bear would decide it is time to go hibernate though
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The problem isn't artificial intelligence, it's natural stupidity.
You can't spend yourself to prosperity.
Semi-Retired 7/1/16: working part-time (60%) for now [4/24/17 changed to 80%]
Retired Aug 2, 2017; age 53
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10-15-2014, 01:41 PM
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#17
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Recycles dryer sheets
Join Date: Jul 2013
Location: Cape Canaveral
Posts: 93
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 All the dreams I had of how big next years raise would be at rebalance - crushed in a month.
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10-15-2014, 01:45 PM
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#18
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Full time employment: Posting here.
Join Date: Jan 2014
Location: Austin
Posts: 661
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Quote:
Originally Posted by shasta
Now seems like a great time to shift some into equities to me. Im gonna give it a cash infusion personally.
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Same here. My 5% "Cash" has been sitting in VWALX (municipal bond fund) and I exchanged all of it for Wellington today.
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ER'd 6/1/2014 @ age 53. Wow, is it already 2022?
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10-15-2014, 01:47 PM
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#19
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Full time employment: Posting here.
Join Date: Jan 2014
Location: Austin
Posts: 661
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Quote:
There's still time for a Santa Claus rally.
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ER'd 6/1/2014 @ age 53. Wow, is it already 2022?
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10-15-2014, 01:55 PM
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#20
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Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Join Date: Feb 2011
Location: NC Triangle
Posts: 5,807
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CNBC and similar are probably kicking up their heels. They trot out new hotties and get the ad dollars as viewership rises.
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