For the first time ever I sold all my stocks

[Jerry1]

When someone says, 'Best of luck', usually means they're 'done' with their opinions on the issue.

And then sometimes they just mean that they wish good luck upon someone - the best of luck. That's one thing about forums, written communication, there's no good way to communicate nuance.

 

[COcheesehead]

And then sometimes they just mean that they wish good luck upon someone - the best of luck. That's one thing about forums, written communication, there's no good way to communicate nuance.

+1

 

[aja8888]

One thing about these forums, a lot of members here are not 69 or older and may not understand the thought processes or concerns when you are seeing the light at the end of the tunnel getting dimmer.

I'm going to be 77 soon, and in good health, but I had a few glimpses of "lights" out in the last few years, but got by the issues. Having a good night's sleep is one less worry.

 

[Sunset]

Well, we are loss-averse little mammals. The behavioral finance and behavioral economics folks tell us that. So it is probably a matter of perceived relative safety between insured and not-noninsured. Non-insured looks more risky than insured, never mind that both have very low absolute risk and very low risk relative to the alternatives that we confidently invest in.

That's why Thaler called his book "Misbehaving."

True.
However, having a house burn down is pretty unlikely, has not happened to me or any of my friends.
Yet, I still waste my money on house insurance, like a lot of people.
Still if anyone asks, I suggest they get house insurance..

 

[MrBig1]

I don't post much mainly because I don't feel like I know enough to advise someone how to invest. I only wanted to say that the OP did what made her feel comfortable. I can understand and respect that. I'm 64 years old and never plan to draw from my investments. I'm still and will remain 100% in equities because over the long haul I've seen nothing that gives better historical returns. My opinion is really the only one that really matters to me and the OP's should be the only one that matters to her.

 

[pb4uski]

MrBig, you may not post often but you post well.

 

[enjoyinglife102]

Well that was interesting to read through. Good for you OP! Bottom line is whatever is best for you. What someone does with their stash of cash is a conglomerate of so many different studies, "rules", probabilities, behavioral tendencies, history, personal preferences, etc... Right or wrong doesn't exist. All I know is my sole goal is to do what I think is best for my wife and me to be able to choose the life we want to live. For us in our early sixties, return of capital is far more important than return on capital. 20/80 mix of equity income fund, intermediate investment grade bonds. We've won the game and enjoying life; experiencing anxiety producing huge swings of our net worth are not part of that enjoyment.

 

[Mountain skier]

Well that was interesting to read through. Good for you OP! Bottom line is whatever is best for you. What someone does with their stash of cash is a conglomerate of so many different studies, "rules", probabilities, behavioral tendencies, history, personal preferences, etc... Right or wrong doesn't exist. All I know is my sole goal is to do what I think is best for my wife and me to be able to choose the life we want to live. For us in our early sixties, return of capital is far more important than return on capital. 20/80 mix of equity income fund, intermediate investment grade bonds. We've won the game and enjoying life; experiencing anxiety producing huge swings of our net worth are not part of that enjoyment.

Agreed. we are 59, AA 10/90...sleep better now...retiring this Friday

 

[targatom2019]

^^^^ you can be 0% to 100% in equities and still be able to sleep like a baby....

Congrats on retirement !!!!!

 

[sergio]

We were going to start contributing to our Roths next month ($2k/month starting in June to get $12k in December) but decided to hold off and keep the cash. Also, my monthly HSA contribution of around $600 is now going to money market, rather than being invested. We are trying to stockpile as much cash as possible going into the fall/winter.

The market has somehow miraculously bounced back after a 35% fall, and is within 10% of the all time high we hit in February. I don't get it. I'm not convinced that we're anywhere done with the economic ramifications of the 3-month shutdown, given that states are just beginning to open up now. The economic damage here has been devastating. Any restaurants without a drive thru have been decimated. Stores/malls are bleeding money. Airlines/travel/hospitality/tourism are going to be in dire straights for at least a few years. The oil industry is in huge trouble. How the heck are we "within 10%" of the all-time economic high of February 2020

 

[Jerry1]

Any restaurants without a drive thru have been decimated. Stores/malls are bleeding money. Airlines/travel/hospitality/tourism are going to be in dire straights for at least a few years. The oil industry is in huge trouble. How the heck are we "within 10%" of the all-time economic high of February 2020

Look up the major indexes and you will not find any of the industries you mentioned above to be major components of the index. For example, five companies make up 20% of the S&P. See article describing the narrow breadth that currently exists.

https://markets.businessinsider.com...uture-returns-effect-market-2020-4-1029133505

So, yes, there's a lot of pain out there but there has also been a shift to some super mega stocks.

 

[sgstaley]

At nearly 70, I believe I would do the same thing, and stay out.

At 55, I still need some gains.

I am ten years your senior. I am not ready to get out yet. There is still plenty of money to be made.

 

[gayl]

I can't get out of my own way. I was up as high as 90% equities at the beginning of Shelter in Place but then had a 'minor' panic attack and sold equities that i had a 100% profit on which was a huge portion of my IRA & Roth. But as of this morning I'm back to 87% equities, 8% cash, & 5% bonds. Seems all I did was lock in an eventual 5% drop.

No idea what to do with the 8% cash. I've got two 2021 and part of one 2022 cruise covered with Future Cruise Credits. Guess I'll pay off kids student loans but that's only 16k.

Others hoard TP / I hoard stocks & cash

 

[Time2]

It is pretty easy to support the idea that if you have enough, "why put it at risk" That said, we have enough and we still have a good deal of it at risk.


I have very little in bonds, because as I approached retirement, the rates seemed so low that I wasn't interested. Now I learned that the anti-volatility effect of having bonds in your AA, didn't work in this particular correction.

 

[njhowie]

Now I learned that the anti-volatility effect of having bonds in your AA, didn't work in this particular correction.

My anecdotal evidence suggests otherwise. My portfolio headed a good amount higher with AA of 2/98.

Likely depends on what bonds were held.

 

[pb4uski]

I dunno... it looks to me like bonds did their job. Blue line is 60/40 portfolio, red line is bonds portion (Vanguard Total Bond Market Index Inv).

 

[Fermion]

Well, when you posted this on May 11th (I guess the day you sold was then), the SPY was 290.

Today it is 300 (303 pre-market), so your move has cost you about 3.4% in missed gains...about a year of living expenses.

Win some lose some

 

[clobber]

Win some lose some

And OP has been sleeping well every night.

 

[Toocold]

And OP has been sleeping well every night.

The problem is at what point do you go back in and will that cause sleepless nights?

 

[njhowie]

The problem is at what point do you go back in and will that cause sleepless nights?

It's not a problem if you didn't intend to ever go back in.

 

[Toocold]

It's not a problem if you didn't intend to ever go back in.

I suppose 100% cash or cash equivalents is a AA strategy, as long as you don't need any future growth.

 

[njhowie]

I suppose 100% cash or cash equivalents is a AA strategy, as long as you don't need any future growth.

Capital Preservation is a valid investment objective.

 

[pb4uski]

It's not a problem if you didn't intend to ever go back in.

Exactly.

• FIRECalc with pension and SS and 60/40.... 100%
• FIRECalc with pension and SS and 0/100.... 100%

• Spending at 95% success rate with 60/40.... 141% of target spend
• Spending at 95% success rate with 0/100.... 120% of target spend

So I don't really "need" equities... I will likely get back in at some point that I am comfortable that valuations are consistent with fundamentals but most likely through options rather than direct investment.

 

[clobber]

The problem is at what point do you go back in and will that cause sleepless nights?

OP may have no need to get back in.

In my own case, I would say when the VIX gets back close to 20 (its not THAT far away). Just something to reflect more normalcy. Sure - that inevitably means the S&P will be higher than it is today. But at least volatility will be somewhat historically normal.

 

[Rianne]

We've not sold and are re investing the dividends. Our RR over time should be better than before the lock down. Am I right pb4uski?
Edit: I did sell some International but not all. Re invested in a different stock index fund.