Market correction anxiety

[NW-Bound]

Thanks for reminding me of AIEQ. I heard of it, but forgot the symbol.

Just looked up its performance for the last 12 months. Dead even with the S&P at this point.

At the end of August, S&P was up 10%, while AIEQ was up 16%. But when the S&P went down, it went down more. So, the software was not able to sell high in order to keep the gain.

 

[NYEXPAT]

Thanks for reminding me of AIEQ. I heard of it, but forgot the symbol.

Just looked up its performance for the last 12 months. Dead even with the S&P at this point.

At the end of August, S&P was up 10%, while AIEQ was up 16%. But when the S&P went down, it went down more. So, the software was not able to sell high in order to keep the gain.

I got rid of it when I saw how it could not handle corrections, anybody can beat the S&P in a up market!

 

[NYEXPAT]

If you look at AIEQ in more detail, you will see it peaked 1 month before it's benchmark (S&P 500). Also interesting, was their second largest holding Forest city Realty Trust was sold to a Canadian company about a month before the peak. The deal did not close until last Friday (I believe) and so those shares appear to have been locked up all that time! In addition the cash in their portfolio is now their fourth largest holding which would point to a loss!

I think the jury is still out on AIEQ and will continue to watch it.

 

[audreyh1]

All quiet? We established a lower close today.

 

[NW-Bound]

We are too busy licking our wound.

 

[W2R]

All quiet? We established a lower close today.

We are too busy licking our wound.

I agree... ow. It's been quite a week.

I have no way to know, but I wouldn't be surprised if this turned into another version of crash/recession/whatever/giant-market-mess like 2008-2009. At least this time I feel like I have been there, done that, so that's an advantage.

 

[Dtail]

I agree... ow. It's been quite a week.

I have no way to know, but I wouldn't be surprised if this turned into another version of crash/recession/whatever like 2008-2009.

Perhaps you have a reverse "whee" spell straight from Nawlins.

 

[W2R]

WHOA!!!

Perhaps you have a reverse "whee" spell straight from Nawlins.

Ha ha!! I'm tryin'! How about "WHOA!!!" Maybe that will work... Guess I should dust off my crystal ball, which actually is sitting on my fireplace mantel right now.

 

[RobLJ]

I took some stock gains last year (& the year before) to cash and bonds, dropping the stock allocation to 56%. After the last couple weeks, I'm down to about 52.5%, so I'm about to do a partial rebalance back up to 55%, with the remainder of the rebalance in my customary period in late Jan/early Feb (I'll probably only go to 57/58% though).


After a partial rebalance, I would still have enough cash for the yearly withdrawal.

 

[steady saver]

I am using the bucket strategy. Each bucket as a specific time horizon and specific purpose. Very Short term bucket of less than 1 year tend to be 100% cash. 3 years bucket 25/75; 5 yrs bucket 50/50; 10 years or more bucket 75/25, etc I then add eveything up and they should be close to 50/50. In each of the bucket I have specific asset classes based on their 3 years, 5 year 10 year historical returns. As you can see, it is a complicated investment portfolio. I have an overall AA and a specific AA for each bucket. For example, I have one bucket to withdraw when I am age 85 and of course that is a long time horizon and therefore more heavy in stock than bonds.

As I stated before, I do not like to co-mingle my investments. Co-mingling makes it simple but you do lose some control. I review each bucket and how they perform and then rebalance.... mainly because one bucket had under-performed while another bucket over-performed. When a bucket underperformed, I attempt to discover why and add that to my knowledge base. You get smarter by your mistakes. When you comingle things, it is more difficult to determine why.

You heard of the saying "Never put all of your eggs in one basket"? In a sense that is what I am doing.

Thanks for describing your strategy. I felt calm just reading it...No, really, it makes a lot of sense to divide up those buckets into a 1,3,5 and 10+ year time allotments. I'd be interested in learning more about that. I understand the idea behind it, but would be interested in learning more about what those buckets might hold. I'm going to do some thinking and research on that idea, but anything more you might want to share would also be welcome.

 

[WestUniversity]

I buy every 2 weeks. DCA takes the guess work out. I realize a discount when I see one

Well stated!