January was a real kick in the teeth!

[Earl E Retyre]

In 2008, I lost hundreds of thousands of dollars, panicked and sold all equities and got completely out of the market. It took me years to feel comfortable enough to get back in. Obviously, selling was a mistake.

Interestingly, this go around I am not panicked at all. And, I am even buying as the market goes down. The difference is:
(a) I read and learned a lot from this forum
(b) I am in Index funds and not individual stocks
(c) I have my portfolio balanced to a level I feel comfortable with. While my % of equities is lower than what I believe most people have on this forum - I learned my own risk tolerance. And now the market downturn does not make me panic.

 

[nash031]

I've still been adding, including some in January and February. I have to say it takes some nerves of steel to do so.

This is exactly why putting it on autopilot every month makes so much sense to me. We invest every month on the 1st and 15th. It takes no nerve whatsoever!

 

[W2R]

W2R, can't wait until I see your WHEEEEE post again

What, cashing out a big chunk of my portfolio to buy my dream home in cash last May was not enough? I'm sure I must have said it at some point, but just in case I didn't then let me say it in retrospect: "WHEEE!!!"

I don't feel very Wheee-ish (Wheee-like?) right now, though, with the market being so wonky.

 

[W2R]

In 2008, I lost hundreds of thousands of dollars, panicked and sold all equities and got completely out of the market. It took me years to feel comfortable enough to get back in. Obviously, selling was a mistake.

Interestingly, this go around I am not panicked at all. And, I am even buying as the market goes down. The difference is:
(a) I read and learned a lot from this forum
(b) I am in Index funds and not individual stocks
(c) I have my portfolio balanced to a level I feel comfortable with. While my % of equities is lower than what I believe most people have on this forum - I learned my own risk tolerance. And now the market downturn does not make me panic.

That is a heart-breaker. The upside of it is that it is extremely unlikely that you would ever forget and do that again. And good for you to not panic! Even if you do, the emotion is one thing and acting on it is another.

 

[Corporateburnout]

In such a case, you should only need one of each.

What if the first gun jams wouldn't I need more bullets to load the second

 

[Dd852]

Stepped back in today - sold some short term bond fund VBIRX and bought VIG - the dividend stock fund. I figure a 2.49% yield on VIG is not bad as a defensive play, especially as I don't think a recession is coming (i.e. dividends probably won't come tumbling down). My current allocation is: 53% pure stock funds, 5% REIT fund, 37% bond funds 5% cash (also part of my very conservative defensive play). Cash and bonds together = 10.8 years of expenses.....

 

[Chuckanut]

Having lived through two 40%+ declines, all I can say is that 'You ain't seen nothing yet."

 

[Mulligan]

Having lived through two 40%+ declines, all I can say is that 'You ain't seen nothing yet."

I looked at a historical PE chart and this market isn't close to being a bargain, in fact it is still rather high. Im sure pitiful bond yields are providing some price support though. I need 10% more down before I go back in. Of course if it does drop 10%, I will wait for 15% and miss the train pulling away from the station.


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[VFK57]

I also lost a lot but relatively sure that the Bear Market just started. It could go much lower than 10%. The Market indicates that we are sliding into Recession while the Feds telling us that we are OK but the rest of the World is not. Anyway my plans to add more to my individual stocks holdings is on hold for now while losses continue to mount.

 

[Mulligan]

I also lost a lot but relatively sure that the Bear Market just started. It could go much lower than 10%. The Market indicates that we are sliding into Recession while the Feds telling us that we are OK but the rest of the World is not. Anyway my plans to add more to my individual stocks holdings is on hold for now while losses continue to mount.

Sentiment sure is negative. I just looked at my accounts, thought I had about 10% in Total Stock, but it is actually around 6%. Would like a quick blow off so I could put 25% or so in some common equity funds. But being brave enough to actually do it while having avoided all the carnage the past year makes it hard to reenter.


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[Daniel J]

I held my nose and bought bond funds steadily in 2013 and 2014 to keep my allocation where it needed to be.

Since August 2015 I have held my nose and bought stock funds, mostly international, to keep my allocation where it needed to be.

Hasn't been easy though.


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[Amethyst]

For what? To kill yourself? or to rob banks?

I guess I don't "get" the guns-and-bullets reference.

I If they go to $0, I have guns and bullets.

 

[splitwdw]

For what? To kill yourself? or to rob banks?

I guess I don't "get" the guns-and-bullets reference.

If I had individual stocks, I would be more worried. I am down about the same as you, maybe a bit more, although I am still in the buying mode. I purchase the same ~11K a month, sometimes slightly more.

Individual stocks can go to $0, no matter how big the company is. Indexes likely not. It is probably NOT different this time.

IVV, IVW, IWM, QQQ, DVY are my main holdings. If they go to $0, I have guns and bullets.

I assumed Senator meant he would have guns and bullets to defend himself and what he owns if all goes into financial chaos. But also thought it was a joke.

 

[steelyman]

This is exactly why putting it on autopilot every month makes so much sense to me. We invest every month on the 1st and 15th. It takes no nerve whatsoever!

Truer words were never spoken (I mean "typed"). For those who have the opportunity to regularly invest in things like employer retirement plans, just keep plugging away.

Maybe you stumbled on e-r.org to find helpful advice for achieving (or equally importantly, sustaining) an early retirement? Or - and this is what I think of - maybe you're someone farther down the road who's worked year after year and just can't keep on doing it indefinitely (for whatever reason)? Study after study is available that all point to the same, boring, approach.

 

[Senator]

if your 5% loss = $170,000, doesn't that mean you still have over $3,200,000 moldering away in the stock market? Some might view that as a rather enviable position in which to be. As in, you probably won't have to sell plasma to buy a tank of gas for the old Corolla.

Actually, the S&P was at 2,129.20 on 5/18/15. It is now 1,851.86. That is an almost 15% drop. Most stocks in the S&P are down 20%+. To be down 5% and lose $170K does take 3.2M.

It only takes $1.13M to get that kind of drop and now be worth $170K less. If you bought at the wrong times, as in on a regular schedule, you may not even match the S&P returns and have suffered more. A far cry from $3.2M.

I assumed Senator meant he would have guns and bullets to defend himself and what he owns if all goes into financial chaos. But also thought it was a joke.

Yes, it is a joke. (unless the S&P actually goes to 0)... If the S&P actually went to 0, money would be of little use. Gold would be hard to spend. Banks would be closed and out of money. Politicians and their cronies would still be living the fat cat life and that would have a tendency to upset people .

You would need an alternate plan... Of course, drinking may also be a solid option, so stocking up on some whiskey would not hurt a bit either.

 

[dixonge]

Actually, the S&P was at 2,129.20 on 5/18/15. It is now 1,851.86. That is an almost 15% drop. Most stocks in the S&P are down 20%+. To be down 5% and lose $170K does take 3.2M.

It only takes $1.13M to get that kind of drop and now be worth $170K less. If you bought at the wrong times, as in on a regular schedule, you may not even match the S&P returns and have suffered more. A far cry from $3.2M.

The OP referred to a $4M+ portfolio in their original post on the boards last year...

Yes, it is a joke. (unless the S&P actually goes to 0)... If the S&P actually went to 0, money would be of little use. Gold would be hard to spend. Banks would be closed and out of money. Politicians and their cronies would still be living the fat cat life and that would have a tendency to upset people .

You would need an alternate plan... Of course, drinking may also be a solid option, so stocking up on some whiskey would not hurt a bit either.

Lead is a favorite precious metal in the Prepper crowd

 

[ripper1]

Market just opened 5 minutes ago and S and P 500 already down 30pts. This sucks. This week can't end soon enough.

 

[jerome len]

As as you have cash for a couple years living expenses can live off if dividends/interest you are ok. And, if you're still working the market may go lower but it always comes back. I'm relaxed my dividends/interest exceed my living expenses

 

[Looking4Ward]

Market just opened 5 minutes ago and S and P 500 already down 30pts. This sucks. This week can't end soon enough.

And 10 year bond yield is down 7.69% which means bond prices are rising as investors flee equities for bonds.

Makes me feel good about my decision to keep 3-4 years of immediate expenses in (Pssst) Wellesley.

 

[Corporateburnout]

Market just opened 5 minutes ago and S and P 500 already down 30pts. This sucks. This week can't end soon enough.

This is bad for short term investors and for retirees that must sell equities for income. If you're a long term investor and you don't need to sell equities to make ends meet don't look at the daily charts

 

[misshathaway]

In such a case, you should only need one of each.

If he has Alzheimers he won't be able to find most of them. Diversify your guns.

My dad had dementia and one gun ... somewhere. I live in his house and to this day, 13 years after his death, I still haven't found it.

 

[ripper1]

A stock market drop of 50% or more could be considered a once in a lifetime event. Now we had two in one decade. Could we be heading for a third historical decline within 15 years?

 

[REWahoo]

A stock market drop of 50% or more could be considered a once in a lifetime event. Now we had two in one decade. Could we be heading for a third historical decline within 15 years?

NASA... says there's 'no possibility' asteroid TX68 will hit Earth next month

Of course not....

 

[marko]

Market just opened 5 minutes ago and S and P 500 already down 30pts. This sucks. This week can't end soon enough.

I follow a bunch of chartists. Fidelity's Jurien Timmer for one (though I'm not a Fido customer).

General chart consensus is a nice rally starting 4-8 weeks from now....till then, pain

 

[NW-Bound]

NASA... says there's 'no possibility' asteroid TX68 will hit Earth next month

Of course not....

If the market drops 50% then an asteroid hits, does it count as only one calamity meaning only the worst one matters, or do we still think of it as two strikes? I leave it to the reader to consider which of the two is worse.