Anyone else having panic attacks about the market?

[haha]

Quote:

Originally Posted by Mwsinron I am invested for the rest of my life. So since I dont short anything why should I get worked up over a small dip like this. Obviously if we have a super duper 50 percent drop I suspect we all have more worries than our money

One might think so, but it would not necessarily be true. Major indices dropped by that or more in '73-'74 but corporate sales and profits continued upward. There was relatively high unemployment, but not proportional to the stock market drop.

So we had better find some other nostrum to comfort the fears.

Ha

[Cut-Throat]

Quote:

Originally Posted by HaHa One might think so, but it would not necessarily be true. Major indices dropped by that or more in '73-'74 but corporate sales and profits continued upward. There was relatively high unemployment, but not proportional to the stock market drop. So we had better find some other nostrum to comfort the fears. Ha

I think Ha is correct on this. I think that if anyone was 'worried' about the market after this little 2-3% selloff needs to read or re-read 4 pillars of investing.

I think anyone that is investing in stocks better plan on a 50% drop within the next 20 years. So when it happens, you won't do something stupid. It might happen next year or it might happen after another 15,000 point run-up of the Dow, but it probably will happen.

Invest accordingly.

[bobbee25]

Diversify - to what, seems when the market goes down diversity only around the amount of loss, 2% on one, 20% on another .... no offset.

For the long term - if you loose a lot and it will probably come back in 15 or 20 years, how do you sleep during the interm with a big chunk gone. Just keep saying to yourself it should come back one of these years.

[Cut-Throat]

Quote:

Originally Posted by bobbee25 Diversify - to what, seems when the market goes down diversity only around the amount of loss, 2% on one, 20% on another .... no offset. For the long term - if you loose a lot and it will probably come back in 15 or 20 years, how do you sleep during the interm with a big chunk gone. Just keep saying to yourself it should come back one of these years.

Here is the deal. If you are still working, it's a good deal for you - You are now buying stocks at a discount! - You'll be in even better shape when you retire!

If you are already retired, you ran FireCalc and based upon the worst case conditions you are Okay! - The market only dropped 50% - That is not the worst case, so you are in great shape. The P/E ratios have dropped and when you rebalance the next time, you'll be getting those stocks at bargain prices - Still a good deal! If you don't rebalance and buy these stocks, you'll be screwed!

Waiting 15 or 20 years would be normal. Get used to it.

If you don't understand these fundamentals, you'll probably do something stupid!

Again - The market will drop - It's not IF it's WHEN!

[Meadbh]

In a word, NYL, no.