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08-28-2008, 08:33 AM
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#41
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Thinks s/he gets paid by the post
Join Date: Mar 2007
Posts: 1,318
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Quote:
Originally Posted by liman
I can relate to the article. I retired at age 52 in August, 2007. I had planned it out for a long time. Four months later I had had enough and began thinking about getting back to work. Credit crunch lunacy, skyrocketing inflation, tanking stock markets. A very depressing and nerve racking time to retire early. Seeing people falling on hard times all around me, and I sure did not want to be in their situation. Glad to be back at work, at least for the next couple of years.
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Skyrocketing inflation? What country do you live in?
I realize we have relatively high inflation in the US compared to the past 25 years or so, but I would not call it "skyrocketing". When it's 20% or so, come back and we'll talk.
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08-28-2008, 09:39 AM
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#42
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Dec 2003
Location: Losing my whump
Posts: 22,697
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Doesnt sound like it was a very good plan if four bad months derailed it.
__________________
Be fearful when others are greedy, and greedy when others are fearful. Just another form of "buy low, sell high" for those who have trouble with things. This rule is not universal. Do not buy a 1973 Pinto because everyone else is afraid of it.
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08-28-2008, 11:21 AM
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#43
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Oct 2003
Posts: 5,105
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Quote:
Originally Posted by cute fuzzy bunny
Doesnt sound like it was a very good plan if four bad months derailed it.
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Not to pile on but, I must agree.
I'm guessing he omitted the the cash flow planning aspect.
2-3 years of expenses in cash or low risk investments.
__________________
Sometimes death is not as tragic as not knowing how to live. This man knew how to live--and how to make others glad they were living. - Jack Benny at Nat King Cole's funeral
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08-28-2008, 03:05 PM
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#44
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Thinks s/he gets paid by the post
Join Date: Mar 2006
Location: Houston
Posts: 4,337
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Quote:
Originally Posted by cute fuzzy bunny
Doesnt sound like it was a very good plan if four bad months derailed it.
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I'm starting to think that a significant percentage of the population (including this forum) have no knowledge of finanial events prior to 2003.
That's the only way I can reconcile the outrageous levels of panic I see. Do people actually believe the dem crap of "worst economy in 50 years" that has been shouted non-stop for the last 8 years?
__________________
The object of life is not to be on the side of the majority, but to escape finding oneself in the ranks of the insane -- Marcus Aurelius
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08-28-2008, 03:10 PM
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#45
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Dec 2003
Location: Losing my whump
Posts: 22,697
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Hey dont look at me. I retired in early 2001 right as the stock market slid into a huge hole in the ground. But I guess people werent getting hit from every direction like they are today. Although the stock "correction" is a little easier to take this time.
I'm not sure where I'd throw the anchors right now. I guess its just spread it around and wait for something to recover.
__________________
Be fearful when others are greedy, and greedy when others are fearful. Just another form of "buy low, sell high" for those who have trouble with things. This rule is not universal. Do not buy a 1973 Pinto because everyone else is afraid of it.
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08-28-2008, 03:15 PM
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#46
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jun 2002
Location: No Country for Old Men
Posts: 47,478
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Quote:
Originally Posted by cute fuzzy bunny
I'm not sure where I'd throw the anchors right now. I guess its just spread it around and wait for something to recover.
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Pork belly futures. It ain't bacon yet, but it's gonna be!
__________________
Numbers is hard
Retired in 2005 at age 58, no pension
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08-28-2008, 03:18 PM
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#47
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Moderator Emeritus
Join Date: Jun 2007
Location: At The Cafe
Posts: 6,873
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Quote:
Originally Posted by 2B
I'm starting to think that a significant percentage of the population (including this forum) have no knowledge of finanial events prior to 2003.
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--
This forum really has changed in the last year. You would be shouted out of the room a year ago for growling like a bear cub. What I sense here is that the most vocal people in the finance section may be short traders. How many of us think of equities as strictly long term investments? Anything I've got in equities is 15+ plus; I choose 15 because that may be beyond my life expectancy. Have we done a poll on this?
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08-28-2008, 03:20 PM
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#48
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Moderator Emeritus
Join Date: Jan 2007
Location: New Orleans
Posts: 44,374
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Quote:
Originally Posted by 2B
I'm starting to think that a significant percentage of the population (including this forum) have no knowledge of finanial events prior to 2003.
That's the only way I can reconcile the outrageous levels of panic I see. Do people actually believe the dem crap of "worst economy in 50 years" that has been shouted non-stop for the last 8 years?
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I was maxing out my 401K prior to 2003, but was pouring everything else into my down payment and then principal on the mortgage for my house. Even so, the market seemed worse to me then than now.
I wonder if maybe a lot of those who are freaking out about the economy, live in "real estate bubble" locations where the bubble has popped. Those who hitched their wagon to the real estate star in areas where real estate has crashed, are probably in a state of shock.
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08-28-2008, 03:21 PM
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#49
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jun 2002
Location: No Country for Old Men
Posts: 47,478
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Quote:
Originally Posted by CuppaJoe
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I choose 15 because that may be beyond my life expectancy. Have we done a poll on this?
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You want to do a poll on your life expectancy? Knock yourself out...
__________________
Numbers is hard
Retired in 2005 at age 58, no pension
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08-28-2008, 03:24 PM
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#50
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Apr 2003
Location: Hooverville
Posts: 22,983
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Quote:
Originally Posted by CuppaJoe
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This forum really has changed in the last year. You would be shouted out of the room a year ago for growling like a bear cub. What I sense here is that the most vocal people in the finance section may be short traders. How many of us think of equities as strictly long term investments? Anything I've got in equities is 15+ plus; I choose 15 because that may be beyond my life expectancy. Have we done a poll on this?
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I don't quite understand your statements. Do you mean long-side traders with a short term outlook?
And by "Anything I've got in equities is 15+ plus..." do you mean that you would not touch your equity holdings for 15 years no matter what happened in the market or society or business?
If that is what you mean, count me as a short term trader.
Ha
__________________
"As a general rule, the more dangerous or inappropriate a conversation, the more interesting it is."-Scott Adams
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08-28-2008, 03:29 PM
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#51
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Thinks s/he gets paid by the post
Join Date: May 2006
Location: Where the stars at night are big and bright
Posts: 2,847
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Quote:
Originally Posted by 2B
I'm starting to think that a significant percentage of the population (including this forum) have no knowledge of finanial events prior to 2003.
That's the only way I can reconcile the outrageous levels of panic I see. Do people actually believe the dem crap of "worst economy in 50 years" that has been shouted non-stop for the last 8 years?
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The dominant media has been working overtime to convince everyone, and we do have a lot of people here who have known nothing but the comparatively great economic times we've seen over a couple of decades.
__________________
There is no pleasure in having nothing to do; the fun is having lots to do and not doing it. - Andrew Jackson
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08-28-2008, 03:30 PM
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#52
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Moderator Emeritus
Join Date: Jan 2007
Location: New Orleans
Posts: 44,374
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I guess I would sell equities if/when they did well enough that I needed to, when rebalancing.
Otherwise, I don't see any reason to. More likely, I would cut back on expenses and hold on.
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08-28-2008, 03:33 PM
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#53
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Moderator Emeritus
Join Date: Jun 2007
Location: At The Cafe
Posts: 6,873
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Better me, than you! I don't have much of a left jab.
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08-28-2008, 03:42 PM
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#54
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Moderator Emeritus
Join Date: Jun 2007
Location: At The Cafe
Posts: 6,873
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Quote:
Originally Posted by haha
I don't quite understand your statements. Do you mean long-side traders with a short term outlook?
And by "Anything I've got in equities is 15+ plus..." do you mean that you would not touch your equity holdings for 15 years no matter what happened in the market or society or business?
If that is what you mean, count me as a short term trader.
Ha
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Yeah, for now, that equity paper money is buy, hold and forget. I cashed out last year because of retirement planning and near 14,000 looked ok to me considering that I had 30 years of buy, hold and ignore the noise. I'll take my head out of the sand again in ten years; and in the meantime I will continue to add to the equity side.
It's easy to over-generalize what others say here, but often I wonder if they're crying in their beer because they bought at over 13,000? Are they upset because they bought at 12,000 when it's at 11,500? That would be short-term thinking. I don't care if the DOW swings 400 points either way today or tomorrow.
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08-28-2008, 03:51 PM
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#55
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Apr 2003
Location: Hooverville
Posts: 22,983
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Quote:
Originally Posted by CuppaJoe
It's easy to over-generalize what others say here, but often I wonder if they're crying in their beer because they bought at over 13,000? Are they upset because they bought at 12,000 when it's at 11,500? That would be short-term thinking. I don't care if the DOW swings 400 points either way today or tomorrow.
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My take is that they are more concerned about drops that are truly large but certainly possible(within recent historical experience). I know I am.
Ha
__________________
"As a general rule, the more dangerous or inappropriate a conversation, the more interesting it is."-Scott Adams
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08-28-2008, 04:17 PM
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#56
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Thinks s/he gets paid by the post
Join Date: Feb 2007
Posts: 2,242
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I started investing in January 1987. In October of that year the market crashed , and went down 25% in a single day. The equivalent today would be a drop of close to 3,000 points in the Dow. I wonder how many of us would be cool calm and collected after a day like that. (I sure as hell wasn't -I was so scared that I froze and did nothing for a whole year fortunately as it turned out)
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08-28-2008, 04:47 PM
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#57
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jan 2007
Location: Sarasota,fl.
Posts: 11,446
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I started investing in the 80's so I was thru the 1987 drop , the dot com bust & more . It always rattles me but logically I know I could survive on less than half the amount I have invested and be okay .
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08-28-2008, 04:58 PM
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#58
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Moderator Emeritus
Join Date: Jun 2007
Location: At The Cafe
Posts: 6,873
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Quote:
Originally Posted by haha
My take is that they are more concerned about drops that are truly large but certainly possible(within recent historical experience). I know I am.
Ha
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My first post was prompted by several threads asking people how much or what percentage they lost since last October's high or this year or since June; short term results. Problem is, we don't know what their cost was. Several frequent posters lament where there portfolio is today; I have no way of knowing if they are comparing it to cost (plus inflation) or, say, the 14,000 paper high.
This thread is a good example of many topics. I, too, am concerned about a large drop whether I'm fully invested or not.
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08-28-2008, 05:10 PM
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#59
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Moderator Emeritus
Join Date: Jun 2007
Location: At The Cafe
Posts: 6,873
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Quote:
Originally Posted by ejman
I started investing in January 1987. In October of that year the market crashed , and went down 25% in a single day. The equivalent today would be a drop of close to 3,000 points in the Dow. I wonder how many of us would be cool calm and collected after a day like that. (I sure as hell wasn't -I was so scared that I froze and did nothing for a whole year fortunately as it turned out)
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I didn't panic that day because I was in since 1972 and always factor volatility into my thinking. Sure, my portfolio lost paper money that day, so what; I expected to be in the market at least another 20 years. [Edit: it was 100% equities then.]
If you started in Jan. had a loss in Oct., I would think you had relatively little to lose?
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08-28-2008, 05:30 PM
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#60
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Thinks s/he gets paid by the post
Join Date: Feb 2007
Posts: 2,242
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Quote:
Originally Posted by CuppaJoe
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I didn't panic that day because I was in since 1972 and always factor volatility into my thinking. Sure, my portfolio lost paper money that day, so what; I expected to be in the market at least another 20 years. [Edit: it was 100% equities then.]
If you started in Jan. had a loss in Oct., I would think you had relatively little to lose?
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Well, no. I had been working overseas for 6 years so had quite a bit saved which I proceeded to invest when I got back home. At the time I was not really aware of investing history and that volatility is par for the course. All I knew is that the 1929 crash was here again and I'd been foolish enough to blow my hard earned stash.
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