So how is YOUR stomach this week?

[Ed_The_Gypsy]

THIS is why I am 50/50 US/foreign.

Actually, I was in hospital with appendicitis the week of the crash, so my corporeal stomach is rather unsettled, but my financial stomach is quite calm.

I did my research years ago and picked asset classes that I am comfortable with for the long run (mostly index funds). I rebalance every year or so. I pretty much ignore wild rides like this. (I did add a few grand to the Vanguard Energy Index this week. Too cheap to pass up. ) I am only concerned with ten-year stretches, but I am starting to build a 5-year CD ladder. If I retire in 5 years, OK. If I continue to work, I just buy another CD.

You, too, can sleep well:
1) Choose asset classes as uncorrelated as you can that pay. (There are many uncorrelated asset classes that don't pay well in the long run.)
2) Fund them in reasonable proportions.
3) Rebalance every year or two.
4) Expect downturns that may last as long as 5 or 10 years.

You don't lose money until you sell. I am down a fair amount, but I haven't lost a cent. I am still way ahead of where I was 6 years ago. I expect my poke to recover and more.

Don't panic.

Gypsy,
with a positive report on Alberta Health Care's emergency service.

 

[REWahoo]

Ed, glad to hear everything came out all right.

 

[Ed_The_Gypsy]

Thanks, REW. All systems go.

I have pictures.... I think they used a shovel.

Now, when is there going to be a neck-tie party on Wall Street? Just because I am unfazed doesn't mean I don't want blood.

 

[CuppaJoe]

Glad to hear that emergency services came through for you; and equally good to hear a positive attitude about AA.

 

[W2R]

Wow! What an awful experience. At least you probably missed all the panic and such.

I am not feeling a lot of panic, though I do wish the market would settle out and start gaining steadily some day.

You are sensible to say that you haven't lost until you sell. But still, it seemed like it took a long time for people to recover their losses from the tech stock fiasco a few years back, and catch up with inflation.

 

[cute fuzzy bunny]

Somewhat plump.

 

[tuixiu]

Appendicitis is the standard thing I think of whenever I read something about someone who lives on some remote island that can only be traveled to by boat.

Good to hear it worked out ok... now let's get those tonsils scheduled.

 

[Spanky]

Ed,

Hope that the recovery be quick without any complication.

As W2R says, I too hope for market recovery soon.

Spanky

 

[FIREd]

My stomach had been aching for the past year. As it turns out, it wasn't because of the market! It was gastritis. But now that I am on meds, things are a lot better!

I have been pretty "happy" with the performance of my low correlation portfolio over the past year, it has held up pretty well. I keep investing money on a regular basis, as usual. Not panicking... yet.

But I was wondering, how did a 50/50 US/foreign allocation help you? Didn't the foreign markets drag your returns down? It sure dragged mine down...

 

[Ed_The_Gypsy]

FIREdreamer,

50/50 sagged, too. It is just a matter of personal policy that I split it up this way. It is on autopilot and I am not going to analyze it just now. I am too busy at the moment. More later.

Glad you got good meds. A fat portfolio isn't any good if'n you is dead.

tiuxiu,

Yeah, now I can go live on that little rock in the San Juans! The tonsils are long gone (50+ years now).

The idea of being in the middle of nowhere with the onset of a serious health problem has been something I have had in the back of my mind for years. I have been taking that into account in my retirement location musings. It changes the way I look at things.

Cheers to all.

Gypsy

 

[harley]

Now, when is there going to be a neck-tie party on Wall Street? Just because I am unfazed doesn't mean I don't want blood.

I agree. It's time for the peasants to break out the pitchforks and torches. "A riot is an ungly thing... . undt, I tink, that it is chust about time ve had vun."

 

[Ed_The_Gypsy]

W2R,

My pot survived the tech crash very well. Slice-and-dice index funds helped a lot. This downdraft hit me harder, but I am still way ahead of where I was 6 years ago.

I got bit with a tech stock in the very early days of personal computers (~1975). A cheap lesson. I learned that I had no business buying individual stocks, particularly ones without cash flow or earnings.

I hope things go well down there south of the border. Business is good for me up here. There are so many exciting things coming my way. Opportunities are everywhere up here in Alberta. I am having way too much fun.

Cheers,

G

 

[Helen]

W2R,

I got bit with a tech stock in the very early days of personal computers (~1975). A cheap lesson. I learned that I had no business buying individual stocks, particularly ones without cash flow or earnings.

I'm happy for you that you learned your lesson early. I learned mine during the tech crash and lost quite a bit.

I was sitting with a 60/40 portfolio before this meltdown. I'm putting all new money into stocks.