October 10th Market Plunge

[JustCurious]

On July 11, about 3 months ago, the S&P 500 was at 2,774 which is a little lower than yesterday when it was at 2,785 after the so called "market plunge." Of course in July the market was on it's upward march, but the point is it was at the same level as it is now. I don't understand how people get concerned about a "market plunge" but were unconcerned 3 months ago when the market was at the same level.

[scrabbler1]

Quote:

Originally Posted by JustCurious On July 11, about 3 months ago, the S&P 500 was at 2,774 which is a little lower than yesterday when it was at 2,785 after the so called "market plunge." Of course in July the market was on it's upward march, but the point is it was at the same level as it is now. I don't understand how people get concerned about a "market plunge" but were unconcerned 3 months ago when the market was at the same level.

I agree, as long as the prior date for comparison purposes is fairly recent, as opposed to some ancient date many years ago. Three months is definitely recent enough.

[USGrant1962]

I sold some stock a couple of weeks ago to fund the next two years of spending (sitting as cash in Vanguard Prime MM). That combined with this drop has caused my U.S. stock allocation to hit a rebalancing limit.

Today I'll place an order to move some of my 401(k) bond allocation to U.S. stocks.

This is my first official rebalance since ER

[Jerry1]

If I were DCA’ing, I woul be like the OP and want to put a little more in now. Maybe a reasonable acceleration would be to double up on the next buy? I don’t know, but I’d probably put some extra in now.

[DeborahB]

Quote:

Originally Posted by 53anddone I own 30 or so individual stocks and simply add to them when the price is right. The price is still not right for most but some are getting closer. All pay dividends and nothing fundamental has changed that would affect that for my holdings. A step toward a buying opportunity plain and simple.

I invest in a very similar way. It’s been working for 8 years, no problems. If I have some cash, I buy when the market drops.

[Fedup]

I took a little nibbling through options. I can’t remember when I sold early this year, but I might get it back a little cheaper.

[Jerry1]

Quote:

Originally Posted by JustCurious On July 11, about 3 months ago, the S&P 500 was at 2,774 which is a little lower than yesterday when it was at 2,785 after the so called "market plunge." Of course in July the market was on it's upward march, but the point is it was at the same level as it is now. I don't understand how people get concerned about a "market plunge" but were unconcerned 3 months ago when the market was at the same level.

Also, the S&P was at about 2,720 at the beginning of the year. So we’re essentially flat at this point. Of course there was a lot of volatility this year. No worried yet. Of course at less than a 50% equity AA, I don’t worry too much anyway.

[Car-Guy]

I bought a few dow stocks yesterday (several times). Not a lot (~$100k) and I may buy again today (and DCA them) if it takes another big drop.

[calmloki]

Either you all have nerves of steel or there is some whistling in the graveyard going on. I don't like it when $40k vanishes in a week. My morning mood is not improved when I go to Discover online bank to check on a fund transfer and see this message:
Account service is limited at this time.
Some of our website features are currently unavailable.

Any previously scheduled transactions, bill payments, and loan payments will process as normal
Your balance and account history has been updated as of 10/11/2018
You can view 45 days of account history
New funds transfers and loan payments cannot be scheduled
We appreciate your patience and regret any inconvenience.

Makes a big ol' chicken man want to start stuffing the mattress rather than counting on digital cash representations.

[38Chevy454]

Quote:

Originally Posted by NW-Bound It could be a bad metaphor. This guy was on Tesla autopilot when it happened.

I don't own or plan to own any Tesla car or stock

[karen1972]

Well first off, I assumed it plunged because of me... ie I was out doing a framing inspection on my new home and while I do have 25% down payment in a Mutual Fund, I failed to take out my extra 10% reserve as I told myself to.. so Karma is just messing with me as that 10% just happens to be EXACTLY what I lost in the market yesterday.

Seriously, it was a blip, I do expect some softening before the election and of course people's fear of the trade wars and the Fed tightening, that's a lot of factors making various people all fidgety.

I'd be ok DCA right now as I like the volatility. I expect by the time the election is done, everything will be baked in and then there isn't as much opportunity.

[ERD50]

Quote:

Originally Posted by calmloki Either you all have nerves of steel or there is some whistling in the graveyard going on. ....

A 4%-5% drop, and you are talking about "nerves of steel" or "whistling in the graveyard"?

Get a grip! Many of us handled the 2008 drop w/o getting all weak kneed. I re-balanced what turned out to be near the lows. Yes, bought more stocks when they were down ~ 40%.

So far, this is just a blip of noise. Very likely, if you didn't look for a week or two, you wouldn't even suspect anything happened. That is yet to be seen, but you can't judge on a single digit blip.

-ERD50

[Totoro]

Quite a reversal compared to the peak for me, yet not a really big hit compared to Jan 1st.

• Tracker worldwide +3% (peaked at +9%)
• Tracker emerging -11% (peaked at +6%)
• Individual +2% (peaked at +11%)

All in EUR.

[copyright1997reloaded]

Quote:

Originally Posted by calmloki Either you all have nerves of steel or there is some whistling in the graveyard going on. I don't like it when $40k vanishes in a week.

I lost 20+% in one morning on 10/19/87, and that was AFTER the market went down 3.8% on 10/14/87, and 2.4% down on 10/15/87 and 4.6% on 10/16/87.

Yesterday was a "pimple on the a** " of that. I survived that day and so did the US economic expansion that was happening at that time.


















=

[Fedup]

Quote:

Originally Posted by copyright1997reloaded I lost 20+% in one morning on 10/19/87, and that was AFTER the market went down 3.8% on 10/14/87, and 2.4% down on 10/15/87 and 4.6% on 10/16/87. Yesterday was a "pimple on the a** " of that. I survived that day and so did the US economic expansion that was happening at that time. =

I purchased a put on the market on Friday before the market plunge on Monday 1987. Now I know why, there’s several days of down in the market.

[NW-Bound]

Quote:

Originally Posted by 38Chevy454 I don't own or plan to own any Tesla car or stock

I think Tesla cars are OK. Just keep your eyes wide open, hands on the steering wheel, foot on the brake, like Musk said.

[Lsbcal]

Quote:

Originally Posted by copyright1997reloaded I lost 20+% in one morning on 10/19/87, and that was AFTER the market went down 3.8% on 10/14/87, and 2.4% down on 10/15/87 and 4.6% on 10/16/87. Yesterday was a "pimple on the a** " of that. I survived that day and so did the US economic expansion that was happening at that time.

The 1987 crash was scary but those were quite different economic times. For example, the yield on the 10 year Treasury was 8.9% (the 3 mo Treasury was 5.5% !!). Real bond returns were highly positive. So it paid to move to bonds over stocks in those days. Just saying this because there were true underlying reasons for many to move out of stocks besides just pure panic ... and there was plenty of pure panic.

My Plan B is only effective when variables associated with recessions of the past are present. That is not the case now. So I'm sitting tight.

[NW-Bound]

Quote:

Originally Posted by calmloki ... I don't like it when $40k vanishes in a week...

That's 1/2 of what I lost just yesterday. And of course I do not like it.

You have more in real estate, while I only invest in equities. So, your pain is just from a paper cut.

[RobbieB]

I couldn't care less and am doing nothing as a result.

[HadEnuff]

When we had the bump in late January-early February 2018 I did some soul searching and decided I was not comfortable with my AA. It wasn't predicated on a belief that the market was about to crash, but after assessing my needs, and what would happen if the market continued to climb, or stay put, or fall back, I found an AA that seemed to better suit my situation, and my personal risk tolerance.

i guess I hit the sweet spot, because this isn't bothering me.