gayl
Thinks s/he gets paid by the post
Right now I'm trying to build cash for bargain hunting by accumulating SPY dividends (average purchase price = 142). And I won't sell
Call it market timing, but it makes perfect sense to me. If you've enjoyed the ride up, and have more now than you planned and hoped for, why not take your gains and sit out the next hand?
Or, to put it another way, it sounds to me like the OP has won the game and decided not to play anymore.
I'm not there yet (still more greed than fear) but I can relate. And I did use the excuse of taking out some of my unexpected gains when I rebalanced recently to be a little more conservative.
[CRABBY OLD LADY]
We all know how to make money in either an "up" market, or a "down" market. Remember those "blue light specials" back in 2008? Some of our members made a killing. If the market crashes again, most of us will end up wealthier than if it didn't............
[/CRABBY OLD LADY]
What is a "blue light specials" , as I wasn't around in 2008. Which also suggests there will always be fresh meat for the grinder..
... get out before the worst days and get in before the best days...
U.S. stock funds in aggregate have suffered outflows in each of the past three years, according to trade group Investment Company Institute, a sign of mounting skepticism about the stock market’s steep climb.
he dipped his toes into investing shortly after college. After taking advice from CNBC, he said he invested small sums in bank stocks in 2007 and 2008, watching his small investment shrink during the ensuing crisis. “It was a good learning experience,” he said. “Now I’ll invest only in things I understand.
I’m 10 years from retirement, so I’m being more cautious,” said Jeffrey Lee Schantz, a 58-year-old architect in Boston, who has put what he considers to be his nest egg into “very conservative investments,” including fixed-income funds.
The most dedicated buyer of U.S. shares has been the companies themselves. Corporate stock buybacks started ramping in 2009, hitting a record of $572 billion in 2015, before leveling off, according to data from S&P Dow Jones Indices.
Looks like you've identified the perfect market timing system.
Does it have arrows? We need buy and sell signs.Looks like you've identified the perfect market timing system.
The "blue light specials" were when stocks plummeted downwards in share price (due to the crash), so you could buy them cheaply, as though they were essentially on sale!
We called this a blue light special, after the ones at K-Mart where they have a low sales price on something for a few minutes, and flash a blue light in that aisle to let everyone know.
What is a "blue light specials" , as I wasn't around in 2008.
I don’t believe in trying to time the Market and I’ll probably miss gains but the unfounded ‘Market Exuberance’ got hold of me; Yesterday I sold all my 401k equity funds (S&P, Large Cap, International). I’ve been investing so long it is more money then this guy from very humble beginnings could have every imagined. It makes me nervous just transferring it.
I have a spreadsheet that used yahoos free stock quotes to get updated prices. Click a button and bam I know where I stand. Yahoo decided to no longer offer the service. Two days ago I manually imputed prices and took a look where the Mrs and I stand. Crazy number and with all the crazy ness in the world ..well fear set in.
Hope I’m wrong...
Truthfully, it seems pretty easy to me to know when to sell and get out of the market. I was one of the "geniuses" who did so before the 2008 crash, although there were a few extenuating circumstances.
But what is hard (if not impossible), at least for me, is being able to get back in. I was paralyzed for years, waiting for the second drop or the rampant inflation or deflation, or whatever. I eventually got back in right around where I got out, resulting in a wash. If I hadn't done anything at all I'd have still been in the same spot by then.
If I could have bought at the bottom I would have nearly doubled my net worth, but I couldn't do it. And I know some people that waited well beyond where I got back in, resulting in an overall significant loss.
So unless you have a plan, I suspect you are just panicking and will end up regretting this move. If not, congratulations. But I'll wait and see how that works out for you.
Hmmm. Corporate taxes cut by over 40%. Profits will increase. Many large fortune companies giving employees raises and bonuses. The employees will spend adding profit to the companies they spend at.
Many corporations announcing additional investment in the USA.
Seems like we have a way to run in this market.
Everyone has a plan 'til they get punched in the mouth. I worry about the fist I don't see coming.Hmmm. Corporate taxes cut by over 40%. Profits will increase. Many large fortune companies giving employees raises and bonuses. The employees will spend adding profit to the companies they spend at.
Many corporations announcing additional investment in the USA.
Seems like we have a way to run in this market.
Invest in companies that provide something essential and necessary. Only buy them at a reasonable valuation. Only withdraw the dividend income. Do that and there is no reason not to always be 100% invested.
You can buy MLPs with 8% yield, utilities with 4%, telecoms with 5%, reits with 6%, etc. Maybe it doesn't beat the S&P 500 in total return, but who cares. If you can live off of the dividends you are set.
My dividend income from my brokerage account is up to $27.5k in qualified divs. That's enough to cover the bare bones living expenses. At $35k I'd be set. Shouldn't take too much longer to get there.