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Old 01-07-2016, 12:24 PM   #21
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I hope I have the nerve to buy in. I didn't buy in 2008 drop, I finally joined in 2010.


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Old 01-07-2016, 12:32 PM   #22
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I'm feeling a lot better. With all the threads talking about 2016 bear markets, 2008 repeats, etc., I think we're much less likely to actually experience one this year.
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Old 01-07-2016, 12:34 PM   #23
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I'm feeling a lot better. With all the threads talking about 2016 bear markets, 2008 repeats, etc., I think we're much less likely to actually experience one this year.
+1

If this were a real crash or buying opportunity, people would be talking about the end of days and looking for a place to throw up, not discuss what to buy.
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Old 01-07-2016, 12:34 PM   #24
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My baseline AA right about now is 55/45. If my AA gets down to 50/50, I'm buying to get back up to 60/40 because I'm more willing to have a somewhat more aggressive allocation when stocks become a lot cheaper.
That sounds like a very sensible proposition. My target allocation is 65/32/3 and I think that if a correction/drop/crash were to take the equities portion down to ~55, I might well rebalance to bring it back up.

As Senator said, let's see what we do when it actually happens
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Old 01-07-2016, 03:06 PM   #25
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actually, at this point I'm considering frontloading my 2016 401k contributions
I just bought $4K more for my 401K roth for 2015, it might not be the low and I still have room.

Your idea of front loading is GREAT, although I'll wait for 20% or more drop.
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Old 01-07-2016, 03:09 PM   #26
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Old 01-07-2016, 03:10 PM   #27
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I would re-balance to my preferred AA. Trying to figure out the future of the market is a fools' game. At least a fool's game for me.
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Old 01-07-2016, 03:11 PM   #28
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Old 01-07-2016, 03:15 PM   #29
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+1

If this were a real crash or buying opportunity, people would be talking about the end of days and looking for a place to throw up, not discuss what to buy.
+1

I remember reading an article by a psychologist on market timing. He said something to the effect that "the time to buy is when your fingers are shaking so badly as you dial your broker, that you can barely make the call."

Pre-internet days, of course, but you get the point.

And then there are the likes of John Templeton:

Quote:
In 1939, with Hitler\'s Germany ravaging Europe, John Templeton bought $100 of every stock trading below $1 on the New York and American stock exchanges. Templeton\'s trade got him a junk pile of some 104 companies, 34 of which were bankrupt, for a total investment of roughly $10,400. Four years later he sold these stocks for more than $40,000!
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Old 01-07-2016, 03:40 PM   #30
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What would you buy if another 2008 happened?


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Old 01-07-2016, 03:54 PM   #31
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When I saw the title of the tread, I though it was asking about if you knew this was the start of another 2008 and you wanted to protect yourself from it, what would you do. Seems like the answers were about actions taken after any damage was done.

If I thought this was the start of another 2008, I'd not be so foolish to think that bonds would be any safer than stocks because both asset classes got clobbered. Depending on how certain I was about if another 2008 was in the offing, I'd increase my cash position so I'd have more money to pick-up bargains.
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Old 01-07-2016, 04:27 PM   #32
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I would rebalance a little, but mostly just ride it out. You have no way to know where the bottom is, and I would not want to reduce the income side of the portfolio.
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Old 01-07-2016, 05:01 PM   #33
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I don't think we're heading into another 2008 market but we did "officially" (by definition) enter correction territory on the DOW today.
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Old 01-07-2016, 05:12 PM   #34
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In 2008 we were still working and maxing out on contributions to 401k's which I directed to the funds needed to maintain our AA.

When it happens again I'll be rebalancing to our target AA. I did put in an order last night, which should execute after close of business today to move money from my IRA to Roth. Taxes will be the same but a larger % of the IRA will be converted. It is Wellesley to Wellesley and this is about as close as I ever get to market timing. (I did the same last year during a market dip). The Roth is now substantially bigger than the tIRA so I feel like I'm on the downward slope now but still have a few years of conversions to come.
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Old 01-07-2016, 05:25 PM   #35
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If and when it gets there (down 30 to 40% from recent high), I will look to buy 3 to 5 sectors that got hit the hardest. One would do well just buying the S&P, but picking the most downtrodden sectors seems the right way for bottom fishing.

Additionally, if the market drops that bad, my put options will become in-the-money and get exercised, and I am made to buy the stocks/ETFs by default. I have put options out for Berkshire, the S&P, an energy ETF, and biotech.

After all those options, I still have cash to deploy. But no point in thinking about bottom fishing yet. If and when the time comes, I will look to see what I want to do.
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Old 01-07-2016, 05:29 PM   #36
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Something simple that even simple man as me can understand.
Of course this answer assumes that I can not see a future and cherry pick some individual stock......
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Old 01-07-2016, 05:41 PM   #37
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Originally Posted by audreyh1 View Post
I'm feeling a lot better. With all the threads talking about 2016 bear markets, 2008 repeats, etc., I think we're much less likely to actually experience one this year.
Quote:
Originally Posted by MichaelB View Post
+1

If this were a real crash or buying opportunity, people would be talking about the end of days and looking for a place to throw up, not discuss what to buy.
Don't worry if so many posters still talk about buying. The day is still young. If the market drops to 1/2 as it did in early 2009, there will not be so many posts about buy, buy, buy... I can guarantee it. People will be too scared, and the talk will be about drawing early SS or buying annuities. In the past couple of years, there were so many posts about delaying SS to 70. That could have served as a contrarian signal.
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Old 01-07-2016, 05:43 PM   #38
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Don't worry if so many posters still talk about buying. The day is still young. If the market drops to 1/2 as it did in early 2009, there will not be so many posts about buy, buy, buy... I can guarantee it. People will be too scared, and the talk will be about drawing early SS or buying annuities. In the past couple of years, there were so many posts about delaying SS to 70. That could have served as a contrarian signal.
I would talk with my wife about working few more years (passed planned departure) Which is what I did in 2008.
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Old 01-07-2016, 05:43 PM   #39
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If 2008 happens again I think it is game over. It won't matter what you are invested in.
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Old 01-07-2016, 05:46 PM   #40
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I would talk with my wife about working few more years (passed planned departure) Which is what I did in 2008.
I would too. But for me, that is now water under the bridge. I will have to cope, using whatever I have on hand, plus the early SS.
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