Anyone Buying Into Today's Dip?

[Archman]

I bought a tiny amount of QQQ, and VTI today, fully expected the market to continue down or flatten for a while.

Surprised some of my orders when though considering the jump up in the market, I'm showing a PROFIT already

Why not buy later if prices are going down? And they did go lower.

 

[Dash man]

And now the biggest lost.

Stop looking!!

 

[NW-Bound]

No, I did not buy anything. After the $300K+ put assignments last Friday, my stock AA has gone up to a bit more than 75%. I am greedy, but not that greedy, so sit tight to see what happens next.

Can't even sell any option with the market so lousy. I did have quite a few energy stocks that went up nicely today, but these guys were beaten down so badly the last few years I don't want to sell covered calls on them yet.

 

[Retch The Grate]

The sole "trading" stock I have - meaning I was getting in and out - but didn't mind having to hold is Matterport MTTR....that's a decent sized hit right now.

Fun, I got to see Matterport grow from my friend Matt making experiments with a modified xbox camera to him starting the company and it growing over the years. Was neat how when I was shopping for my first house back in 2020 that almost every listing had Matterport generated layouts, 3D models, etc.

 

[moontower]

BUY in small increments all the way down....

I'd just keep buying a little of VTI and VUG on every day that any of the major 3 indexes are down 3% or more - there just aren't that many days historically in crashes/corrections like that, if you hold for longterm (5 years plus), just seems like blood in the streets and time to buy slowly....

 

[freedom2022]

Market has been down before Fed actually raise interest rate.
The Fed plan to raise interest rate three times this year.
Some say the Fed has to raise interest rate at least four times this year.
What will happen when the Fed raise the interest rate the third time this year
and they find out it is not enough?
Printing money for more than a decade. We all know this is going to happens.
Stocks are the only game in town, so I have to buy too.

 

[Brat]

Between what the Russians are doing and the Fed's adjusting I am stepping aside. Frankly, the Russians worry me more than the Fed.

 

[statsman]

We've been investing ultra-conservatively for years, and our bond funds get trashed regardless of what the stock markets are doing now. It didn't used to be the case. Complete manipulation, and I can't do a damn thing about it and still sleep at night.

 

[kgtest]

I've had this "how bad is it 'this time'!" discussion. I figure, in order for us to see WORSE than a COVID level obilveration we would need to see a WWIII type of scenario, maybe China strikes a carrier group, a meteor hits NYC, Shanghai, Tokyo? An earthquake brakes a chunk of California off?

Certainly lots of talking heads suggesting equities at 3 to 4% annually for a while. With all corrections, this too shall pass and the markets will eventually climb to record highs. Will it be this year, next, or 5 years, nobody knows.

 

[COcheesehead]

We've been investing ultra-conservatively for years, and our bond funds get trashed regardless of what the stock markets are doing now. It didn't used to be the case. Complete manipulation, and I can't do a damn thing about it and still sleep at night.

Individual bonds will return to par, the original value. Bond funds have no par so the net asset value can go down.

 

[Gumby]

Between what the Russians are doing and the Fed's adjusting I am stepping aside. Frankly, the Russians worry me more than the Fed.

Back in the days when I was hauling nuclear missiles around under the North Atlantic, waiting to blow up the other half of the world, I comforted myself with the thought that the Russians presumably love their children as much as we do. They may be bad guys, but they are not irrational.

 

[Mr. Tightwad]

Back in the days when I was hauling nuclear missiles around under the North Atlantic, waiting to blow up the other half of the world, I comforted myself with the thought that the Russians presumably love their children as much as we do. They may be bad guys, but they are not irrational.

But are they the bad guys, or are they just portrayed as the bad guys?

 

[VanWinkle]

Individual bonds will return to par, the original value. Bond funds have no par so the net asset value can go down.

The spread on individual bonds make them more expensive to own.

The lack of diversification is no different than buying one stock only.

The bond fund re-calibrates with new bonds daily at increasing interest rates.

Individual bonds continue to pay the same low rate during rising interest rates.

"Bond losses" and "bond gains" are merely a reflection of interest rate changes.

Rates going up is a good thing for conservative investors.

Liquidity is an advantage of bond funds.

It depends on individual preferences.

Good luck to you,

VW

 

[COcheesehead]

The spread on individual bonds make them more expensive to own.

The lack of diversification is no different than buying one stock only.

The bond fund re-calibrates with new bonds daily at increasing interest rates.

Individual bonds continue to pay the same low rate during rising interest rates.

"Bond losses" and "bond gains" are merely a reflection of interest rate changes.

Rates going up is a good thing for conservative investors.

Liquidity is an advantage of bond funds.

It depends on individual preferences.

Good luck to you,

VW

Everything you need to know about an individual bond is apparent at the buy: yield to worst, yield to maturity, return, payouts, etc. Not so with a fund. It is imprecise.

A properly designed ladder mitigates interest rate risk and has diversity.

Bonds are easy to buy and sell. I have never had a liquidity issue, ever.

The recalibration you mention is exactly the issue. There is no par, no exact duration and thus in a rising rate environment as the OP mentioned, you have NAV erosion.

Most people do not understand bonds and funds appear safe and easy, but in markets like we have today, you can see the risk of a bond fund.

 

[VanWinkle]

Everything you need to know about an individual bond is apparent at the buy: yield to worst, yield to maturity, return, payouts, etc. Not so with a fund. It is imprecise.

A properly designed ladder mitigates interest rate risk and has diversity.

Bonds are easy to buy and sell. I have never had a liquidity issue, ever.

The recalibration you mention is exactly the issue. There is no par, no exact duration and thus in a rising rate environment as the OP mentioned, you have NAV erosion.

Most people do not understand bonds and funds appear safe and easy, but in markets like we have today, you can see the risk of a bond fund.

In a rising interest rate environment, are you able to sell your bond prior to maturity for par value?

VW

 

[COcheesehead]

In a rising interest rate environment, are you able to sell your bond prior to maturity for par value?

VW

If you have a ladder, you have no reason to sell prior to maturity because you should have other bonds that are maturing at par, the original value, on a regular basis. I have bonds that mature almost monthly that I can then reinvest, use for expenses or to rebalance.

I also buy muni’s so everything is tax free if held to maturity and very safe.

 

[ktdtx]

<<<I comforted myself with the thought that the Russians presumably love their children as much as we do. They may be bad guys, but they are not irrational.>>>


The problem is we are not dealing with the average Russian, we are dealing with their politicians who might be and probably are every bit as bad as ours.

 

[Fermion]

<<<I comforted myself with the thought that the Russians presumably love their children as much as we do. They may be bad guys, but they are not irrational.>>>


The problem is we are not dealing with the average Russian, we are dealing with their politicians who might be and probably are every bit as bad as ours.

I don't know how much power Putin has, but he has acted strange in the past, with his shirtless photos of him wrestling a lion or whatever. He is ex KGB, and perhaps doesn't have the same level of love for children as he might have love of the golden age of the USSR. If he has a lot of power over missiles, things could get a bit ugly.

 

[Gumby]

But are they the bad guys, or are they just portrayed as the bad guys?

Oh, I'm sure they're not bad guys. I always felt I had more in common with the Russian sailors on the ships that were hunting me than I did with some of my countrymen. Neither one of us wanted to fight the other. In fact, we both wanted the same thing - to go home, chase our wife around the kitchen table, maybe catch her every once in a while, raise some kids and live peacefully. It was only the old guys in Washington and Moscow (and rich people who would never have to fight in any war but made plenty of money off preparations for one) who were rattling the saber.

 

[Beststash]

^^^^^^ And that is the real story

 

[MichealKnight]

MTTR

Fun, I got to see Matterport grow from my friend Matt making experiments with a modified xbox camera to him starting the company and it growing over the years. Was neat how when I was shopping for my first house back in 2020 that almost every listing had Matterport generated layouts, 3D models, etc.

Due to flood, insurance paid to re-do my entire basement. (Thank you rainstorm!). Anyhow the fella who comes out to do the entire estimate - I heard him on the phone saying "yeah, I matter-ported it" and I heard him say it multiple times. Afterwards I asked him about and he said its widespread and normal. Hence - I chose MTTR for my speculation.

 

[Bigdawg]

Oh, I'm sure they're not bad guys. I always felt I had more in common with the Russian sailors on the ships that were hunting me than I did with some of my countrymen. Neither one of us wanted to fight the other. In fact, we both wanted the same thing - to go home, chase our wife around the kitchen table, maybe catch her every once in a while, raise some kids and live peacefully. It was only the old guys in Washington and Moscow (and rich people who would never have to fight in any war but made plenty of money off preparations for one) who were rattling the saber.

Politics? Really Gumby? You have warned many posters on here for far less than this.

 

[ExFlyBoy5]

Oh, I'm sure they're not bad guys. I always felt I had more in common with the Russian sailors on the ships that were hunting me than I did with some of my countrymen. Neither one of us wanted to fight the other. In fact, we both wanted the same thing - to go home, chase our wife around the kitchen table, maybe catch her every once in a while, raise some kids and live peacefully. It was only the old guys in Washington and Moscow (and rich people who would never have to fight in any war but made plenty of money off preparations for one) who were rattling the saber.

Exactly right. I have had the occasion to meet/talk to some Russian flight crews and we all got along great (even with a slight language barrier). They were a little jealous of our crew rest facilities of our airplane compared to theirs, but all seems genuinely friendly...especially when we traded adult beverages.

 

[Gumby]

Politics? Really Gumby? You have warned many posters on here for far less than this.

I believe the word you are looking for is "partisan" politics. That's what the rule is. But you are free to use that little red triangle to report my post, where it can be reviewed by the other moderators.

 

[Mr. Tightwad]

Oh, I'm sure they're not bad guys. I always felt I had more in common with the Russian sailors on the ships that were hunting me than I did with some of my countrymen. Neither one of us wanted to fight the other. In fact, we both wanted the same thing - to go home, chase our wife around the kitchen table, maybe catch her every once in a while, raise some kids and live peacefully. It was only the old guys in Washington and Moscow (and rich people who would never have to fight in any war but made plenty of money off preparations for one) who were rattling the saber.

I concur.