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Old 07-09-2017, 11:18 AM   #41
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There were posters who said that not even US federal bonds were safe, and only Krugerrands would do. It was an exciting time.
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Old 07-09-2017, 11:18 AM   #42
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Yes, quite dramatically. Corporate bonds were hit hard. They did recover more quickly than equities though - it was like a 3 month scare.

High yield bonds got clobbered worse.

Only the safest bonds - treasuries, tips, - went positive during this period.

Look at DODIX versus VBISX for illustration.

So a lot of folks felt like fixed income didn't help. I think the answer is that you had better be in high quality fixed income. If you are all corporate and high yield bonds, your fixed income won't help you during a market event like 2008.
I just noticed your signature line, As usual I have a story about travel agents. I think I will start a new thread on that. Ty for the DODIX versus VBISX
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Old 07-09-2017, 11:20 AM   #43
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There were posters who said that not even US federal bonds were safe, and only Krugerrands would do. It was an exciting time.
It was very "exciting", My high blood pressure was even higher. The minute(maybe the first few seconds) I would her the topic of investing I would run in the other direction. When the next plummet happens, I will stick to what I think are humorous stories. Ill stay off the money threads.
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Old 07-09-2017, 12:40 PM   #44
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Yes, quite dramatically. Corporate bonds were hit hard. They did recover more quickly than equities though - it was like a 3 month scare.

High yield bonds got clobbered worse.

Only the safest bonds - treasuries, tips, - went positive during this period.

Look at DODIX versus VBISX for illustration.

So a lot of folks felt like fixed income didn't help. I think the answer is that you had better be in high quality fixed income. If you are all corporate and high yield bonds, your fixed income won't help you during a market event like 2008.
Although there was a period in the fall of 2008 when the market for Tips was shaky. Real yields rose to over 3%. I loaded up in October.
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Old 07-09-2017, 12:44 PM   #45
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March 09, 2009 was the day all 3 indices and my stash hit the bottom.

Compared to the top on October 31, 2007, the S&P was down to 44% of its previous high (1269 vs. 2804). The market lost 56%. My stash lost 37%.

Between those 2 dates, here are some terrifying days.

2008/09/04 DJ dropped 345, from 11533 to 11188.

2008/09/15 DJ dropped 504, from 11422 to 10918

2008/09/26 DJ dropped 778, from 11143 to 10365. S&P down 8.8%.

2008/10/06 DJ dropped 369, from 10325 to 9956

2008/10/07 DJ dropped 509, from 9956 to 9447

2008/10/09 DJ dropped 679, from 9258 to 8579

In between those terrible days, there were days when the DJ went up 937 on 2008/10/13 (SP up 11.6%), or 889 on 2008/10/27 (SP up 10.8%). The market kept bouncing up/down, but more down than up until it bottomed out in early March 2009.

I kept a diary, and that was what I just looked up. I also found that I had my 1st colonoscopy in that time frame (2008/09/30). The scary market did not keep me from traveling. We flew to Seattle, rented a car and did a road trip to Victoria and Vancouver in early Sep 2009.

Me scared? It's only money, not life and death. Life under a bridge is still better than no life, oui?
We went to Italy in the fall of 2009. The travel deals were phenomenal back then (it was also a great time to have work done on the house!). Once the debt market mostly righted itself I was less concerned. The fall of 2008 was more tense than 2009 for me.
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Old 07-09-2017, 12:54 PM   #46
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I remember we had a staycation. My husband and I splurged at the local restaurants that we hadn't been to for a while.
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Old 07-09-2017, 12:56 PM   #47
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OMG, A staycation, Ill be using that one during happy hours.
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Old 07-09-2017, 01:20 PM   #48
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Looking back I am amazed that life went as normal .Despite losing 40% I still traveled in fact I took two big trips in 2009 & 2010 . I do a straight 4% of my stash and I really did not feel pinched . My lower balance got to be the new reality and I just adjusted . I did have a pension and ss to help my sanity .My 4% was just icing on the cake .
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Old 07-09-2017, 01:59 PM   #49
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Moemg >>> so from those years (2008) did you recover and did you stay the course and didn't sell?
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Old 07-09-2017, 02:02 PM   #50
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Looking back I am amazed that life went as normal .Despite losing 40% I still traveled in fact I took two big trips in 2009 & 2010 . I do a straight 4% of my stash and I really did not feel pinched . My lower balance got to be the new reality and I just adjusted . I did have a pension and ss to help my sanity .My 4% was just icing on the cake .
Did you retire yet? We weren't.
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Old 07-09-2017, 03:56 PM   #51
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Looking back I am amazed that life went as normal .Despite losing 40% I still traveled in fact I took two big trips in 2009 & 2010 . I do a straight 4% of my stash and I really did not feel pinched . My lower balance got to be the new reality and I just adjusted . I did have a pension and ss to help my sanity .My 4% was just icing on the cake .
People adapt better than they would think. Look at the hardship people endure in wars, famine, calamities. People survive the World Wars, the Great Depression, earthquakes, tsunami, Katrina, etc... What we personally went through in the Great Recession was just mental, and nothing to complain about really, other than about these g*d***** bankers.

And right now, Venezuelans are suffering (and the world cannot help nor care much). Look at these poor dogs in Caracas. People do not fare much better.

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Old 07-09-2017, 04:06 PM   #52
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People adapt better than they would think. Look at the hardship people endure in wars, famine, calamities. People survive the World Wars, the Great Depression, earthquakes, tsunami, Katrina, etc... What we personally went through in the Great Recession was just mental, and nothing to complain about really, other than about these g*d***** bankers.

And right now, Venezuelans are suffering (and the world cannot help nor care much). Look at these poor dogs in Caracas. People do not fare much better.

I never liked Hugo, Im sure if he met me, the feelings would have been mutual.
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Old 07-09-2017, 04:10 PM   #53
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Forget about dogs, the people in Venezuela can't afford to eat. I've read they go to Trinidad nearby for food. Even a doctor can't practice medicine.
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Old 07-09-2017, 05:31 PM   #54
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Did you retire yet? We weren't.
I retired Jan. 20th 2008 . Talk about bad timing !
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Old 07-09-2017, 05:36 PM   #55
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Moemg >>> so from those years (2008) did you recover and did you stay the course and didn't sell?
I stayed the course . I was heavy in stocks so I really took a beating plus I had just retired . I did sell $10,000 at the low but otherwise I just hung in there . By 2013 my portfolio was back to my all time high even with taking 4% most years and it has soared since then.I did learn to keep a few years in cash in case this happened again.
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Old 07-10-2017, 07:07 AM   #56
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I retired Jan. 20th 2008 . Talk about bad timing !
December, 2007 was my last month.

I had moved my portfolio gradually to a level where I knew I would re-balance. As a result, I was back to pre-crash level by 2010 I think (working from ever decreasing memory here). Failure to re-balance usually guarantees a long road back.
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Old 07-10-2017, 07:20 AM   #57
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I don't have my records in front of me at the moment, but I think I was up around 15% in 2007, down around 41% in 2008, and up around 40% in 2009.

I do remember hitting my personal rock bottom around Thanksgiving, 2008, and at that point I was actually down by slightly more than half. But the market had a quick bounce-back, and by the end of December I was up around 20% from that Thanksgiving low. The official bottom of the market was March 9, 2009. I seem to recall that January was a good month, adding to December '08's gains, but then February started to tank and then it hit the bottom in March.

I think my net worth hit a new record by Thanksgiving 2009, but that included additional investments, so I really wasn't "made whole" again from the recession until sometime in early 2010.
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Old 07-10-2017, 10:52 AM   #58
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Come to think of it, it has been 9 years since we experienced those scary market movements. How time flies!

In another 10 years, how many of us will still be posting or reading this forum?

Life is so short one cannot spend too much time worrying about money, particularly for those of us who are geezers, or of pre-geezer age. Unless one is broke, there are other more important things to worry about.
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Old 07-10-2017, 12:23 PM   #59
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I stayed the course . I was heavy in stocks so I really took a beating plus I had just retired . I did sell $10,000 at the low but otherwise I just hung in there . By 2013 my portfolio was back to my all time high even with taking 4% most years and it has soared since then.I did learn to keep a few years in cash in case this happened again.
Thanks and if a person can hold on and weather the storm in time a person should be back where they were at.
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Old 07-10-2017, 01:50 PM   #60
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Life is so short one cannot spend too much time worrying about money, particularly for those of us who are geezers, or of pre-geezer age. Unless one is broke, there are other more important things to worry about.
Absolutely ,It was an eye opening period but does not even come close to the awful things life can hand you.
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