Yes, another one of these threads. What are you guys going to do? The market continues to keep plunge. I don't even want to say how much I've lost in the last few months. Will you guys pull out or are you going to stay in hoping it will turn around sooner or later?
If I was 7-8 years older i'd be bugging right now.
The big correction was coming, homes will be next to some capacity. Just be wise with your money and don't invest more than you can afford being tied up for a couple of years.
Everyone saying "recession is coming", so people say "you know what, I'm not going to... buy that new car, hire that contractor for my kitchen remodel, go on that big trip, etc, etc".. then boom, we're in a recession
If you really need to calm your nerves, I try and think of it as a sale.
I will continue to buy more at the sale price and be happy I can get this deal.
This country knows 2 things .... War and how to make money.
Leave it in ... matter of fact if you have a 401k plan or IRA - I would keep funding it as normal like I did in 2007 and 2010. Think of it as a sale - you will get more funds/stocks for your dollar today.
It will come back ... it always comes back. IN 10 - 15 years we will see a 50,000 point DOW.
+1
"Be fearful when every one else is greedy. Be Greedy when everyone else is Fearful"
-Warren Buffett
Buffett just increased his holdings this week that included Chevron, Apple, and a few other companies. Google it.
I think the only company he sold (and owned since 1989) was Wells Fargo?
Also IPOs that skyrocketed and then I’ve been steadily declining for six months or a year, get rid of those
Value stocks you should just hold and wait out the market they will come back up.
Buy more shares when the market is down, and once it comes back, you will be thrilled you did.
Also bonds are starting to get yieldy again, its a good place to park some money.
For a lot of people, this is their first real bear market. Its scary, but it will be okay.
Buy more shares when the market is down, and once it comes back, you will be thrilled you did.
+1
Absolutely right. It takes discipline sometimes though to practice this strategy but, without it everyone would be buying HIGH and selling LOW.
IF you are a long term investor (vs. a short term trader) - these are the times to stock up. There is a fire sale going on out there.
For a lot of people, this is their first real bear market. Its scary, but it will be okay.
Just had one two years ago, so you'd have to be a brand new investor for it to be the first.
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sound, sensible advice in here.
For a lot of people, this is their first real bear market. Its scary, but it will be okay.
Just had one two years ago, so you'd have to be a brand new investor for it to be the first.
Pandemic spurred a lot of interest. 15% of investors started during 2020
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Also don't confuse the prospective, non-revenue earning high-tech stocks that are getting hammered, with the big tech stocks that are making money are have very strong businesses and cash flow. Stocks like Google, MSoft, Amazon, and Apple will all come out of this strong. The Robinhoods and Snowflakes will die.
We are no where near the bottom, the dow will go below 30,000. And the pain is going to continue for a couple of years. I cant point to anything that will turn this around.
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I’d love to see a rally by tomorrow
We are no where near the bottom, the dow will go below 30,000. And the pain is going to continue for a couple of years. I cant point to anything that will turn this around.
I think this advice can be dangerous to some people.
If people think it’s a guarantee that the market will go down more, they might sell now and try to buy at the bottom.
It might be safer to say it could go down and it could go up, just keep buying because long term the market will rise.
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I’d love to see a rally by tomorrow
We are no where near the bottom, the dow will go below 30,000. And the pain is going to continue for a couple of years. I cant point to anything that will turn this around.
How can you know that? It may not be "the bottom", but we are getting close. Stating speculation as fact is worse in financial suggestions than it is in stupid football threads.
Your 401k should still be buying stocks. And it might be a bit late to get a big return from re allocating to stable investments for the rest of the nest egg but you might consider it.
I feel like we are now where near the bottom. In 2008, we knew it was the housing bubble, in 2020, it was the covid lockdown.
Right now, there are too many factors contributing to this and not one thing thats going to fix all the problems going on right now. (the war, the supply chain problems with China lockdowns, the Fed printing money and chasing inflation)
So in my opinion, this thing is not going to turn around any time soon.
Just how I feel about it from what i'm reading and hearing and seeing. I'm not an expert on this.
Just like in my opinion Daniel Jones sucks, I HOPE I"M WRONG about that and this
All good! I say that you said that so I know your being smart.
I know your just bracing that things can get worse which is definitely true.
I just don’t want a new young investor to interpret that statement as it “will definitely go down some more so I should wait to buy then”
The way I had it structured I have 80% of my biweekly paycheck going to my securities account for my money guy to play around with and do with it as he sees fit and 20% going to my cash account (I live a somewhat quiet lifestyle. I'm not traveling during this pandemic. I'm not spending extravagantly. Money spent on rent, utilities, food, etc.). I only contribute to my IRA at the beginning of every year for the tax benefits. Since I received my year-end bonus, I've lost A LOT. I mean I am down A LOT. A ridiculous amount. In Mid-April, I decided to just bite the bullet, accept some of the loss and go 60-40. But it's still not helping that the market continues to tumble day in and day out.
If I was 7-8 years older i'd be bugging right now.
Also If you were 7-8 years older you would/should have had more of your assets in fixed income and wouldn't be freaking out.
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just because i said we're not near the bottom, I didnt tell anyone to sell anything, i said max out your 401k if you can in this down market.
All good! I say that you said that so I know your being smart.
I know your just bracing that things can get worse which is definitely true.
I just don’t want a new young investor to interpret that statement as it “will definitely go down some more so I should wait to buy then”
yeah yeah all good, if there are new investors out there my advice would be to dollar cost avg into a market like this, this way if there is more down pain you're not going all in at once.
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you haven't lost anything in the last few months. You only lose if you sell now. Ride it out, you have literally decades until you retire, looking at it as you've lost money in the last few weeks or months is silly.
The way I had it structured I have 80% of my biweekly paycheck going to my securities account for my money guy to play around with and do with it as he sees fit and 20% going to my cash account (I live a somewhat quiet lifestyle. I'm not traveling during this pandemic. I'm not spending extravagantly. Money spent on rent, utilities, food, etc.). I only contribute to my IRA at the beginning of every year for the tax benefits. Since I received my year-end bonus, I've lost A LOT. I mean I am down A LOT. A ridiculous amount. In Mid-April, I decided to just bite the bullet, accept some of the loss and go 60-40. But it's still not helping that the market continues to tumble day in and day out.
Again, you haven't lost anything unless you sell. Stop looking at this stuff every day or even every year. Now is the time to put more in not less. I know you're an intelligent guy and I'm young but you're a lot younger than I am. There is zero reason for you to "bite the bullet and accept some of the loss". That's the exact opposite of what you should be doing. You are turning this into a loss with pure stupidity. Stop that and stop worrying about it. This isn't rocket science. Sell high buy low. It's really that simple. Do you think the market is going to be below where it is now in 20-30 years? Of course not. And if it is, we're fucked anyways so who really gives a shit.
In your position you have absolutely zero reason to be selling anything or putting less money in right now. You have no reason to be talking about how much you've lost in the last few months. You haven't lost a penny.
I don't see much improvement in the economy in the next few years. There will be periods of rapid fluctuation until there is some fiscal discipline.
Rising interest rates, increasing energy costs (the current petroleum reserve is at the lowest level in 35 years), expansion of government spending, and inflation are the time-tested recipe for a recession. I think it's wise to buy if your young and preserve earnings if you're going to retire in the next 3-5 years.
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you haven't lost anything in the last few months. You only lose if you sell now. Ride it out, you have literally decades until you retire, looking at it as you've lost money in the last few weeks or months is silly.
The way I had it structured I have 80% of my biweekly paycheck going to my securities account for my money guy to play around with and do with it as he sees fit and 20% going to my cash account (I live a somewhat quiet lifestyle. I'm not traveling during this pandemic. I'm not spending extravagantly. Money spent on rent, utilities, food, etc.). I only contribute to my IRA at the beginning of every year for the tax benefits. Since I received my year-end bonus, I've lost A LOT. I mean I am down A LOT. A ridiculous amount. In Mid-April, I decided to just bite the bullet, accept some of the loss and go 60-40. But it's still not helping that the market continues to tumble day in and day out.
You are doing it right. Unreal that you can plow 80% of your money into investments. Keep doing it. Don't look at it as losing money. You are buying stocks on sale, which allows you to accumulate more shares of stock. Keep plowing money in. If the market is down another 10%, keep plowing money in. You are young. In five years, you will look at your portfolio and be thankful you did.
As for losing money, everyone has. I'm actually up on the year because of FL real estate, but I was down $23K or so just yesterday. It doesn't matter. It will eventually go back up. It always has.
I share this article every time I can. If you have a long-term time horizon, it is very risky to sell. "Looking at data going back to 1930, the firm found that if an investor missed the S&P 500′s 10 best days each decade, the total return would stand at 28%. If, on the other hand, the investor held steady through the ups and downs, the return would have been 17,715%."
Think about that. If you miss the 10 best market days each decade, your returns are 28% total since 1930. If you just stay in, your returns would have been 17,715%. In a volatile market like this is usually when those huge whiplash days are, and there is immense risk to missing those days.
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Now I just don’t bother looking I feel better, less stress and the way I look at it I wasn’t retiring in the next few years anyway. If anything, find the deals available and take advantage of them.
Things will turn around they always do.
+1
Also IPOs that skyrocketed and then I’ve been steadily declining for six months or a year, get rid of those
Value stocks you should just hold and wait out the market they will come back up.
I am funding the crap out of my after tax mega Roth IRA plus maxing out 401k and catch up contribution.
Still averaging down on Apple and Nvidia those that I can hold my nose as hold when market tanks
I think they lead after whatever recession ( or asset revaluation)
Not touching acct till 15-20 yrs hopefully
As far as alternative energy, PLUG
Yes this is a PLUG. So do your own DD if remotely interested ( and it’s still a bit expensive. 9x 2022 sales. Caveat emptor
I think hydrogen is gonna dominate as infrastructure goes, really kicking in 2025 and on.
EU budget in 220 billion for alternative ( if it passes). We know they are moving away from oil/ gas. Expect US to do same. Cali doing it now.
PLUG super well positioned. Just did a billion dollar deal in Denmark for biggest hydrogen project ever. I expect a lot more over next few yrs
And of course if they stayed in and lost another 15%+ they would not have the cash needed for the other classic comment (usually made by those who stayed in and are getting killed) 'it's a great buying opportunity.'
Which it may be - except for those who stayed in because they were told you only lose when you sell and now have no cash and a portfolio down big.
I feel like we are now where near the bottom. In 2008, we knew it was the housing bubble, in 2020, it was the covid lockdown.
Right now, there are too many factors contributing to this and not one thing thats going to fix all the problems going on right now. (the war, the supply chain problems with China lockdowns, the Fed printing money and chasing inflation)
So in my opinion, this thing is not going to turn around any time soon.
Just how I feel about it from what i'm reading and hearing and seeing. I'm not an expert on this.
Just like in my opinion Daniel Jones sucks, I HOPE I"M WRONG about that and this
2008 I think will be a lot worse. Credit markets were frozen. This is more a revaluation of assets that got way ahead of ourselves. It’s not 1999 either. mega tech makes tons of cash. It’s basically do I think Apple should warrant a 25x p/e or. 15x P/E. Could definitely see another 10-20% downside. Issue is you will never get the upswing or time the bottom. So just keep dollar coat averaging in retirement accts if u have them. It could take 5 yrs to recover. 10 yrs from now you would be very happy u bought.
Some would argue that corrections are healthy, particularly when stocks have gone up so much so fast. Feb. 14, 2020, DJIA was at 29,398. March 20, 2020 it was at 19,173 when everything shut down. DJIA almost doubled since that time, and still a bit higher than Feb. 2020, even with all the host of issues. Market is pricing in a recession.
This how I feel. Correction triggered by weird economic conditions and aided by the fact that there are now going to be some other places to put your money and get a return. Before now, there really wasn't any other option but interest rates going up will change that. Zero interest rates made the market really the only game in town.