Ed_The_Gypsy
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
THIS is why I am 50/50 US/foreign.
Actually, I was in hospital with appendicitis the week of the crash, so my corporeal stomach is rather unsettled, but my financial stomach is quite calm.
I did my research years ago and picked asset classes that I am comfortable with for the long run (mostly index funds). I rebalance every year or so. I pretty much ignore wild rides like this. (I did add a few grand to the Vanguard Energy Index this week. Too cheap to pass up. ) I am only concerned with ten-year stretches, but I am starting to build a 5-year CD ladder. If I retire in 5 years, OK. If I continue to work, I just buy another CD.
You, too, can sleep well:
1) Choose asset classes as uncorrelated as you can that pay. (There are many uncorrelated asset classes that don't pay well in the long run.)
2) Fund them in reasonable proportions.
3) Rebalance every year or two.
4) Expect downturns that may last as long as 5 or 10 years.
You don't lose money until you sell. I am down a fair amount, but I haven't lost a cent. I am still way ahead of where I was 6 years ago. I expect my poke to recover and more.
Don't panic.
Gypsy,
with a positive report on Alberta Health Care's emergency service.
Actually, I was in hospital with appendicitis the week of the crash, so my corporeal stomach is rather unsettled, but my financial stomach is quite calm.
I did my research years ago and picked asset classes that I am comfortable with for the long run (mostly index funds). I rebalance every year or so. I pretty much ignore wild rides like this. (I did add a few grand to the Vanguard Energy Index this week. Too cheap to pass up. ) I am only concerned with ten-year stretches, but I am starting to build a 5-year CD ladder. If I retire in 5 years, OK. If I continue to work, I just buy another CD.
You, too, can sleep well:
1) Choose asset classes as uncorrelated as you can that pay. (There are many uncorrelated asset classes that don't pay well in the long run.)
2) Fund them in reasonable proportions.
3) Rebalance every year or two.
4) Expect downturns that may last as long as 5 or 10 years.
You don't lose money until you sell. I am down a fair amount, but I haven't lost a cent. I am still way ahead of where I was 6 years ago. I expect my poke to recover and more.
Don't panic.
Gypsy,
with a positive report on Alberta Health Care's emergency service.