EQUITY: Sell? Buy? Stay put?

[Sam]

What have you actually done to your equity holding since August 1st, 2007?

Edit to add: Donot count the regular contributions to your retirement plans.

 

[Zathras]

Held, my dividend income has been unaffected (so far).
If I had more cash on hand at the moment, I would be buying

 

[Robert the Red]

Voted nothing, but that doesn't count my TSP regular contributions. Thinking of switching some from G fund to stocks this weekend, if the plummetting continues.

 

[W2R]

I stayed put, and I'm getting hammered. So, I am pleased with myself for not folding.

Robert, the last time this happened (in February) I wobbled a bit and sold some C, S, and I, and bought more G so that I was 40% G instead of 25%. I figure I lost several thousand by doing that at that time, instead of waiting until better times. But at least my asset allocation now is better and I feel much less stressed. I don't have the nerve to sell G right now like you, though!

I know I should, but I still haven't acquired the courage to buy at a time like this, even it's a blue light special, and such. If I wanted to, I COULD buy some taxable funds but I just haven't. The fact that I hadn't actually planned to buy probably plays into that. I had planned to build up my cash reserves right now, so I am doing that.

 

[VaCollector]

....living on dividend income w/current return of approx 5%+ ....so I have put in 50% of my cash reserves in anticipation of getting the current +/- 5% MM return rates along with the possible stock appreciation....and while I am smiling today ~ tomorrow can always affect my disposition

 

[clifp]

Not having 10% cash I voted staying the course.
My dividend income has gone up and a bought small amounts of high yield stocks.

 

[Bikerdude]

Put about 5% to work. Keeping some powder dry just in case we continue down. I'm buying mostly dividend paying ETF's so while I wait for recovery I will get paid something.

 

[justin]

I haven't changed anything. I just took a quick peek at my fidelity 401k. Looking at last 3 months purchase history puts this drop in perspective. I am now getting ~10 shares of each of FSTMX and FSEMX every 2 weeks whereas back in May I was only getting 9 shares of the same funds due to prices being significantly higher. In a way, I am buying 10 percent more, in terms of number of shares.

Since I'm essentially 100% equities, there wasn't any "dry powder" to redeploy. If I had some, I'd probably start buying a little at this point.

 

[Goonie]

This month I've been buying little by little with some of my extra 'fun' money. Just a hair shy of 10%, but will be over that within the next week. I normally just DCA most of the time, but I'm more than willing to buy during a 'blue light special' like this! I only wish I had a little more 'fun' money to toss in!

Stevie Wonder sang "What goes up, must come down", and being optimistic, I'll sing "What goes down, must come up"!

I bought!

 

[loosechickens]

We haven't sold any, but we haven't bought any either. Not because we wouldn't want to, possibly, but because we are getting ready to go off to Europe for a couple of months (fiddling while Rome burns?), and have been keeping our cash up in anticipation of the extra expenditures coming.

Not losing any sleep over this. The market goes up, the market goes down, over and over again. If necessary, we could survive another Depression, so no point in getting our knickers in a twist.

LooseChickens

 

[Moemg]

I 've stayed put .I've been through this before and it still makes me nervous .I've been swimming my nervous energy away .The more the market drops the more I swim .

 

[MileKing]

When the Dow was down 300+ points today, I sold out of everything and invested in some subprime mortgages.

 

[packrat44]

On 19 Jul 07 I decided I would sell all my equities and move the proceeds into my MM account until the jitters were over. My children flew in the following day to go backpacking for a week long trip so the transfer was put off until the return. Upon the return I found the market fully ingulfed in the correction process.

If I had made the move on time, I would be cautiosly buying at this time. Since I missed, I am staying put. Presently the value of my equities are about $200k off the high. Don't like it, but that is life.

 

[Sam]

When the Dow was down 300+ points today, I sold out of everything and invested in some subprime mortgages.

Good for you! ;-)

 

[Sam]

On 19 Jul 07 I decided I would sell all my equities and move the proceeds into my MM account until the jitters were over. My children flew in the following day to go backpacking for a week long trip so the transfer was put off until the return.

How long does it take to actually make the move? From my computer, it takes less than 5 minutes.

 

[kjpliny]

Currently 90+% in MM...staying put for a while.

 

[packrat44]

How long does it take to actually make the move? From my computer, it takes less than 5 minutes.

I am not set up to trade electonically. Still, it would have only taken 1 day. Other things were taking a higher priority at the moment. Bottom line - I screwed up. Hopefully I will have learned, then again, maybe not.

 

[justin]

I am not set up to trade electonically. Still, it would have only taken 1 day. Other things were taking a higher priority at the moment. Bottom line - I screwed up. Hopefully I will have learned, then again, maybe not.

Of course after the fact it is easy to see that you made a decision that resulted in a decrease in your portfolio. However you definitely would have been kicking yourself if you had sold 7/19/07 only to watch what used to be your portfolio go up another $200,000 while you are sitting on the sidelines.

 

[Milton]

I just keep making my regularly-scheduled DRIP purchases. Nothing exciting.

 

[Nords]

What have you actually done to your equity holding since August 1st, 2007?

July: Sold Eagle & Diana shipping stocks and started buying more of the Dow Dividend ETF (DVY) and Retail Banking ETF (KRE).

1 Aug: Rolled a maturing three-year 3.75% APY (ouch) CD into a 10-month 6.25% APY CD.
2 Aug: Purchases cleared on last KRE shares that were bought in July.
8 & 10 Aug: Sold off the last of our Tweedy, Browne Global Value shares.
13 & 14 Aug: Bought more DVY along with some more 10-month 6% APY CDs.

Also during August: paid a bunch of bills, collected a few dividends, & reinvested most of them. Spouse will get a couple hundred bucks of Reserve drill pay that'll go into her TSP.

Next month: checking estimated taxes, oboy. Maybe some charitable contributions could offset the cap gains taxes, but right now the market seems to be absorbing most of our charitable-contribution efforts.

Our asset allocation ended up here: http://www.early-retirement.org/forums/547199-post11.html . Now that TBGVX is gone we'll try to leave it like that for a year or two. Otherwise we're hoping to sit tight on my pension and the tenant's rent, or perhaps we'll sell one of the individual stocks.

The rest of Wall Street will be back from the Hamptons after Labor Day and this will all settle down over the next few months. If you're thinking about getting back in the market, consider that mid-October has started a lot of holiday rallies and the government is ramping up the economy for an election year. I sure hope nobody's saying "Coulda/woulda/shoulda" in early 2009...

 

[REWahoo]

I did what I do best: nothing

 

[Sam]

If you're thinking about getting back in the market,

FWIW, I have never left the market.

..., consider that mid-October has started a lot of holiday rallies and the government is ramping up the economy for an election year.

Thanks for the reminder.

I did what I do best: nothing

No need to brag!

 

[SecondCor521]

I did move $2K from cash into VTSMX for my kids' college today. But I would have done that soon anyway...it was sort of a discretionary buy.

Other than that and the typical paycheck 401(k) contribution, just standing pat.

2Cor521

 

[W2R]

I did move $2K from cash into VTSMX for my kids' college today. But I would have done that soon anyway...it was sort of a discretionary buy.

Other than that and the typical paycheck 401(k) contribution, just standing pat.

2Cor521

That's the cool thing about making regular 401K contributions (or TSP, in my case). We just keep DCA'ing into these funds, whether the market is up or down. I didn't even count my TSP contribution when I answered the poll.

 

[Mach]

I was waiting for a dip to buy...and the dip turned into a cliff.
So, technically I put in +20% investment during the dip, unfortunately not at the lowest point...which is to be determined.
I'm well into the red now, sad to [-]say[/-] experience.

-Mach