Join Early Retirement Today
Thread Tools Search this Thread Display Modes
Old 02-16-2014, 10:22 PM   #61
Full time employment: Posting here.
Join Date: Oct 2012
Location: Reno
Posts: 594
Originally Posted by inquisitive View Post
The OP is talking about a contrarian strategy.

Regarding throwing more money into the market, I've never understood this idea. The same for people who talk about making a large amount of money in 2008 by buying after the decline. Aren't people already fully invested? Where is the money coming from to add additional money? If one has a long-term CD, you can't cash it out. No one should have large amounts of cash sitting around because it should have already been in the stock market. And if one doesn't use market timing then again, the money is invested. Making a change in asset allocation doesn't make sense. So are people selling real estate to put money in the stock market?
There is nothing wrong with having cash, particularly if it is part of your allocation strategy. One reason my basic allocation is 55% stock is that I'm willing to hold up to 15% cash.
Finally, while I agree with the critique of market timing, I took gains in Fidelity Contra in 2000 (or was it 2001?) when the S&P was climbing to above 30 P/E levels. Crazy, I know. Also started harvesting gains below my stock allocation in '06 and '07. Crazy and I gave up some gains in '07 and '08, until they all got puked up.
I give my self a 5% margin + or - around 55% stocks based on P/E and other factors and the cash either gets used, slowly, or gains get harvested. If I'm wrong, I'm wrong. Generally I stay around the allocation level, although it was 80% back in 2000 and 65% in 2006.
Markettiming, but to me the issue is whether I'm likely to sell when the market crashes. Didn't do it in the early oughts or 2008-'09, although I did harvest a few gains in late '09 and '10.

I've let stock creep up to 63% in early January and was getting ready to sell about 2% to reduce to 60%, then the market did the adjusting for me.

RobLJ is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off

Similar Threads
Thread Thread Starter Forum Replies Last Post
FIREside-- Bitter Criticism by friends / family & dealing with it? trib1 FIRE and Money 72 05-24-2009 06:34 AM
Telling family and friends: 1 day to go! walkinwood FIRE and Money 16 05-01-2008 02:09 PM
Financial Advice for Friends and Family - How to handle it? chinaco FIRE and Money 22 03-19-2007 01:06 PM
Does anyone feel jealousy from friends/family/others? FatBoy71 FIRE and Money 92 02-25-2007 09:54 AM


All times are GMT -6. The time now is 11:30 PM.
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2018, vBulletin Solutions, Inc.