Some perspective

[BOBOT]

I was cringing at the (unrealized) "losses" in the Bobot portfolio after the recent fall-and-go-boom, when I took a few steps back to see what it looks like in the bigger picture.

It happens that we're a tad ahead in nw than we were exactly 2 years ago, when I only had 4 months to go before ER. I felt pretty good about things then, & won't be needing to draw out anything other than existing cash for at least a few years, so I'm not in a panic to push the big red button.

Maybe I'm whistling past the graveyard, but it's a splendid early fall day & I think I'll go for a nice walk.

 

[FUEGO]

Young accumulator reporting in. I've been out of college working now for about 4 years. Our portfolio is still about 2% higher than it was on June 30, 2007. That is mainly due to new contributions.

When I "zoom out" a bit and look at changes in our net worth, the portfolio performance is dampened out a lot. We are paying down a lot of debt (mortgage, credit cards, student loans) every month, and our house has generally managed to go upward (slowly) in value just about every quarter (yes, even in the last couple of years). So far we have had a net worth increase every quarter since I started tracking net worth quarterly back in 2004. Come 9/30/2008, I don't know if we'll be slightly up or slightly down versus last quarter, but I think I can say with substantial certainty that we will be way up year over year for our net worth. Recent market suckage has been a strong headwind in our efforts to increase net worth, but not an insurmountable wall. This will look a lot more like a blip on a graph in 5 or 10 years than a major dip. In fact, I think the market being significantly lower right now, and potentially for another year or more, will increase our net worth long term, as we'll be buying in at lower prices.

Keep your eye on the ball, keep things in perspective, etc.

 

[soupcxan]

Slightly offtopic, but I think the two of you should team up and become the FUEGOBOT. If anything can get us out of this economic mess, it's a flaming robot.

 

[FUEGO]

Slightly offtopic, but I think the two of you should team up and become the FUEGOBOT. If anything can get us out of this economic mess, it's a flaming robot.

Sounds like a plan! Maybe manufacture flaming robots and sell em to the military for a couple billion each?

 

[FinanceDude]

Slightly offtopic, but I think the two of you should team up and become the FUEGOBOT. If anything can get us out of this economic mess, it's a flaming robot.

My kid would know, but I think there's a Pokemon named that.........

 

[cute fuzzy bunny]

If its any consolation, everyone around here was saying all the same stuff at the end of 2002 and early 2003. By 2004 everyone was pretty happy and crowing about having bought a bunch of stuff at the bottom.

Except for the people who sold and ran to cash at the wrong time and the people who were always in cash. For some reason they stopped the "I'm in cash and dont care about the market!" posts right around the middle of 2003.

 

[Notmuchlonger]

Good news bacon and booze still for sale at the stores!

 

[REWahoo]

Except for the people who sold and ran to cash at the wrong time and the people who were always in cash. For some reason they stopped the "I'm in cash and dont care about the market!" posts right around the middle of 2003.

You don't understand. This time it's different.

 

[lazygood4nothinbum]

more perspective: if i was working now, i wouldn't be giving this current economy a second thought.

 

[lswswein]

Oh yeah - I am still DCAing into the 401k etc. As long as the job is there, no worries and if anyone has suggestions for a screaming buys please do post. The gambling port hasn't been traded in a while

-h

 

[ziggy29]

more perspective: if i was working now, i wouldn't be giving this current economy a second thought.

You might if you thought the current economy jeopardized your continued employment.

 

[Gotadimple]

So when the going gets tough, I say, the tough go hiking. Mt. St. Helens, southwest Washington state on 9/17/2008. Oh the little wisps? Steam. And the generally haziness? Forest fires further east.

 

[cute fuzzy bunny]

You don't understand. This time it's different.

You're so right.

We're nowhere near as far down as we were then, we havent been attacked by terrorists, and all we've got to show so far are a bunch of companies who screwed up on leverage and liquidity with no actual permanent damages to show for it.

 

[CCdaCE]

Pfffft. See? It's only PAPER losses.

-CC

 

[Bestwifeever]

You're so right.

We're nowhere near as far down as we were then, we havent been attacked by terrorists, and all we've got to show so far are a bunch of companies who screwed up on leverage and liquidity with no actual permanent damages to show for it.

Yeah but this time we have those rats from outer space to worry about....

 

[MGYog]

You're so right.

We're nowhere near as far down as we were then, we havent been attacked by terrorists, and all we've got to show so far are a bunch of companies who screwed up on leverage and liquidity with no actual permanent damages to show for it.

What about the ones losing their jobs? That's pretty permanent for them, IMHO.

 

[FUEGO]

What about the ones losing their jobs? That's pretty permanent for them, IMHO.

Well, most find new jobs eventually. Unemployment still isn't running but about 1% or so above the structural unemployment rate. So we are talking about ~1% of our labor force that is in trouble? And for the first 9 months they receive a substantial unemployment check.

Clearly unemployment is a big bump in the road for most (particularly those who are "undercapitalized"). But permanent??

 

[Notmuchlonger]

more perspective: if i was working now, i wouldn't be giving this current economy a second thought.

I think you are right.

 

[cute fuzzy bunny]

Nope, these days if you lose your job you have to walk the plank.

Besides, unemployment in 2002 and 2003 was higher than it is today.

 

[Free To Canoe]

So when the going gets tough, I say, the tough go hiking....

Gotadimple,

Good one!

Free to Canoe