Down Day in the Market !

[NW-Bound]

Darn! Another down day in the stock market! Why didn’t I buy Bitcoin a month ago like the smart money did?

Oh yeah! I was about to say the same thing.

Lemme see... Bitcoin was up as high as $20,000, now below $8,000.

Are you sure it was "smart money" buying bitcoins?

On the Web, some headlines say bitcoin has hit bottom. Can only go up from here. Buy, buy, buy!

 

[NW-Bound]

The talking heads say that today's drop was due to fears of higher interest rates, and perhaps they are right...

Employment number came out today was good, and above expectation. More than that, salary increase was close to 3% year-over-year.

If that does not drive up inflation and the interest rate, what would?

 

[Bigdawg]

wasn't going to do anything if it went up (except my usual monthly 401K add) and I wasn't going to do anything if if went down. Still fun to watch the crowds go crazy.

 

[target2019]

The Black Swan preens in still waters...

 

[mystang52]

My asset mix has rewarded me in a sense. My total portfolio went down, of course, but it was barely a blip. That's why I'm content and sleep at night.

 

[Major Tom]

A 6-figure "loss", just like that. Easy come, easy go.

As you say, it's a "loss" and not a loss, so all is good.

I think someone else might have mentioned or alluded to this, but it occurred to me that if this turns into an actual correction, it will negate the need to re-balance. I reached a point about 10% above my target allocation of 60% equities recently, so a sharp downward move in the market will bring me a little closer to my desired 60/40 AA (well, 60/37/3 if we're being more accurate).

It's possible to see a positive side to almost anything

 

[Marita40]

Besides rebalancing once a year, I do two things with my investments: look or don't look.Today is a no-look day.
That's it. Onward!

 

[gayl]

I'm still waiting for the "Markets May Have Had a Bad Week But They Are Still Up Over 3% YTD So Why Is Everyone Panicking? Settle Down People!" headline.

 

[VanWinkle]

"Not trying to start a political discussion here at all."

Wish I had a dollar for every time I heard/saw that one!!

 

[VanWinkle]

Besides rebalancing once a year, I do two things with my investments: look or don't look.Today is a no-look day.
That's it. Onward!

+1

 

[RenoJay]

I sold about 1.5 years living expenses last week. Feeling decent about that. The headline I saw today that cracked me up was something like “Dow drops more than on Black Monday.” I hope here no one needs an explanation of why such a comparison is ridiculous.

 

[CRLLS]

I expect it will continue on Monday.

Maybe, Maybe not. The weekend may have a cooling down effect, somewhat like when they intentionally halt trading for a bit.

I actually felt it was about time for a small hiccup. I just hope it is not the harbinger of a more serious issue. Either way, I am here for the long haul, Even at age 65.

 

[gayl]

Yeah well it isn't a loss unless you need to sell. I see a buying opportunity

 

[NW-Bound]

... I think someone else might have mentioned or alluded to this, but it occurred to me that if this turns into an actual correction, it will negate the need to re-balance. I reached a point about 10% above my target allocation of 60% equities recently, so a sharp downward move in the market will bring me a little closer to my desired 60/40 AA (well, 60/37/3 if we're being more accurate).

It's possible to see a positive side to almost anything

I usually run a high stock AA of 70-80%. Recently, the covered calls getting in-the-money caused me to sell some stocks, and it's down to 60%. I have been selling put options the last couple of weeks, and if the market drags lower, it will cause me to have to buy stocks and drive the stock AA backup.

Will see if I will regret having to buy, instead of keeping the cash.

 

[harllee]

I had rebalanced several times this past year and took ALOT of gains and put it in cash (already had quite a bit of cash, just added to it). I did not have enough cash when the market crashed in 2008 and I did not sleep well at night. Now I have plenty of cash and no matter what happens to the market I think I will sleep well.

 

[jim584672]

The 10 year jumped up and the market got hit. How will the market fare if the 10 year goes to 3.5%? Lots of supply with reverse QE in the pipe. Fun times.

 

[RAE]

"Not trying to start a political discussion here at all."

Wish I had a dollar for every time I heard/saw that one!!

I think the comment is a bit unfair in this case. I didn't express a political opinion............all I said was that I thought certain political events might roil the markets in the near future. If you disagree or don't care, that's fine with me.

 

[Car-Guy]

6 figure buy today and another on Monday and Tuesday if it drops again.

 

[marko]

My 7% year plan had me ahead to August last week. Now I'm only ahead to April. I think I'll survive!
I think the rapid recovery to so-called Great Recession has allowed a lot of people to not take these dips so seriously.

 

[CRLLS]

I'm prepped for a 6 figure buy too. I am in the middle of changing horses and the timing couldn't be better (this time).

 

[RobLJ]

How long has it been since we saw a 5-10% correction? (of course corrections sometimes turn into bears.)

 

[StuckinCT]

I’ve experienced a $250k give back and expecting at least another $250k before this correction, if you can call it that, runs its course. But I still feel confident that this is a mean reversion from a very over bought level as others have suggested.

 

[Closet_Gamer]

A couple of months ago I was considering buying a sports car.

As I lined up my series of rationalizations on why I BADLY needed a fast, totally impractical car, one of my considerations was "the stock market is way up. I could lose this much in a single bad day."

So I took about one month's worth of monthly investing cash and bought a car instead.

Today I lost almost EXACTLY what the car cost.

Of course, even with this dip, the market is up since I bought the car. So I would still have more money if I had bought the market instead of the car...

... but that interferes with all my complex rationalizations...

... and I really like the car

 

[sirsavesalot]

... and I really like the car

Being a car guy, I need to know what you bought!

I have a 2009 Pontiac Solstice with over 400 WHP that I only put 600 miles on last year. Living in Ohio and having kids makes it very difficult to get it out. The good news is, my parents are moving to Arizona in 3 months and I'm secretly giving it to my Dad. He worked 47 long years and doesn't like spending money, but he won't have a choice in the matter

 

[zedd]

I sold about 1.5 years living expenses last week. Feeling decent about that. The headline I saw today that cracked me up was something like “Dow drops more than on Black Monday.” I hope here no one needs an explanation of why such a comparison is ridiculous.

Same here. No magic involved on my part. Just wanted to have the cash available when I needed it.