Probably a good day to buy

[USGrant1962]

Thoughts:

I'm actually pleasantly surprised at how well my 57/43 portfolio is holding up at only -5.9% from the peak. Basically, all I have lost is the last 4 months' gain. In prior big moves (which this may or may not be) I was in accumulation and kept buying through the 401(k), so didn't pay much attention to ebbs and flows.

I've also found it interesting how muted the losses are in terms of AA and rebalance bands. I have a nominal -5%/+6% equity band the the movement so far is nowhere near that. I'll rebalance if I hit a band, but don't see that happening in the near future.

For speculation, I'm seriously considering buying some 2022 LEAP calls on XOM or one of the Energy ETFs (with play money) if the price of crude drops much more.

 

[street]

^ I usually don't look at the accounts in times like this but I had to look to get some info to do some buying in the future. I also was surprised from just one account that it didn't look as bad as I thought it might. I didn't compare with a percent but not as bad as I thought it would be.
I'm going to buy just waiting for more of a drop if it happens. If not now I will have that dry powder ready to burn in the future.

 

[2177V]

^ I usually don't look at the accounts in times like this but I had to look to get some info to do some buying in the future. I also was surprised from just one account that it didn't look as bad as I thought it might. I didn't compare with a percent but not as bad as I thought it would be.
I'm going to buy just waiting for more of a drop if it happens. If not now I will have that dry powder ready to burn in the future.

The best way to learn about a bear market is to look at your accounts and compare with other investments. Most people don't want to look at their accounts because it is painful to do so. As a result, they do not acquire any experience. During a bull market, everyone makes money. During a bear market everyone loses money...except for a few people who understood that the yield of treasuries goes down but the value of treasuries goes up.

People should google "flight to safety or flight to quality" so people can learn about what happens in a bear market. I already did this and I was 100% treasuries when this was happening. Currently my portfolio is going up while most portfolios are going down. As the bear market continues, I will be slowing reallocating back to a 60/40 portfolio but I have avoided most of the loss of a bear market.

A bull market always follow a bear market so I have to position my portfolio to take advantage of that. I reviewed numerous funds and found a fund that lost 38% in 2008 but gained 38% in 2009. I will be investing in a fund that recovers quickly after an bear market. This is due to "pent up demand" of certain industries.

Life is good when you are ahead of the curve.

 

[street]

Thanks, and I do believe in taking advantage learning more about your holdings in bad times is a good thing. I have looked at history of my holding through good and bad and have picked the best from history from he past so I do research just don't dwell on the down times as much.
I do agree with you and is really not a responsible approach for my portfolio. I will at sometime but I don't check mine in down times like I do in good times.

 

[Time2]

My concern is not now, it is if/when the virus comes to the US.
I don't think the virus is any worse than the flu although a bit more contagious. It's not the virus that I'm concerned about, it is the media hype that affects the psychology of the markets.
I sold a little about 20% of my Vanguard accounts or about 11% of my net worth, I feel like I should pull the trigger a little more, but selling was never part of my plan at all. I was all buy and hold.

 

[Alan]

To avoid needless confusion and duplication, there are now three (and only three) threads related to the novel coronavirus COVID-19 and its impact on us.

Please choose the most appropriate thread and use it in future:

https://www.early-retirement.org/fo...ealth-and-preparedness-aspects-ii-102346.html

https://www.early-retirement.org/forums/f28/coronavirus-financial-impacts-ii-102347.html

https://www.early-retirement.org/forums/f46/coronavirus-travel-impacts-ii-102348.html


And again, it behooves us all to post in a sober and responsible manner. Factual information, with appropriate support/reference, is best. Reasonable and concrete suggestions for action are also appropriate. However, fear mongering and the promotion of rumors is not. As a general rule, before you post, ask yourself "Am I confident this is true?" and "Will this be useful to others or am I just venting?" The "hot topic" designation is turned on to give everyone a pause in which they can answer those questions.