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.
When it goes down, purchases are cheaper.
Just pay attention to stocks that are particularly vulnerable to real loss and won’t rebound when resources become available again, like life insurance.
Just made my IRA contribution for the year (2019). Stocks are on sale/buy when there’s blood in the streets.
What were the values a year ago, and three years ago?
A while back an old man suggested I cash out my 401k and IRA back in 2008 and buy a farm. But I told him it was my retirement money and he said but until then it’s just a piece of paper until then. He suggested I Buy a farm with balanced woods and fields and until then it’s a place to look at stars at night, hike, ride my at, and hunt. Beat decision I ever made.
“I saw a ton of ENRON owners ride it out...to the bottom.”
The Nikkei (Japan) peaked at 37,000 in 1990. It then dropped below 8,000 is 2003. The highest they’ve been since is 23,000, and that was just before Coronavirus (now 21,000). So, in 30 years, they never came close to their old peak, and that is WITHOUT even factoring-in inflation. Lots of retirements come and gone over that time.
The idea that stocks will ALWAYS go up, in the long-term, is similar to the thinking about real estate, going into 2008. Nothing is ever a sure bet...
“Be fearful when others are greedy and be greedy when others are fearful”
Warren Buffet
No, we wanted to pay $2 for a light switch that worked for 3 years rather than the $2.25 that worked for $6. Penny wise and pound foolish
Well... I’m sorry, but a correction has been due for a long time. If you thought the market was going to continue going up and up, you were living in a fool’s paradise.
My financial advisor, no liberal he, advised me 6 months ago to shift a ton of assets into low risk investments. And I did.
I tried telling friends that a correction was coming and to prepare for it. I was told I was a disloyal American (which, if you know me, is beyond absurd and insulting) for pointing out clear market indicators.
So: it’s here, and it’s going to get worse before it gets better. I am having a call with my financial advisor tomorrow morning just to go over again how things will weather and how our plans will shelter most of my money. My only advice is to shift to safer investments if you can, while you can.
I, for what it’s worth, applaud your decision. It sounds like you also have access to basic subsistence and space—priceless IMO.
Well you are certainly not a disloyal American and everyone i know who invest in the market daily was expecting a correction but if you shifted your money 6 months ago , you may not be any better off as the Dow was at the same place 6 months ago (actually lower on 8/27/19 than today 2/27/2020!) even after this big drop-maybe safe harbors are what you can risks and one certainly feel better in a down week or month but you miss most of the gains.
What is different now is this Coronavirus panic, of course we had SARS and Ebola. If the Dow continues down below 25,000 (I hope it doesn’t) then it is likely to kick off a recession and say hello to President Sanders.
Trump or Pence should speak more to specifics as to what he is doing (and they are) including banning flights, the big one is how HHS IS working with Regeneron, Regn on antibodies, with Vaxart Inc. (NASDAQ: VXRT on vaccine
Warren Buffett has said that “a prediction about the direction of the stock market tells you nothing about where stocks are headed, but a whole lot about the person doing the predicting.”
Since this is unquestionably true, I know that stocks, and those returns are not normally distributed. In plain English, that means stocks rarely have an 8% advance in 3 trading days like we’ve seen them recently fall about 8% in 3 trading days. Some would say stocks take the stairs up and the elevator down.
But *stock returns are positive about 65% of all months, 75% of all years, 95% of all 5 year periods, and about 99% of all historical 10 year periods. So don’t invest money in stocks that you don’t expect to be able to leave alone for at least 5 years in order to have a sufficient probability of success, and then ignore short term volatility.
Fast falls are the price to be paid by automated trading programs. I bet a lot of this is hedge funds cashing out now, taking advantage of the fall to rebalance going into the election. They move positions of tens or hundreds of thousands of shares instantly so their impact amplifies the trend.
Thanks...Good luck to you.
We’re gonna ride it out. Can’t sell now, toooooo low. It may continue to go down, we’re counting on it coming back once they get a treatment and a vaccine. I bet it will go up slower than it went down. What can you do, just hang in there.
The only thing making money right now is we threw some into INO, should have also done MRVL. We took out of regular IRA and put in a tdameritrade acct where we can pick and choose where it goes. And then it dropped.....
It’s time to buy, not sell.
some treasuries and bonds too for mix...
I went to cash about two weeks ago, and bought small portions of inverse-ETF funds.
And some Gilead (makers of that antiviral they’re trying.)
The markets have lost ~10% or so.
If you lost 7 figures, and it wasn’t due to leverage, you still have far more than most.
Depending on what your lifestyle/run rate is, you’re still in pretty good shape.
If you sell low, you lose permanently.
That implies much about the total value of your portfolio, FRiend.
+1
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.