how many thought they were aggressive investors?

[mathjak107]

how many have changed their minds over the last few weeks about whether they are truely aggressive investors who are usually 70-100% equities? everyone feels like they got the stomach for a drop before it happens but i think quite a few are finding out they really dont have what it takes ...

im glad that over the last few years i shifted from 80-90% equities to my 45-50% and sleep a lot better for it.

 

[Urchina]

We're sleeping just fine and are even a *little* excited, since equities are essentially on sale for us. We're 95% in equities, but will probably scale that back to 85-90% or so should we decide to do some investing for current income.

The crash in housing prices also means that our goals of ER in 10-11 years and buying a bigger home are no longer absolutely incompatible. I just couldn't figure out how to swing it last year, but now I can see the light.

I'm a little worried for my FIL and grandparents, though...

 

[Dawg52]

im glad that over the last few years i shifted from 80-90% equities to my 45-50% and sleep a lot better for it.

I'm in that range, but this crap still chaps my a$$. Maybe I need to be 25% or less in equities. Looks like I will be in that range shortly, if I like it or not.

 

[FUEGO]

I'm 100% equities but still in accumulation phase. I now realize how it will feel to be 100% equities in retirement - and I will probably back down a bit. Unless I can get a dividend paying portfolio with enough slack to pay the bills and then some.

Since I'm still accumulating, this downturn is nothing but good news for me long term. I'm buying at prices not seen for four years. As long as I have a job...

 

[dex]

I'm not at my allocation goal.
I did put $850 in the market today and 4K on fri - 3K in foreign small stocks.
I'm still averinging into the market.

 

[ziggy29]

I really do need to rebalance with the haircut I've taken since I'm probably 8% less in equities than my target. The thought of reaching out to grab this plunging knife is paralyzing me, though.

 

[Caoineag]

Still accumulating so still loving my 100% stock position. I have about 30 years before I need this money.

 

[retire@40]

This really is a good test of one's intestinal fortitude.

I haven't changed my equity allocations, but I have been increasing my real estate portion with new purchases.

So, I'm comfortable with my allocations, although disturbed with their performance right now. Having 35% in cash is a good feeling in these times and my earned income is pretty secure. Even without my earnings and a meltdown of equities, I have enough to keep me and my family going comfortably for 8 to 10 years, 12 to 15 if we completely cut out travel.

 

[semtex]

I am still fully invested on equity(5 retirement acct, one cash acct). All in penny stocks,

But it is tough.

 

[Sarah in SC]

Accumulation phase, keeping it real.

 

[ERD50]

I'm going to go run the numbers and see how far out my AA is - I'm shooting for 60~70% EQ. If I'm outside that, I should be selling bonds tomorrow, buying SPY the next day.

-ERD50

 

[youbet]

im glad that over the last few years i shifted from 80-90% equities to my 45-50% and sleep a lot better for it.

My problem is that at 48% equities (after today!), I'm developing a little insomnia with the current happenings and outlook.

2.3 yrs into RE, I keep re-doing the budget to convince myself we're OK. Those "discretionary" line items everyone talks about are mostly gone and we're having only minimal solace from the fact that the "basics" still seem to be covered.

I also have some concern for younger folks (my kids for example) who are accumulating. If this downturn is signaling a major recognition that we have been living over our heads for some time and now have to readjust, you might be seeing a more frugal RE than you had planned. Oh, if you're in your 20's with decades to go, today's lemons will be your lemonaide. But for those of you hoping to RE in 5 - 10 years and have substantial assets already accumulated, this may not be the boon you're thinking it is....... But I hope it works out OK for all!

Edit: Accumulators - before you get giddy about this buying opportunity..... look at the concurrent thread that discusses lengthly secular bear markets. If this puppy stretches out for many years, as some have done, your current "buys" won't have recovered much by the time you want to RE. And your current accumulation may not have recovered. I hope this is only a year or two or three long.... But I'm not convinced it will be that short. Hope I'm wrong.

 

[rickier55]

Well

I'm still in the 79% equities as of last Friday. No longer in accumulation though (in fact just the opposite). At this point I'll just hang on.

Rick

 

[CyclingInvestor]

50yo, retired 2 years, still 100% in individual stocks, still sleeping fine at nights. Most are still raising earnings and dividends at a pretty good clip. However, the lone semi-financial I own (GE) has basically stated no dividend increase through 2009, and has dropped earnings estimates.

 

[headingout]

I'm 50% equities. Been selling bonds and buying equities with that and new cash steadily since January, trying to get back to my target AA. With the past week's events I finally felt a certainty that the market would go lower. (Heck, the inevitable bad economic news from all this won't make its appearance for months.) So I decided to space out my investments and guard my cash for a while. Maybe that's capitulation. But I can't see buying anything but equities for a long time to come. The only question is at what pace?

 

[Spanky]

We are 50% in equity but still quite worried.

 

[FIREd]

I have never thought of myself as an overly aggressive investor. I am 34 yet I keep a pretty conservative 65% stock / 35% bonds & cash AA. I sometimes let it ride to about 70% stocks but never more than that. I feel comfortable with that AA. I am not planning on changing it.

 

[jazz4cash]

We're sleeping just fine and are even a *little* excited, since equities are essentially on sale for us. We're 95% in equities, but will probably scale that back to 85-90% or so should we decide to do some investing for current income.

..

Im having trouble understanding how your 1st and 2nd statements fit together? Are you saying you're scaling back while stocks are "on sale"?

I went to 100% cash in my emergency fund (dont ask), but Im leaving everything else alone which was 70/20/10 with 10 yrs to go. Haven't checked to see how the AA has shifted with the market swings. Never considered myself aggressive

 

[John23]

0% equities, have been for awhile. Just watching all this from the sidelines.

I subscribe to the idea that the mid to late 90's were a once in a lifetime boom, they got ridiculously overpriced, and it's going to take a long time to work off the excesses (and thus stocks become investable).

So far....the S&P has been flat for 10 years. You haven't missed much.

The risk/reward is still out of whack...nominal upside (maybe a few percent more than cash?). But automatic, 10-12% a year gains...long gone.

And the downside is still a lot. There are going to be rallies, but it's going to be 5-10-15 years of choppy markets, at least. Same cycle as 20's to early 50's, and mid 60's to early 80's. The public jumped into stocks, and it took 20-25 years to break even.

 

[old woman]

I am 100% equities and today with a 777 drop in the dow it made my stomach hurt for the first time. I don't want to sell at the bottom and don't have more to invest so just waiting and watching.

 

[mb]

I'm not at my allocation goal.
I did put $850 in the market today and 4K on fri - 3K in foreign small stocks.
I'm still averinging into the market.

What do you use for small cap foreign equities?

 

[haha]

I am actually in much better shape than I thought. In my own accounts I am down 10% from my all time post-divorce high water mark of 10/2007. About 3% of that is living expenses. I am about 90% in equities, though much of that is recenty committed. Too early to be sure, but it is hard to get it exactly right.

I think those who own good stocks at today's prices will be well rewarded.

I expect to be much richer one year from now. If capital is in short supply, firms with excess capital will do very well.

Those of you who are worried about another great depression should read JM Keynes book-I have it at my old house but I can't remember the volume# right now. He made a lot of money during the so called great depression, going long on beaten down stocks. Something is always making money. Our goal as investors is to stay solvent, invest in strong businesses, and don't respond to head-fakes.

It helps to be well enough capitalized that you can live off reasonable dividends thrown off by your stocks, rather than needing to trade them.

And if you are still working, this is a nice set-up for you.

Ha

 

[mathjak107]

0% equities, have been for awhile. Just watching all this from the sidelines.

I subscribe to the idea that the mid to late 90's were a once in a lifetime boom, they got ridiculously overpriced, and it's going to take a long time to work off the excesses (and thus stocks become investable).

So far....the S&P has been flat for 10 years. You haven't missed much.

The risk/reward is still out of whack...nominal upside (maybe a few percent more than cash?). But automatic, 10-12% a year gains...long gone.

And the downside is still a lot. There are going to be rallies, but it's going to be 5-10-15 years of choppy markets, at least. Same cycle as 20's to early 50's, and mid 60's to early 80's. The public jumped into stocks, and it took 20-25 years to break even.

although im a big believer in being well diversified and i doubt ill ever pull out i tend to think you maybe right in your prediction and while id love to give you a good argument for why you shouldnt be out i really cant argue with you. you just may be right.

 

[clifp]

80% equities and heavily invested in financial stocks. So it has been a very interesting last 12 months. I've only had one dividend cut so I'm not too concerned, still it isn't fun to see my net worth drop by my peak annual salary in a single day.

 

[Culture]

I am expecting another bloodbath today, after which i intend to move 10-15% of my portfolio from bonds into equities (currently about 50/50). I expect to retire in 5 years, and believe I be be well ahead by then. Yes, I believe that I am aggressive. I was 90/10 until about October of last year when I moved to 60/40 due to the overvalued market. Yes, this is market timing.