Down Day in the Market !

FIREmenow said:
Just saw headline: "Jeff Bezos, Warren Buffett, Bill Gates lose $10B in market plunges...."

That's a lot of Lambo's!
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That's a lot of Lamborghini's. Glad I didn't leave that many sitting in the car lot. LOL
 
NW-Bound said:
In the long run, stocks have been proven to outperform other assets. So, why not be 100% and call it quit?

Obviously, one needs to have some money set aside for rainy days. But instead of having a certain percentage in cash, how about having a certain dollar amount that is tied to one's needs. Or if one has plenty of assets, there's no need for any cash.

I am thinking of an argument for a higher stock AA, not lower.

PS. There are posters who are not in the accumulation phase yet are 100% in stock.
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No, I prefer to maintain a certain risk profile. Which is why I have a target AA and rebalance. Sure long term 100% stocks outperform on average (if you don’t run out of money - 80/20 has better survival characteristics for draw down), but for me as a retiree living off of investments, longer term I’m older, more feeble, and ultimately dead. I don’t care about having the biggest pot when I die, I care more about year to year volatility. I prefer a moderate allocation with good survival characteristics.
 
Hey, W2R does not even drink! How she knows about beer? I guess from watching Frank with his beer.
 
No one thinks that someone can lose $10 billion & still be a billionaire is out of the ordinary. The concentration of wealth that people think nothing of says allot about peoples perceptions & tolerance of the financial world.
 
audreyh1 said:
... for me as a retiree living off of investments, longer term I’m older, more feeble, and ultimately dead. I don’t care about having the biggest pot when I die, I care more about year to year volatility. I prefer a moderate allocation with good survival characteristics.
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I have heirs to leave money to. So, it is not wasted if I leave it behind.

And then, as I described, if my WR is as low as 2.5% (much lower with SS), then my stash should grow. And when it grows, that 2.5% WR will also grow. Still practicing delayed gratification, you might say.

But I do not need to blow any additional dough right now. And my WR can justify 100% stock, and if I have a strong stomach, then what's wrong with the method?

Not saying that's what I will do. Just a mental exercise.
 
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Rickt said:
I thought bonds were going to rise when the stocks drop.....but why are the bond funds going down (although not as much) as well along with the stock funds?
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The bond funds are actually what are causing the stocks to decline. And what the stocks drop big the bond funds do improve a little bit. But lately once stocks settle down, the bond funds start dropping again making the stock market sell off again.

Until this recent interest rate rise settles down its going to be volatile.
 
W2R said:
Unbelievable! The Dow is UP 122 at the moment. (gobbling popcorn)
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Yeah that was a crazy swing from down >500 to up >200 in an hour! And now closer to break even.

We went immediately from a historical extreme low volatility environment to an extremely high volatility environment!
 
NW-Bound said:
I have heirs to leave money to. So, it is not wasted if I leave it behind.

And then, as I described, if my WR is as low as 2.5% (much lower with SS), then my stash should grow. And when it grows, that 2.5% WR will also grow. Still practicing delayed gratification, you might say.

But I do not need to blow any additional dough right now. And my WR can justify 100% stock, and if I have a strong stomach, then what's wrong with the method?

Not saying that's what I will do. Just a mental exercise.
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Not interested in buying business class airfare yet?

The problem with delaying gratification as you age is you are aging! And the clock is ticking!
 
At this point, I can do a lot more than business class with 2.5%WR + SS. A lot more. I need to get into a new mentality.
 
Morgan & Goldman getting those trading profits in early in the year. Churn baby churn
 
Seriously, my wife said that with the difference between coach and business seats, we can help a lot of wretched souls with our donation. And I agree.

That's the mentality that I talked about. It is easier if I had more money.
 
Caught in a dreaded down channel...
 

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Said I should sit on my hands. I will come clean now. Couldn't do that, so this morning I threw another Civic into the jaws of the market.

That's the 3rd time since the rout began. To reduce my sin, I wrote an out-of-the-money covered call out to March 16. The premium is equivalent to a new set of tires for said Civic.

I will not ask you to wish me luck. I know you all do, because if I get hurt you will too.
 
NW-Bound said:
Seriously, my wife said that with the difference between coach and business seats, we can help a lot of wretched souls with our donation. And I agree.

That's the mentality that I talked about. It is easier if I had more money.
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Perhaps, but where is the balance? We can all give away most of our money to wretched souls and get by on less. Where does it stop?

Beefed up my DAF last year, but I’ll be giving more later when I’m not able to spend so much on myself because I’m too old to travel or get sick, or whatever.
 
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