I have been through a number of downturns. This one is complicated. In the short term I'm not buying the dip as many investors have in the past after a correction. I definably would not buy on margin. I have a lot of cash but am holding for now. I balance allocations usually once a year. I might look to doing that sooner. It's not just the virus scare or even the supply chain scares that may not be much more than an excuse. We have an election that is also complicating a market priced for perfection. China's GDP imploded over the weekend. That should work in our favor. I don't expect much from a .25 drop in interest rates this month. I believe we should keep the dollar strong. I think we will know better what the democrat side of elections will be after Tuesday. I'm not too worried about Sanders but it is another uncertainty that is making hedge fund traders crazy. With 2.5 trillion or more in assets, their computer algorithms are causing much of the wild volatility. Retail investors are for the most part just along for the ride.
Don't tell me what I will do based on what you will do. That's just ignorant to assume what I will do. If it starts to gain and it looks like something more substantial than a one day thing I will get back in. I am very active in monitoring my funds so to just assume that you know what I will do is arrogant.
The company I deal with has the option to work just like that. I can set prices for sell or buy automatically. I don't use them usually but it gives me a fail safe just in case things go bad and I am not watching.
I haven't logged into Charles Schwab, and I don't really want to. Things will go back up, and my 401k will be fine. The same is true for my actively managed portfolio, but anything I do will be with that, and it'll likely be buying. I'm not selling after a week off speculation from a virus that shouldn't be that big of a deal. I was watching options on a couple stocks on Friday, and the changes in premiums make me think we'll see a turnaround.
How are you handling the market crash? Hoping it goes down a little more then hammer Fannie Mae Preferred stock (FNMAS). With rates guaranteed to be cut, maybe even a half point then this will make a great Christmas present. Also look at Birchcliff Energy. A Western Canadien company that will benefit from a more conservative Senate and House of Commons.
I am sure that he was just making a general generic comment that can apply to most anyone in such a situation. If you habitually get in a snit when people respond to the details in your posts you may want to take up another hobby instead of telling your secrets on the internet.
A lesson that I have a problem with. It's hard for me to cash in those winners. I've been lucky so far because the markets have been bouncing back. This time does feel different and I may take a little off this morning. Most of mine are up a little pre-market. The VIX is down just a little (3
I do agree. I have never met or seen anyone get it right all the time. I do however enjoy listening how some are approaching this market. Sometimes I need a different perspective. If my way has me down 8.5 % maybe I need to pay attention what others are doing,
You may be onto something with FNMAS. Worth watching what the Fed will do. That dividend in BIREF would have me concerned. Never really been a player in pink sheet stocks. Then again it only takes one. Only spec stock I'm playing now is ERIC. I am looking at AQST. They report earnings Mar. 12. Thx for your input Seal Team V.
He was literally telling me what I was going to do. It was his third post where he told me what I was going to do.
I apologize if my post came across as arrogant, that was not my intention. My posts were intended to help people, by pointing out the follies of market timing. You still, however, didn't answer my question as to when you know to get back in. "I am very active monitoring my funds" is not an answer. In fact, it leaves you open to emotions as to when to get back in, just as you acted on emotion (fear) getting out. Emotions and investment are not a good mix, in fact, emotion tend to lead to herd mentality. Ask yourself, when you sold last week, were you the only one? Or were you one of even millions, all selling because of fear of a large portfolio drop? If you market time at all, then at least do not follow the herd, but rather act contrarian: "Be fearful when others are greedy and be greedy when others are fearful". If you want to get more info on the buy and hold approach, and how acting on emotions make investment returns worse, check out bogleheads.org. The people on that forum have given me invaluable investment advice, based on Jack Bogle's philosophy, and all for free. I am trying to pay it forward, that's why I am writing these posts.
didnt look at my balances until last night,, I was afraid to. only lost 11k, very surprised. (in a good way) interesting enough. that 11k was all made in the last 60 days, give or take.
Buy low sell high sounds great in theory. Except that nobody has figured out how to do it. And the ones who claim that they know how to do it were just lucky. . The vast majority of people, in their zeal to buy low and sell high, end up doing the exact opposite.
Well, so far so good in the market today, I know its super early, but at least i'm not staring at -800, I can deal with -13 I think we plan on riding it out but I have concerns that if there is a bad week news wise that we'll see another big dip, I'm hoping the big drops last week were taking this week into consideration, which I believe is typical. The question I have for myself is this: IF I had pulled out into cash a week ago and missed this drop, WOULD I be getting back in right now? In theory if the answer is no (and it probably is) then I probably should be getting out, so its a bit of a quandry. edit: since I started this post, it went from -13 to +149, stocks be crazy!
It looks like the markets will continue to drop until their is some clarity on the impact of this new virus on our economy. A Fed rate cut is overdue.
No one can time the bottom, but you can cash in big gains. Incremental buying after steep drops is the best you can do. Pinch the falling knife all the way down - never try to grab the thing.
How are you handling the market crash? I've jumped out of the window 3 times already. Thank God I'm on the first floor.