The Inevitable 10% Correction

[2B]

The high on the S&P was set at 2019.26 on 19 September. The 10% correction will be officially achieved at 1817.33. So far, the days low as of this post is 1820.66. We may not hold above this into the close but this is close enough for me to say we've now corrected 10%.

My Vanguard CFP recommended I increase my equities allocation from 40 to 60%. That was just a couple of weeks ago. I'm sure glad I didn't.

 

[Throwdownmyaceinthehole]

So what's the thought of doing a backdoor Roth today? Pay taxes on lower amount and bounce back would be tax free?

 

[easysurfer]

Just for grins, it's days like today to run the market ticker on my computer

 

[shasta]

The high on the S&P was set at 2019.26 on 19 September. The 10% correction will be officially achieved at 1817.33. So far, the days low as of this post is 1820.66. We may not hold above this into the close but this is close enough for me to say we've now corrected 10%.

My Vanguard CFP recommended I increase my equities allocation from 40 to 60%. That was just a couple of weeks ago. I'm sure glad I didn't.

Now seems like a great time to shift some into equities to me. Im gonna give it a cash infusion personally.

 

[brewer12345]

I was thinking something similar. I noticed that even on an ugly day like today a few of the more badly battered things I own or watch are starting to move up. This also looks like a day to collect profits on treasuries. I liquidated much of a stake in a leveraged treasury ETF today.

 

[Huston55]

Now seems like a great time to shift some into equities to me. Im gonna give it a cash infusion personally.

Agreed. Just received 401k/Roth 401k in Fido Rollover IRA and Rollover Roth IRA. Came from a 401k Target Fund, and will be in FSTVX (Total Mkt Advantage Class) at today's market close.

This was already part of our 'consolidation' plan but, I consider the timing fortunate. Hope I still consider it so by Friday's close.

 

[Throwdownmyaceinthehole]

My first Ira to Roth conversion done, thru vanguards website, just exchanged from IRA to Roth, kept the same fund, hope I did it right, just moved a partial amount out of one fund, is that okay? Will just trigger tax on the amount I moved?

 

[Major Tom]

Being a long-term holder of passive index funds, my "strategy" mainly involves not checking my balance on days like this, and waiting until we've had a few up days before checking again.

Hopefully we'll actually have a few up days, or I'll have to brace myself before logging in

 

[shasta]

Being a long-term holder of passive index funds, my "strategy" mainly involves not checking my balance on days like this, and waiting until we've had a few up days before checking again.

Hopefully we'll actually have a few up days, or I'll have to brace myself before logging in

Im the exact same way.

 

[FUEGO]

Looks like a good day to make the 2014 IRA contributions. I just wish my Vanguard individual 401k was approved already instead of sitting in my mailbox with the flag up... Maybe mr. market will wait for my approval before tearing back upwards.

 

[sheehs1]

Being a long-term holder of passive index funds, my "strategy" mainly involves not checking my balance on days like this, and waiting until we've had a few up days before checking again.

Hopefully we'll actually have a few up days, or I'll have to brace myself before logging in

Same here.

 

[NW-Bound]

I am down close to $250K from the high.

Failing to sell high (hey, I was busy RV'ing), all I can hope to do now is to buy low. But it is not that low yet.

The correction is finally here. Long live the correction!

Oops! Wrong thing to say.

PS. The RV'ing is a lame excuse. Despite being a self-proclaimed market timer, I failed to sell high. Pure and simple.

 

[RAE]

Now seems like a great time to shift some into equities to me. Im gonna give it a cash infusion personally.

Could be, but I'm waiting a bit longer yet, to see how this plays out. Considering how many consecutive years the market has been up (mostly due to Fed manipulation), and considering the economic state of the world in general (lousy), I don't think this is going to be one of those corrections that is over quickly. I think it may drag on for a while, and I don't think the market will bounce back strongly right after that, either. I may be all wrong, we'll see.......

 

[nash031]

IRA contributions and semi-monthly taxable investments go in tomorrow at a 10% discount from last month! Woohoo!

 

[steelyman]

I recall sitting in a staff meeting of about 150 people in early 2009. No good news at all, layoffs, funding dropped, stocks tanking. I thought "crap, I'll never be able to retire now".

But it's 2014 and I don't have to go to work anymore. I didn't do anything but Roll, Roll, Roll, Brother Trucker.

(That song was written for Studs Terkel's "Working")

 

[38Chevy454]

Have to agree that the correction has long been predicted by many, seems it is finally here.

The thing to keep in mind, as long as you are not selling off, just ride it out. If you have some extra cash, might be a good time to buy low and then ride some gains.

I would not mind if this bear would decide it is time to go hibernate though

 

[shasta]

All the dreams I had of how big next years raise would be at rebalance - crushed in a month.

 

[Looking4Ward]

Now seems like a great time to shift some into equities to me. Im gonna give it a cash infusion personally.

Same here. My 5% "Cash" has been sitting in VWALX (municipal bond fund) and I exchanged all of it for Wellington today.

 

[Looking4Ward]

All the dreams I had of how big next years raise would be at rebalance - crushed in a month.

There's still time for a Santa Claus rally.

 

[steelyman]

CNBC and similar are probably kicking up their heels. They trot out new hotties and get the ad dollars as viewership rises.

 

[jebmke]

My Vanguard CFP recommended I increase my equities allocation from 40 to 60%.

Why?

When I used VG planner, I gave him the target allocation.

 

[macav933]

Just sat down with my adviser yesterday....first question out of her month was "how do you feel about the market"....my current allocation is 51% equity's with a goal of 55% given I'm still working PT at age 56. Plan to dollar cost average about $120K in cash into stocks starting in Feb. Maybe things will shake out in the meantime. Way to young to not see this as anything other than a buying opportunity!

 

[clifp]

I am still in state of mild shock. How did Dow end up down 175 the S&P down 15, and my portfolio end up a $1,000?

Analyzing it, all of my interest sensitive MLP had significant rallies as did the Vanguard Small Cap index fund. I do wonder if the small cap having a up day, in the middle of carnage is sign the end of the correction?

 

[foxfirev5]

Getting closer to a rebalance point. However at this stage of the game it will be a gradual rebalance into equities if the slide continues. Basically repurchasing what I sold off at S&P 1875 - 2000 to keep under my 45% equity cap.

 

[NW-Bound]

I am still in state of mild shock. How did Dow end up down 175 the S&P down 15, and my portfolio end up a $1,000?

Analyzing it, all of my interest sensitive MLP had significant rallies as did the Vanguard Small Cap index fund. I do wonder if the small cap having a up day, in the middle of carnage is sign the end of the correction?

I am shocked too. Have you looked into becoming a hedge fund manager?