Only silver lining is if I get to buy it all back cheaper.
I'm curious. What is your action plan for buying it all back cheaper?
Only silver lining is if I get to buy it all back cheaper.
We're younger than you but feel the same. If "market timer" means I don't ignore the writing on the wall when inflation is 8 - 9% and the Fed says they are going to raise interest rates 7 times, them I'm pretty happy to be called a market timer. We've actually had a pretty decent year this past year, with less stocks, selling the bond funds, a pile of TIPS offsetting a low interest rate mortgage and buying more short term Treasuries and TIPS. Our goal is not to make a killing in the stock market in retirement, but if we can live well and leave the portfolio value intact in inflation adjusted dollars for our kids, I would be happy with that outcome.
I'm curious. What is your action plan for buying it all back cheaper?
Timing the market? Yes - 30% of it. I've merely sold 30% hoping to avoid fun. 70% - is still in place, waiting to lose more value.
I won't try to call a bottom. S/P 3750 I'll start buying ....and keep buying in increments if it keeps going lower.
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Looks like you sold at a good time. It's below your threshold! Are you going to take step 2 and buy back in? You can do it!
Good luck
Maybe I didn't read this entire thread closely but I thought you were looking to buy the index when it reached your threshold and thus lower the risk of the portfolio somewhat. I was surprised to see the stock list and that you bought back into them.
You have much more courage than me. Good luck.
Actually, not brave. I wasn't brave enough to leave 100% of my allocation in place to get butchered. I shielded 30% of it.
The companies I bought back - measured amounts - I feel will be fine long term. Just wanted to save myself. some money, and so far the math shows $40,000 in losses avoided - man I could use $40k.
I think that owning individual stocks at this time may be favorable to holding SPY...just not sure which stocks to buy.
It seems like whatever fund or index you buy, its value is concentrated in the same few tech stocks. Not a healthy situation.
It seems like whatever fund or index you buy, its value is concentrated in the same few tech stocks. Not a healthy situation.
I think that owning individual stocks at this time may be favorable to holding SPY...just not sure which stocks to buy.
I don't think so. I own two dividend index funds - Vanguard High Dividend Index fund (VHYAX) down 8.5% YTD and Schwab US Dividedn Equity (SCHD) down 11% YTD, both doing much better this year than the usual S&P 500 or total stock market index funds. That usually the case as sectors rotate in and out of favor. The tech names in the S&P 500 will rotate out as individual companies move up and down. At one point in time companies such as IBM and GE were top holdings in the S&P 500, they are way down now. Nothing ever stays the same.It seems like whatever fund or index you buy, its value is concentrated in the same few tech stocks. Not a healthy situation.
Had sold off 800 KO shares at 61.98 - bought it all back today for $55.00
Have no idea if it's the bottom - but pleased with the $5,500 in losses I saved.
Sure.
Just be sure to account for all your winners and your losers, tax effects, and adjust for risk.
As an example, how much more would your cash have made in the market this week? As a rough example, suppose you had $100K in a high yield savings account paying 2%. The S&P500 is up 4.3% this week. Not being invested would have cost you $2,300.
As another example, had you held KO, you would have had a loss of $5,500. But you probably would have federal and perhaps state tax savings of $1,000 or more. Sure, better to avoid the loss entirely if you can, but you should include the tax benefit in your accounting; it's real money that spends just the same.
Yes, I'm cherrypicking. But I think you may also be doing likewise. Cherrypicking distorts perception from reality and can lead to sub-optimal decision making.
Cherry picking, questioning - all is great and I appreciate it.. I think when one doesn't wish to be questioned, or a philosophy doesn't like to be questioned - its not investing - it's religious.
Yes, could have had Federal Savings on $5,500 in losses. But the tax savings - would be 15% - the long term cap gains rate? So that would've been roughly $825 in savings. Oh, I also lost approx $344 because of Div-Ex. So if I pretend the Dvs are non taxable just to make it easy:
$5,500 in losses prevented.
-$825 in tax loss credit - maybe.
-$340 in divs forfeited.
Won't add in the month's worth of bank interest- not much money.
Still feel it points to a savings, whatever one can call it of $4,335.
Glad it's reinvested. Even if it goes down more, this one has usually been ok in the end.
(The cash generated from selling KO spent a short time in an E-TRADE bank account earning 2% on an annualized basis.)
New position - used some of the cash generated - Uber at $25. Usually this kind of company - not my cup of tea. So just a small position.