In the market or out?

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Have you sold it all or riding it down?


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CoronaBorealis

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I am actually trying something different during this "crash". I am contributing to a cash account instead of the fund I was in and sold off when Biden was elected. I am going to try to catch it close to the bottom and on the way back up. Those who dollar costs average usually have a better return than those who try to time the market.

But timing the market is exactly what you’re trying to do.

No one “loses” anything until they’ve cashed out. If you buy 10 shares at $10ea, you are in for $100. If the Market drops to $5/share, you still own 10 shares — you haven’t lost anything. You only lose the $50 if you sell at $5/share. I’m 40 this year and pouring more money into my 401k/IRAs than I ever have.

My investments are straight SP500 index funds. Nothing fancy. I have a co-worker who was invested pretty heavily into crypto. I kept asking him to explain how that was a viable investment, and I never got an answer I was satisfied with. He lost his shorts. Crypto is nothing but a pyramid scheme. I won’t tell him “I told you so”.

Don’t look, keep saving, and don’t try to time the market. Slow and steady wins the race.
 

SlugSlinger

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But timing the market is exactly what you’re trying to do.

No one “loses” anything until they’ve cashed out. If you buy 10 shares at $10ea, you are in for $100. If the Market drops to $5/share, you still own 10 shares — you haven’t lost anything. You only lose the $50 if you sell at $5/share. I’m 40 this year and pouring more money into my 401k/IRAs than I ever have.

My investments are straight SP500 index funds. Nothing fancy. I have a co-worker who was invested pretty heavily into crypto. I kept asking him to explain how that was a viable investment, and I never got an answer I was satisfied with. He lost his shorts. Crypto is nothing but a pyramid scheme. I won’t tell him “I told you so”.

Don’t look, keep saving, and don’t try to time the market. Slow and steady wins the race.
You are right about trying to time the market, I am. And you’re right about the dollar cost averaging, slow and steady comments, that is how to grow wealth.

I have been dollar cost averaging for almost 27 years at this point and have been successful with growing the investments. In 2008 I rode out that crash, but moved my investments from the S&P fund I was in to a more aggressive growth fund and grew the investment faster than it dropped. We have been in the longest bull market in history and the aggressive fund has returned good growth. However, riding out the over a 50% drop in the value of my investments was a tough, but came out the other side in a much better financial position.

With the knowledge of the 2008 crash, I saw the same thing coming with the crazy ass liberal in office now, but didn’t realize it was going to be exponentially worse.

I sold most of my investments (other than my energy stocks) when the current administration was inaugurated. The primary fund I was in, that is tech loaded, was $24 when I sold most of it, the fund increased to $27 the following year before dropping to $18 today.

I sold when the investment was going up, most people were buying (the reason for the market going up). And when everyone is selling or have finished selling, I will be buying.

For those who are young and growing their nest eggs, do exactly as you describe, that is the best way to grow wealth. However, once wealth is accumulated and retirement is around the corner, it’s time to consider other ideas, divestitures, and mitigation of risks.

I’m afraid the recovery from the current financial disaster will be longer than the 2008 scenario. However, this is the best time to be buying and where the dollar cost averaging dynamics come into play and add tremendous value to the portfolio over time.
 
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Michael M

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I’m retired, but I’m doing some side consulting and inspection gigs.

My retirement portfolio is in 3 categories. Equities, ETF index funds and cash & cash equivalents. I’m drawing from the last one, so I’m not selling anything right now to draw a monthly income, so as far as I’m concerned this crash isn’t really impacting me immediately. What I am doing is continuing to draw, but my side income is going into the market. It’s a fire sale, I’m buying. I wish I was still working so I was buying every 2 weeks.

I asked my guy how he wanted to do it, and he said we could still make the regular draws, and invest the new income and that was a better option.

Damn if I know, but I don’t worry about it. I’m paying him to worry about it. If I don’t make money, he don’t get paid. I’m down with whatever he wants to do. I figure what’s good for him is good for me.
I have been retired for 2 years and on my 401 moved to Stable before the crash.
Didn’t lose any money but not making much return.
As far as the money I have it’s in Money Market, CD’s, Annuities, and cash.
My SS takes care of my monthly expenses.
My advisor has been helpful in keeping my money safe.
 

cowadle

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Pumping it up before the elections.


i have been reading jerome's speeches and reading the fomc minutes. in july after the fomc jerome told reporters that he believed the inflation was neutral but in the release of the minutes from july meeting in august was revealed that was a lie. the minutes stated that the fed was worried about inflation and was committed to hawkishness. the results were a market surge bubble on the news release of the speech and a crash on the release of the minutes. interesting isn't it? then there is the crash of the brit sterling driving the dollar higher???? wow
 

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