DOW drops 5000

[73ss454]

OK guys it's been a year today since the all time DOW high of just over 14100.

I retired last year and living off my port., losing 5000 pts. is making me ill.

Gotta get that AARP senior job site.

 

[Martha]

Yeah, I feel a bit sick to my stomach too.

 

[haha]

Yeah, I feel a bit sick to my stomach too.

I recommend Pepto-Bismol.

And on the good side, only 2 more gut wrenching opportunities before the Friday close is in. From there we can look ahead to a whole alcohol enhanced weekend before having to face this again next Monday.

Ha

 

[toofrugalformycat]

I'm pretending this is all an episode of The Twilight Zone.

 

[Sarah in SC]

Thanks Ha, for reminding me that I'm spending the weekend with DH's teetotaler mother! I'll be hiding a flask in the bathroom (I'll swear it is mouthwash)!

 

[REWahoo]

And on the good side, only 2 more gut wrenching opportunities before the Friday close is in. From there we can look ahead to a whole alcohol enhanced weekend before having to face this again next Monday.

One of the many advantages of retirement is you don't have to wait until the weekend to be alcohol enhanced. Just ask Dawg54...

 

[audreyh1]

The only thing that reminds me it's the weekend is the stock markets aren't open. I guess haha doesn't drink while the markets are open?

Audrey

 

[huskerblue]

Perhaps we should rename the site "Ever? Retirement Forums".

 

[W2R]

Monday is a federal holiday (Columbus Day). The NYSE may not be open on that day.

As for me, I am a teetotaler and don't drink. Instead, I eat. Frank is the same. There is always my favorite restaurant in the entire universe - - a Sicilian place that I only dare go to once a year. Maybe we'll go there this weekend.

 

[bright eyed]

What is the record for points dropped in a year?

 

[dex]

I'm not updating my mutual funds prices until 12/31

 

[audreyh1]

I'm not updating my mutual funds prices until 12/31

Good one!

Just don't forget to take into account mutual fund distributions, otherwise you'll be more depressed .

Audrey

 

[ziggy29]

What is the record for points dropped in a year?

I'm sure this is it, and by a fair margin, with 2002 probably being second.

But to make it realistic it has to be in percentage terms. I think this is already something like the #5 or #6 worst year the Dow has ever had in terms of a percentage drop.

At least we probably won't catch 1931 for the top spot.

 

[haha]

The only thing that reminds me it's the weekend is the stock markets aren't open. I guess haha doesn't drink while the markets are open?

Audrey

True. After years of retirement I still like to keep weekends special. I know this is different from many around here. I also wear a watch, use an online calendar and day planner, shave daily, etc..

Ha

 

[bright eyed]

I'm sure this is it, and by a fair margin, with 2002 probably being second.

But to make it realistic it has to be in percentage terms. I think this is already something like the #5 or #6 worst year the Dow has ever had in terms of a percentage drop.

At least we probably won't catch 1931 for the top spot.

thanks for the info, the knowledge of folks on the board is always appreciated!

 

[FIREd]

True. After years of retirement I still like to keep weekends special. I know this is different from many around here. I also wear a watch, use an online calendar and day planner, shave daily, etc..

Ha

Caramba! I am not even retired and yet I don't wear a watch, I don't use a calendar or day planner (it's all in my head), and I certainly don't shave daily! Ha, your retirement sounds like work to me!

 

[youbet]

Thanks Ha, for reminding me that I'm spending the weekend with DH's teetotaler mother! I'll be hiding a flask in the bathroom (I'll swear it is mouthwash)!

A Lavoris bottle filled with PGA (pure grain alcohol) and a few drops of red food coloring works fine.

Been there, done that......

 

[bbbamI]

A Lavoris bottle filled with PGA (pure grain alcohol) and a few drops of red food coloring works fine.

Been there, done that......

Wow, thanks for the tip! However, I must say the last time I had PGA I couldn't see or breathe for a few seconds.

These daze that scenario sounds tempting.....

 

[youbet]

I'm not updating my mutual funds prices until 12/31

I updated my net worth graph last night....... It goes back for almost 5 years and until last November my net worth was growing despite being retired. I liked that. As of last night, net worth has retrogressed back to early 2006 levels. And that's without any inflation correction which would make it worse.

I also printed out a graph of the price of VTI. Wow! The shape of my net worth graph and the share price of VTI graph have the same shape! Guess I shouldn't be surprised as my portfolio is dominated by VTI, or equivalent, holdings and other holdings have been much more correlated than I was expecting.

Our RE spending is pegged to about 50% pension and 50% investment income. Kind of a hybred between the folks with the generous cola'd pensions and those doing it 100% off investments and SS. I've established a plan where we continue to survive OK even with significant and permanent depression of our portfolio, so no panic. Still, it's darn depressing We could take a pricey international vacation once a quarter for several years on the money that's evaporated so far....... Oh well......

 

[tgotch]

What is the record for points dropped in a year?

Couldn't find anything on points, but here are the worst 5 years in terms of % loss:

1931 -52.67%
1907 -37.73%
1930 -33.77%
1920 -32.90%
1937 -32.82%

 

[ziggy29]

Couldn't find anything on points, but here are the worst 5 years in terms of % loss:

1931 -52.67%
1907 -37.73%
1930 -33.77%
1920 -32.90%
1937 -32.82%

The Dow is -31.26% YTD as I write this.

I like our chances to take out all except 1931.

 

[Hamlet]

I'll go out on a limb and guess that we will end the year higher than we are now. My number for Dec 31st, 2008--

10,119

Yah heard it here first.

The Dow is -31.26% YTD as I write this.

I like our chances to take out all except 1931.

 

[FIREd]

I updated my net worth graph last night....... It goes back for almost 5 years and until last November my net worth was growing despite being retired. I liked that. As of last night, net worth has retrogressed back to early 2006 levels. And that's without any inflation correction which would make it worse.

I will be updating my net worth graph on October 15 (just as I have updated that graph on the 15th of each month since 2001). My net worth has been pretty much flat for the past year (new savings having compensated for the losses in the stock market), but this month I expect to see a huge drop (-11% from Sept. 15, 2008 so far!!!) that might send my net worth back to where it is was in early 2007... From the high water mark of May 15, 2008, it would be a 16% drop.

 

[haha]

The Dow is -31.26% YTD as I write this.

I like our chances to take out all except 1931.

I don't think that YTD fugures are of much significance. What gives insight is drawdown from prior higher high.

Depending on the index you are using, that would be sometime last October. Or if you have daily figures from your own accounts they can be helpful, especially if you make a ratio between your experience and the index. Most of us who are living off a portfolio hit our highs sometime last October.

Ha

 

[shotgunner]

Wow I have all the luck

Three of those years were in the depression and it seems we could finish the year with the largest % drop in the last 71 years. Given this an early retirement board I am guessing this is the worst drop in the life of all of us. I started my E/R this year which turned into a semi-retirement by choice 3 weeks later. Historically I have pretty bad luck but I didn't think I could single handedly upend Wall Street and U.S economy!