Anyone else having panic attacks about the market?

[brewer12345]

i am taking a long term view with my actions, but can't help but panic mentally. i am much younger than most of you and though i am in this for the long haul, i haven't dealt with this before as much of my money was tied up in real estate before. had to get out of that for various personal and practical reasons, so i am trying my best to deal with this downturn, but my mind keeps on wandering to all sorts of doomsday scenarios. i think that once you make a substantial amount of money then there is the fear of losing that money. i think i need to toughen up psychologically more than anything.

Its simple: don't look.

Seriously, your time horizon is measured in decades, so why do you even bother looking at your investments on a day to day basis? Who cares about the price of tea in China?

Look once a month. You'll be happier and your portfolio wll do fine over time.

 

[Lusitan]

i am much younger than most of you and though i am in this for the long haul, i haven't dealt with this before as much of my money was tied up in real estate before.

It's tough when we realize that extraordinary gains that we've benefitted from in the last bull market in <insert real estate / equities / or your bubble of choice here> aren't due to our own genius or hard work, but mostly due to luck at being invested when the bubble started.

I'm also fairly young even for a RE board, but having been through the last market meltdown I have learned to take it all in stride. Easy come, easy go. But I have faith that with a diversified portfolio and realistic expectations, I'll weather the storm.

Just don't make any sudden knee-jerk changes in response to the market; stick with your plan.

 

[JustCurious]

I'm hoping the market drops some more. I want a nice deep drop so than I can pick up more shares at lower prices.

 

[Mysto]

I would, but then your head would explode.

Come on DO IT!

Watch out for falling b3aver cheese

 

[runchman]

43, nearly 100% equities. I track my net worth on a monthly basis - the recent market drops pop me back what, maybe 3 or 4 months.

Big deal, doesn't faze me in the least.

If you have the mentality that your account balance should always be growing, well then you better move into CD's !

- John

 

[TromboneAl]

the combination of wonderful spring weather, a very boring stretch at w*rk, and watching the pot decrease, however expected and understood, is disheartening.

Right, it will seem much worse if you run out of pot.

this is where the Financial Advisor you are paying good money should be earning his pay. Ask him to buy a cup of coffee, hold your hands and look into your eyes and repeat: it's ok. everything will be fine.

Unfortunately, the planner will probably hold your hands, look into your eyes and say "It's time to get you into some whole life insurance and put some annuities in your IRA."

 

[ERD50]

i am taking a long term view with my actions, but can't help but panic mentally
......
i think i need to toughen up psychologically more than anything.

Does this help? :

- despite the 22% drop in the market on 'Black Monday' in October 1987, if you just HELD the market for all of 1987, you would have a 2.3% GAIN.

So, not a great year for the buy & hold investor, but a 2.3% gain is certainly nothing to 'panic' about.

-ERD50

 

[laurence]

Just because it has to go into the IRA by April 15 does not mean it has to go into the market by then. (Not that I would wait, and I'm a small fish, too.)

EXCELLENT point. However when all is said and done I'm too chicken to play that game. We burned all our market timing karma when DW excercised and sold all her options to buy the house and a day later her company announced litigation and the stock price plummeted. I'll just keep telling myself we are way ahead and plunk the money in as soon as I get it.

 

[calmloki]

Right, it will seem much worse if you run out of pot.....

Freewheelin' Franklin: "We've got plenty of grass, and as we all know, dope will get you through times of no money better than money will get you through times of no dope".

Sage investment advice on commodities and the laid back approach.

 

[elroy]

Still accumulating and love a sale!. Haven't we been through this the last few years?. Seems like a late winter early spring sell off of 5 - 10% from highs in January is a pattern. But I really dont pay that much attention maybe someone who trades frequently can comment.

Elroy

 

[Spanky]

I am 40/60 (equity/fixed income) now, thinking about moving to 60/40. Thus, the current market condition may be a catalyst.

 

[yakers]

Most of the responses on this thread indicate a difference between those who are retired and those still working. I am still working, probably another 8 to 16 months. So I am still in the accumulation phase and so a market decline is a buying opportunity. For those who are living off their nest egg (I will have a real COLAd pension) I would expect some distress. And, yes, buy & hold is good and time in the market is good. And if the market resolves quickly all will be well. So I am glad that NYL and others can come to a place like this and express their worries and receive good advice.

 

[Sam]

I am 40/60 (equity/fixed income) now, thinking about moving to 60/40. Thus, the current market condition may be a catalyst.

Perfect timing.

 

[haha]

So I am glad that NYL and others can come to a place like this and express their worries and receive good advice.

Well, it's advice anyway.

Ha

 

[youbet]

Just wondering.....

For all you folks ready to purchase bargains, how much cash are you holding? Are your bargain purchases relatively small percentages compared to your total net worth and driven primarily by current savings levels? Or do you keep a high percentage of cash, beyond your emergency fund, as dry powder waiting for this kind of "opportunity?"

It always seems a little strange that so many seem to have huge amounts of cash available to purchase equities during corrections, but few comment on carrying huge amounts of cash through equity high return years. That is, lots of comments about buying bargains now. Few comments about holding huge cash positions earning 5% - 6% during a year the equity markets earned several times that.

 

[justin]

Just wondering.....

For all you folks ready to purchase bargains, how much cash are you holding?

Zero. But I have an income stream from working that gets pumped into the market each month at a rate of $5000/month approximately. A few years of down markets would allow me to buy in at some attractive prices.

 

[Running_Man]

NYL, I do understand where you are comming from.
What is realistically the worse doomsday scenario? Perhaps it is a repeat of the great depresion? Even that shouldn't cause you any fear as you have plenty of time on your side.

The speed which the market is moving can be scary. However, buying low is as important as selling high (as someone mentioned earlier). So if you can buy now, that is the best thing to do.

The last thing you want to do is buy high and sell low. Selling now would be selling low.

The only reason I would panick is if you had your entire portfolio in one stock. And even then, this would be a good time to diversify 8)

Selling 5% off an all time high would not be selling low. Looking at the chart of Bank of America I do not see how this is the lowest or cheapest in years - it is nearly an all-time high.

http://finance.yahoo.com/charts#chart3:symbol=bac;range=my;indicator=volume;charttype=line;crosshair=on;logscale=on;source=undefined

 

[lswswein]

Just wondering.....

For all you folks ready to purchase bargains, how much cash are you holding? Are your bargain purchases relatively small percentages compared to your total net worth and driven primarily by current savings levels? Or do you keep a high percentage of cash, beyond your emergency fund, as dry powder waiting for this kind of "opportunity?"

It always seems a little strange that so many seem to have huge amounts of cash available to purchase equities during corrections, but few comment on carrying huge amounts of cash through equity high return years. That is, lots of comments about buying bargains now. Few comments about holding huge cash positions earning 5% - 6% during a year the equity markets earned several times that.

As far as I am concerned, I am moving from Short Term Bond Index to Equities. I hold between 15-20% in STBonds and Tips combined. Every 10%+ drop in equities I moved a maximum of 5% bonds into equities. Also I am working so making monthly contributions.

-h

 

[brewer12345]

I didn't like what I saw earlier in the year, so I held cash and slowly bought stuff. I also hold a big slug of ISM and OSM that I will liquidate and deploy if stuff gets cheap enough. I also buy longer dated, out of the money call options in size when volatile stuff gets smacked down hard and still has decent fundamentals.

 

[d]

Big tax return = putting $4,000 into the market in the next few weeks. The only problem is the IRA needs to be funded by April 15 and the bleeding might not be done by then! I know, $4k is nothing for some of you big fish, but it's almost 4% of my portfolio!

... put it in an IRA MM now, then switch whenever you want, to wherever you want.

 

[JustCurious]

Zero. But I have an income stream from working that gets pumped into the market each month at a rate of $5000/month approximately. A few years of down markets would allow me to buy in at some attractive prices.

My answer is the same (but the numbers are a bit smaller )

 

[eridanus]

Just wondering.....

For all you folks ready to purchase bargains, how much cash are you holding? Are your bargain purchases relatively small percentages compared to your total net worth and driven primarily by current savings levels? Or do you keep a high percentage of cash, beyond your emergency fund, as dry powder waiting for this kind of "opportunity?"

I've been saving up to purchase another fund in my 401k, so I have some cash ready in my account. It's also tax season, when I pull out all the stops to put in the maximum self-employed contribution.

 

[FinanceDude]

Unfortunately, the planner will probably hold your hands, look into your eyes and say "It's time to get you into some whole life insurance and put some annuities in your IRA."

Sounds like personal experience...........

 

[donheff]

It is interesting to read all of these buy now calls. If you are a timer (and some of my best friends are) I guess it seems like an opportunity. But we could have another 5% drop - or 10%. And, maybe the bears are right and we will have a prolonged down market. I am keeping a few years cash for expenses in a bear and I would be reluctant to use it to speculate on this adjustment. If my bonds were already at the allocation I am moving toward and shifted due to this change I would certainly look for a good point to re-balance into equities, but even with that, do you just speculate that this is a good time for that or do you stay on a fixed schedule?

 

[teejayevans]

Vanguard founder John Bogle was on NPR last night, he laughed at the
thought of chasing the market, his comment; it's just noise. He seem to
have a lot of integrity, something lacking in many of today's overprice
CEOs
Tom