Has anyone reduced their stock exposure this year?

[target2019]

The stock market is reducing my equity exposure already.

 

[Ready-4-ER-at-14]

Since 1-1-22 our net worth is down 2.92%. With mostly fixed income and modest stock loses and modest RE worth increase. Cash is about 20% but all but 7% is earmarked to be reintroduced to the market over time starting in march. I did reduce stock holdings by about 10% a couple of weeks ago . Also set up enough cash to pull out more than we need each month for 18 months so i won't panic sell. Finally to see some silver lining in the gloom news clouds I put in a buy limit order just below a support level on one of our biggest holdings that is about a 33% discount if it spikes there in one of those panic selling stories just so I have some bragging rights. : )

 

[FREE866]

Hope you're right. Unfortunately, this time is different. The issue is beyond just pure economics at this point. There's a war going on and the major power involved happens to be a big producer of petrol and gas. The x factor is the geopolitical uncertainty and impact to energy supply, which in turns (partly) drives inflation, and there's nothing US monetary and/or fiscal policies can do to influence the outcome.

"This time is different"


Famed investor John Templeton said those are the four most dangerous words in investing



Every S&P 500 correction since 2009:
-16.0%

-19.4%

-13.3%

-10.2%

-19.8%

-33.9%

-11.9% (this one)


Every time felt like the world was about to unravel at any moment

 

[razztazz]

Pretty short list of data points. Just because an outcome is similar to previous outcomes doesn't mean the inputs and potentialities weren't different and therefore should be ignored. You'd have to know the outcome to do that.

 

[FREE866]

Pretty short list of data points. Just because an outcome is similar to previous outcomes doesn't mean the inputs and potentialities weren't different and therefore should be ignored. You'd have to know the outcome to do that.

OK..how bout this then? The S&P 500 closed down 10% or worse for the 37th time since 1950. Thats basically every other year...Reacting to that at every turn would be psychotic in hindsight.

 

[tmm99]

Haven't changed anything. I never do, but then, I always wonder if I should have after the market tanks... I have no crystal ball so...

 

[lawman]

Haven't changed anything. I never do, but then, I always wonder if I should have after the market tanks... I have no crystal ball so...

Unlike 2008 I'm doing nothing this time so that should guarantee we'll see another Great Depression..

 

[tmm99]

Unlike 2008 I'm doing nothing this time so that should guarantee we'll see another Great Depression..

My former boss pulled everything out of the market after the housing crash as he got laid off shortly after, and he's still out of the market. I think being in the market is still better than trying to fight inflation with your money in the bank, but I could be wrong!

It's so much better when we can add tons of money when the market is down, but as a retiree, that's not easy to do...

 

[Winemaker]

Like I mentioned in another thread, DW moved some assets in a mutual fund from Investco to Fidelity, in kind, as I like to keep my AA the same. As it may, they sold the shares and sent cash. I was POed at first, but has turned out to be a blessing, as now I'm nibbling my way back, but it's making me w*rk, and I'm supposed to be retired and be collecting mailbox money!

 

[corn18]

Markets do not like uncertainty and disruptions. A full out War in that region means gas and oil (primary exports from Russia) prices will spike and further exacerbate inflation.

I definitely think there will be a correction caused by the potential of war and inflation, but this time the Feds can't print and spend there way out of it. I have some dry powder ready to deploy and dollar cost average.

Maybe we should stop importing oil and just live off of what we produce. We make enough for ourselves.

 

[Koolau]

The stock market is reducing my equity exposure already.

Sad but true.

 

[NW-Bound]

The stock market is reducing my equity exposure already.

Sad but true.

It could be readily remedied with just a few clicks on "Buy, buy, buy..." to bring it back up.

 

[splitwdw]

Maybe it's time for some of the posters to find an allocation they are more comfortable with, instead of worrying when the market drops. I have a health respect for the market but don't get upset or start selling when the market goes down. I look at my accounts every day and the ups and downs don't bother me. My sister panics. Last year she finally lowered her stock allocation and she is not upset by the latest drop. Please find an allocation you are comfortable with.

 

[F.I.R.E User]

Maybe it's time for some of the posters to find an allocation they are more comfortable with, instead of worrying when the market drops. I have a health respect for the market but don't get upset or start selling when the market goes down. I look at my accounts every day and the ups and downs don't bother me. My sister panics. Last year she finally lowered her stock allocation and she is not upset by the latest drop. Please find an allocation you are comfortable with.

Yup. It’s all emotional. At the end we long term investors win more because of natural DCA.

 

[foxfirev5]

Reduce? No way. I'm quite comfortable with my LMP which ends up around 50/50 AA. Any spare change (5k or so) that is not spent goes into the market on the dips. I'm hoping for a rising equity glidepath. And it still fits within the parameters of my IPS.

 

[Time2]

Maybe it's time for some of the posters to find an allocation they are more comfortable with, instead of worrying when the market drops. I have a health respect for the market but don't get upset or start selling when the market goes down. I look at my accounts every day and the ups and downs don't bother me. My sister panics. Last year she finally lowered her stock allocation and she is not upset by the latest drop. Please find an allocation you are comfortable with.

I don't normally, I stayed in all through 40% or so drop in 2008, would have been great to sell at 10% and buy back at 30% down, but no one can predict the future. But we can make guesses! I sold off during the beginning part of Covid and bought back 17% cheaper. This time I thought that Russia/Ukraine would cause a bigger drop, it just was not as big as I thought. I got back in today, I played, I won, but not as much as I wanted. But, I got about 15% of my yearly spending by playing. It was fun, if I had lost, it would not be fun. I'm only playing with my kids inheritance!
The mayhem may not be over for the markets. My son just said NATO is manning up.

 

[flyingaway]

The market did it for me.

 

[splitwdw]

I've been feeling uncomfortable recently with Russia and Ukraine, If that starts, I suspect the oil pipeline may be compromised and I'm concerned China will take advantage of that and go into Taiwan. Also, I'm sure the administration will be increasing interest rates, that will slow at least the housing splurge and in the end I think stock prices.
We are retired and have a large cushion, I had slightly over 70% of our net worth in stocks, So at close on 2-15 I sold a little more than 20% of my portfolio mostly VTSAX, all in tax deferred funds. I'm just in cash now, not sure if I'll put it in anything. I'm more concerned about a loss now than earning a lot more. Last year was so goo I earned 6 years of spending, so I feel better just sitting on the sideline for a bit.
Anyone else moving that direction?


PS, tell me when to get back in.

I don't normally, I stayed in all through 40% or so drop in 2008, would have been great to sell at 10% and buy back at 30% down, but no one can predict the future. But we can make guesses! I sold off during the beginning part of Covid and bought back 17% cheaper. This time I thought that Russia/Ukraine would cause a bigger drop, it just was not as big as I thought. I got back in today, I played, I won, but not as much as I wanted. But, I got about 15% of my yearly spending by playing. It was fun, if I had lost, it would not be fun. I'm only playing with my kids inheritance!
The mayhem may not be over for the markets. My son just said NATO is manning up.

I was responding to your first post where you were uncomfortable and "more concerned about a loss now than earning a lot more." I thought maybe you had an allocation that wasn't suited to you. But your follow-up shows you are back in playing and winning and not concerned. Not the same as someone that should change their allocation.

 

[Time2]

I was responding to your first post where you were uncomfortable and "more concerned about a loss now than earning a lot more." I thought maybe you had an allocation that wasn't suited to you. But your follow-up shows you are back in playing and winning and not concerned. Not the same as someone that should change their allocation.

We are around 70/30 maybe 65/35, depends on the value of a property we own. But in three years when I hit 70 and take SS, we will be down to under 1% withdrawal rate and even lower when we take the wife's SS. We need to learn to spend. Got to follow the blow that dough thread closer.

 

[Theoldbreed]

Same here…have not sold and continue to buy…as the old saying goes “the best time to be in the market is now”

 

[Markola]

I put the cash we’d need prior to age 59.5 in bonds and have been spending that down so, effectively, our portfolio has been growing gradually more stock-aggressive the last few years. I also took a position in Bitcoin to diversify and to own an asset with a stable supply to counter all the monetary and energy inflation.

 

[Rianne]

We re-invest our dividends.

 

[Koolau]

Mentioned elsewhere, I sold a block of megacorp stock from my 401(k) to "fund" my RMD this year. I was too concentrated in that stock due to its meteoric rise in price. Of course, I still have a bunch left. Otherwise, I'm sticking with the plan. YMMV

Megacorp has been on a tear last couple of months and now I have MORE (dollars) in the stock than before I took RMDs. What's a poor fella to do. Oh, yeah. Now I remember. BTD! YMMV