As most of you, these last few days have obliterated my portfolio. I am down roughly $40K, which for me is significant. I had only started investing about 6 years ago, with a long term portfolio goal of monthly dividend income.
But even then, I remained mostly in cash. Due to fear, ignorance, lack of full comprehension of the market, risk-aversion... Pick one or all of the above.
In the past, I always told myself "The market is at an all-time high... I can't wait for another 2008 so that I can go all-in!". And this was another reason why I accumulated a lot of cash.
Well, we just went through something similar (although I was not invested in 2008 and I have no real first-hand experience to make such comparison) and guess what? I am in full panic mode.
But I have not sold anything... yet.
I am in my early 40's, with about $500K in cash (earning nothing, I know...) and $100K in the market... which is now more like $60K.
Unfortunately, most of my holdings were high dividend plays that have now been severely beaten. But my largest holding is T.
As of this writing, I am almost paralyzed. I could drop 50K in the brokerage account today and buy things like Amazon, Netflix, Apple, etc... but my anxiety and fear are paralyzing me. I do not believe there has been a similar situation in the past that we can use as reference. Way too many variables are combining in a deeply negative way.
For those who went through 2008, please share your stories of fear, anxiety and panic. Did you sell? Did you stay in? Did you do anything at all? What would you recommend somebody in my shoes do at this point?
But even then, I remained mostly in cash. Due to fear, ignorance, lack of full comprehension of the market, risk-aversion... Pick one or all of the above.
In the past, I always told myself "The market is at an all-time high... I can't wait for another 2008 so that I can go all-in!". And this was another reason why I accumulated a lot of cash.
Well, we just went through something similar (although I was not invested in 2008 and I have no real first-hand experience to make such comparison) and guess what? I am in full panic mode.
But I have not sold anything... yet.
I am in my early 40's, with about $500K in cash (earning nothing, I know...) and $100K in the market... which is now more like $60K.
Unfortunately, most of my holdings were high dividend plays that have now been severely beaten. But my largest holding is T.
As of this writing, I am almost paralyzed. I could drop 50K in the brokerage account today and buy things like Amazon, Netflix, Apple, etc... but my anxiety and fear are paralyzing me. I do not believe there has been a similar situation in the past that we can use as reference. Way too many variables are combining in a deeply negative way.
For those who went through 2008, please share your stories of fear, anxiety and panic. Did you sell? Did you stay in? Did you do anything at all? What would you recommend somebody in my shoes do at this point?
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