Posted on 02/27/2020 2:25:45 PM PST by fightin kentuckian
Like many Freepers I have a significant IRA account in the stock market. The last couple of weeks have been absolutely brutal and I've watched my IRA shrink by.... A LOT. I'm dying to hit a liberal so damn hard right now. This is frustrating as all get out.
I'm torn, part of me says "ride it out, the market will come back, be cool. It'll turn around in a day or two" and another part of me thinks that this corona scare downturn isn't near bottom.
How are you Freeper, in the stock market, handling this? AND for you Freepers who keep your money in your mattress, thank you but keep your comments to yourself. I'm looking for constructive comments here.
It will come back...with a vengeance.
This Corona virus thing will fade in a few months. Unless, you need your money today just ride it out. A balanced, diversified and hedged fund will come out on top over the long haul. If you have balls this is the time to buy! Keep about a years expenses in cash (CDs, Money Market Accounts) etc. The real losers are those who panic.
If you are 60 or younger, it is a no-brainer to leave it in. If over 70, it’s going to be a lot tougher decision.
If you are retired or with in five years of retirement, why is your money not already moved to something with low growth but very steady value?
Long Treasuries (10-year plus) are only yielding roughly 1.25 - 1.3%.
I suppose that’s better than some EURO T-Bills that are yielding NEGATIVE percent (still trying to figure out why anyone would buy those)..and better than your portfolio taking a hit like we have this week..but still not a place that’s going to generate the type of returns needed to live on in retirement..
And for all you “Sit tight and wait it out, it'll come back”, crowd, I seriously couldn't care less what you have to say, save your breath.
This Corona virus thing will fade in a few months. Unless, you need your money today just ride it out. A balanced, diversified and hedged fund will come out on top over the long haul. If you have balls this is the time to buy! Keep about a years expenses in cash (CDs, Money Market Accounts) etc. The real losers are those who panic.
This too will pass. I’m standing pat with no changes.
I follow this guy: Ulli, the ETF Bully. He uses a 39 week moving average as a risk on/risk off trigger.
www.theetfbully.com. Also sumgrowth.com for automatic ETF switching using signal processing algos.
You are a wise person. An acquaintance of mine, late in life and now deceased, got hooked on reading his quarterly investment fund statements in the lead-up to the 2008 debacle. He was not able to recover his losses.
DW and I both thought POTUS "missed an opportunity" to calm the masses last night. Not sure if it was because he was tired, getting off a brutal flight back from India or whatever, but he was off the mark in the begging of his presser, IMHO..he got better once he got back to "being Trump", but the part where he was free wheeling from his notes was pretty brutal and (obviously!) did not reassure the markets.
I’m invested in VAIPX (Vanguard). When stocks go up, it goes down, and vice versa. It’s doing well this week. When it begins to drop, I know the market will begin to go up.
Lots of us are in the same boat.
If you sell now you lock in your losses.
If this pandemic is the end of the world, then money and stocks won’t do you much good anyway.
You may want to consider lessening your position in stocks by 25-50 percent. At least if the market returns then you can get back some of what you lost.
But if you don’t need the money right now then probably best to ride it out.
Stay the course. The market always overreacts to any crisis.
Things will turn back around in short order with our President in full command.
This is an Ebola. Do you know anyone who got Ebola?
The market loves President Trump. It reacted positively before he was even inaugurated.
As we get closer to November, with the President’s obvious landslide looming, expect even bigger gains than what we have seen. The President will be free to be even bolder with policy.
DW and I both retired last year, so this drop couldn’t have come at a worse time. Fortunately, we’re very diversified with only about 25% of our portfolio in the market and the rest in CDs and bond funds generating dividends..
That said, we’re absolutely taking it up the hiney this week. It’s been absolutely BRUTAL - and also totally illogical.
I do think much of the drop in the DOW, S&P and NASD is politically driven, and suspect Soros and others are doing whatever they can to throw gas on the fire. (Witness yesterday - Dow up > 450 until they threw the gas on the fire with the FDA guy’s statement..then down 123, then total collapse today).
Market activity this week does convince me beyond ANY doubt that things are being manipulated HEAVILY. Even today..down “only” 250’ish at one point..then, total collapse..on NO NEW NEWS.
THAT. SIMPLY. DOES. NOT. HAPPEN. in a “normal” market environment.
Hang tight..there are obviously forces (Soros? Dems trying to take out Trump?) at work here.
They’ve done their best to start a stampede. The only question will be..will it work, and just about everyone and their brother will panic and sell? Or, will smart investors realize stocks are “on sale” and buy?
I suspect it will be the former in the short term, as the sheep completely freak out and panic..and the latter (recovery as smart investors buy stocks on sale) over the weeks to come.
Yeah. Join the club. Scumbags in China and the demonrat party are staging this.
Absolutely...And the same can be said for any investment depending on the time frames available to each investor for recovery. Your comment regarding liquidity is very important. Best to have as much liquidity as possible to underwrite any risk taking.
That’s a really good idea. Thanks for that.
If you are watching your account minute-by-minute you are an idiot and deserve to buy high and sell low all your life.
One of the best investors in history, a female, Hettie Green by name, was an expert at picking up equities in a panic sale. Always kept ready cash for when opportunity arose.
https://en.wikipedia.org/wiki/Hetty_Green
Hetty followed a contrarian investing strategy, in her words, “I buy when things are low and nobody wants them. I keep them until they go up and people are crazy to get them. That is, I believe, the secret of all successful business.”
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