Account draining !

[Spudsbud]

I really thought if my account went down by nearly $200k.... there would be a new boat in my driveway......
nope......

 

[GRADS]

Yeah, no kidding! Roughest week since the financial crisis of 2008.

 

[Danger Dave]

It's a preview of what Bernie will do to your accounts.

 

[Bigbore500r]

Im over here like "shit, Wendy's charged me for a large soda"

 

[Kachina26]

Everything is on sale, time to buy!

 

[Bigbore500r]

Everything is on sale, time to buy!

F250's are still $78k

 

[WildHorses24]

Millionaires are made in times of extra pessimism....


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[monkeyswrench]

I thought this was a thread about marriage or kids...my bad

 

[copterzach]

Millionaires are made in times of extra pessimism....


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I don’t have much in the stock market. Need the price of oil to get back up.

CASH is king


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[LuauLounge]

Not an issue, 20% drop on Zero is still Zero.
I'm way ahead.

 

[dribble]

In 2009 many of my co-workers freaked. They sold out and got out. I doubled down. Guess who came out on top.

 

[EmpirE231]

pretty sure it'll drop a bit more tomorrow!

 

[RiverDave]

I really thought if my account went down by nearly $200k.... there would be a new boat in my driveway......
nope......

Jesus.. You'd think someone would at least call?

RD

 

[RCDave]

I pulled out and went liquid at over 28. Down down down. But when to ease back in????

 

[relaxalot]

I guess the question that you need to ask yourself is when? I still think the market has a large drop in it. This virus will likely grow and possibly kill many millions.. no travel, no shopping, schools closed, no concerts, no restaurants.. pretty much stopping all commerce..

I am not going to buy in until there is some and I mean a bunch of positive upside shown.. I don't see any yet..

 

[Halvecto]

Set it and forget it is a great mantra, takes a steely mindset and for most who have accumulated much of their wealth connected to the markets, it is flat out nerve-racking. The reality is that in a global economy the variables are extreme and the "black swan" events are no longer localized, so essentially the infrequency that would be historically referenced is being adjusted.

Hedging, dodging, trading around a long term portfolio in this market is like a dance. If you get out of sync, it's best to walk off the floor and wait for the next song. For most it is best a spectator sport.

Trying to "make" money in these markets is the wrong approach. Getting too careful usually a regret later. Minimize large loss exposure, take small relative wins when available.

 

[mjc]

Set it and forget it is a great mantra, takes a steely mindset and for most who have accumulated much of their wealth connected to the markets, it is flat out nerve-racking. The reality is that in a global economy the variables are extreme and the "black swan" events are no longer localized, so essentially the infrequency that would be historically referenced is being adjusted.

Hedging, dodging, trading around a long term portfolio in this market is like a dance. If you get out of sync, it's best to walk off the floor and wait for the next song. For most it is best a spectator sport.

Trying to "make" money in these markets is the wrong approach. Getting too careful usually a regret later. Minimize large loss exposure, take small relative wins when available.

I looked I am only down about 3.2% overall. so nothing to worry about yet.

 

[Rajobigguy]

I'm down about 10% l but I'm optimistic that things will level out in the next few days. If I take last years gains and average them into this year I'm still way ahead of the game but I must admit that the last few days have be painful.

 

[GRADS]

BUY BEFORE THE CLOSE!!

 

[EmpirE231]

1200 point drop... pretty much 4.5% in one day is pretty big.

 

[MSum661]

Killed it all week on some Bio's.
watch the sell off to continue going into the weekend.
JMO.

 

[LargeOrangeFont]

This is the correction everyone here has been hoping for. Why aren't you all happy?

I may dump some cash in over the next couple weeks.

 

[2Driver]

Im not as worried about the market as much as the rest of the economy and the domino effect. It happens pretty quick.

Businesses and people start cancelling purchases, the consumer stalls and goes into wait and see mode and the house of cards starts to go.
So if you just lost a significant chuck of wealth are you still considering spending the same... expensive vacation, new car, remodel, vacation home, cutting back on the drunken sailor spending - probably.

Lets not hope todays $70k RZR’s are remembered as the 2020 Magic deck boat

 

[EmpirE231]

This is the correction everyone here has been hoping for. Why aren't you all happy?

I may dump some cash in over the next couple weeks.

I'm not upset

 

[HitIt]

Im not as worried about the market as much as the rest of the economy and the domino effect. It happens pretty quick.

I am hoping that this will be the year that pool prices drop enough for me to be able to finally afford to put one in. Depending on how things go, we might even be able to buy some shutters.

 

[EmpirE231]

market is reacting, the virus news is heavily being pushed... so outside of manufacturing / shipping that is already being effected by that news. I would expect a lot of people are cancelling their flights, cruises, vacations etc this week = huge hit to those industries and hospitality industries

FB just cancelled its 5k person conference (their biggest event of the year)

A big soccer game in Italy the other day had to be played in an empty stadium

things are getting weird

 

[DB / HAV]

Dollar cost averaging!

 

[HitIt]

Dollar cost averaging!

 

[LargeOrangeFont]

I am hoping that this will be the year that pool prices drop enough for me to be able to finally afford to put one in. Depending on how things go, we might even be able to buy some shutters.

We aren't there yet. If this continues for a year, perhaps. People like to talk about 2006 and 2008... they forget about 2007

 

[monkeyswrench]

We aren't there yet. If this continues for a year, perhaps. People like to talk about 2006 and 2008... they forget about 2007

I sure as hell didn't forget 07...had to buy a whole new set of teeth after they got kicked in.

I'm not bright enough yet to be invested in anything. I did, however, learn to not be leveraged on anything. Small step, but at least headed the right way.

 

[LargeOrangeFont]

I sure as hell didn't forget 07...had to buy a whole new set of teeth after they got kicked in.

I'm not bright enough yet to be invested in anything. I did, however, learn to not be leveraged on anything. Small step, but at least headed the right way.

Did you pay cash or finance the teeth?

 

[mjc]

market is reacting, the virus news is heavily being pushed... so outside of manufacturing / shipping that is already being effected by that news. I would expect a lot of people are cancelling their flights, cruises, vacations etc this week = huge hit to those industries and hospitality industries

FB just cancelled its 5k person conference (their biggest event of the year)

A big soccer game in Italy the other day had to be played in an empty stadium

things are getting weird

And it will make Trump look bad just like the media wants.

 

[monkeyswrench]

Did you pay cash or finance the teeth?

Traded in the spare wooden ones, and recycled cans for the balance

 

[cofooter]

I really thought if my account went down by nearly $200k.... there would be a new boat in my driveway......
nope......

Damn, you're either a rich guy or make terrible investments. My 401K only down about 6%.

 

[Mcob25rg]

I’m getting treated by the boss like I just bought something REALLY EXPENSIVE, but I didn’t’! I did learn the last time that monthly payments at a time like this can litterly drive me to drink, so I’m sober tonight. Lot less in the retirement account, but EVERYTHING is paid for, and I can sleep knowing I’m way good on covering the monthly nut. I’m going to shop for stuff I want, and couldn’t afford at regular price, but only if I can steal it.

 

[Singleton]

My money guy called, told him do what’s best. I told him I am not looking short term, have 20 years until I want to retire. He moved some things around, but I refuse to look at those account unless we are having our quarterly review.

 

[LargeOrangeFont]

My money guy called, told him do what’s best. I told him I am not looking short term, have 20 years until I want to retire. He moved some things around, but I refuse to look at those account unless we are having our quarterly review.

Yea seriously. I’m letting him do what I am paying him for. Told him to call if he thinks buying at a discount is warranted and we can throw some cash at the problem.

 

[Singleton]

Yea seriously. I’m letting him do what I am paying him for. Told him to call if he thinks buying at a discount is warranted and we can throw some cash at the problem.

I allocate x dollars a month to investment activities and place that into an account. He sweeps the $$ and does what is necessary.

He will most likely call in a couple weeks and say got any additional $$, good time to buy

 

[LargeOrangeFont]

I allocate x dollars a month to investment activities and place that into an account. He sweeps the $$ and does what is necessary.

He will most likely call in a couple weeks and say got any additional $$, good time to buy

Yea I do the same.

 

[RCDave]

 

[bowtiejunkie]

Staying the course as always.

 

[cofooter]

Staying the course as always.

Yep, if time is on your side, you can hardly go wrong...….

 

[Carlson-jet]

Gold went down, Oil went down.
A shift in the market.
Shifted from the not knows to the knows.
Anyone who still believes in 20 year cycles will be cancelled. Eventually.

 

[rrrr]

Selling to avoid a drop then having to pay capital gains tax doesn't sound like a winning strategy.

 

[HST4ME]

The liberals and media will never waste an opportunity of a good tragedy. They will spin this 200% and fear monger the economy. I moved some stuff around in January, but meh. After 08 I know better. I have more work scheduled for the next six months than I should have taken and will probably cash it for most of the year and see how this goat fuck goes. Plus it's an election year and even though I've seen steaming piles of cow shit with more capability than the complete blithering amoeba brained leftists I'll just shove greenbacks in my hiding box.

 

[CarolynandBob]

Glad I got out mid day Monday.

 

[Halvecto]

Busy morning. Some of you may enjoy this excerpt from a blog I am in the midst of writing.........

When investment markets convulse and create both pain and opportunity, tactics should already be in place to affect the strategy. The default of "do nothing", while not necessarily bad, isn't usually an intentional tactic. It's a lack of one. Getting out may be a tactic. If so, when to get back in should be one as well.

The math of loss is a hard pill to swallow. A -20% loss requires a +25% gain to recover. A -30% loss requires a 43% gain. You get it. Minimizing losses, prevents requiring a pressure for maximizing profits. Risk management is different than risk avoidance.

Some analogies I use: Never let your V8 become a 4-cylinder. It may still do the job, but you have lost your Horsepower to do the job well going forward. This doesn't require crazy risk or expensive insurance products. Or, I always prefer the feel of a 4-stroke motorcycle vs the 2-stroke. The 2-stroke has a zip and rip, but when you let off the gas it doesn't have a natural slow-down to it. It's either getting on it or hammer the brakes to get off it. My XR thumper is different. When I let off the gas, the exhaust acts as a brake of sorts. Helps me manage the weight and HP. It's a tactic preference.

If you are invested in broad mutual funds, whether in a 401k or the like, it can be a bit more difficult.....and worse, an individual investor is now subject to the emotions of all the other shareholders. In a way, it's socialized investing. What happens to one, happens to all. If that fund is getting redemptions, the fund manager is now a net seller in a market that should soon become a buyers market. Often, mutual funds get money when there isn't much to buy and have to give it back when good names go on sale. There are a few fund managers that have navigated this well, but usually because they are small and not largely in retirement plans. We use very few mutual funds for many of these reasons. By the way, if a mutual fund is owned in a taxable account, prepare yourself for a cap-gain tax at the end of 2020, even if the fund has a negative year. I am not predicting the performance part of that, but highly likely the cap-gain distribution part. Managers will be forced at some point to sell their long-term, big winners to meet redemptions if this keeps up. That said, most 401k plans have limited choices. Be prudent, but don't overdiversify. Particularly because of the dollar-cost average dynamic of this structure. Also worth considering is having contributions with a different allocation than current assets. *Not a recommendation, just a consideration.

Take Alphabet (Google) for instance. The largest and longest holding of our clients. Here is a chance to average UP. Yes, you read it right. Many times a great stock will be one that we have a hard time adding to as it moves higher, fearing we will dilute the return and only detract from its performance. I don't have intentions of selling GOOG in a rough market, but I can trade around it. Adding to my position, I still have a large net gain and if it moves higher I can trim it again as risk management. This way I also don't realize a loss with that sale (b/c a lower basis) which would prevent me from buying it back again within 30 days (wash sale rule). Also, trading similar but not the same name. For instance, if we own MSFT, I can trade CSCO or INTC (all three trade w/ hi correlation), even short them to lock down the allocation. This "pairs trade" prevents the portfolio from feeling the weight of down market, but maintains my chance of treading water until I can cut loose the sister position.​

Disclaimer: This is NOT a recomendation to buy or sell $GOOG, $MSFT, $CSCO, $INTC.

 

[evantwheeler]

Busy morning. Some of you may enjoy this excerpt from a blog I am in the midst of writing.........

When investment markets convulse and create both pain and opportunity, tactics should already be in place to affect the strategy. The default of "do nothing", while not necessarily bad, isn't usually an intentional tactic. It's a lack of one. Getting out may be a tactic. If so, when to get back in should be one as well.

The math of loss is a hard pill to swallow. A -20% loss requires a +25% gain to recover. A -30% loss requires a 43% gain. You get it. Minimizing losses, prevents requiring a pressure for maximizing profits. Risk management is different than risk avoidance.

Some analogies I use: Never let your V8 become a 4-cylinder. It may still do the job, but you have lost your Horsepower to do the job well going forward. This doesn't require crazy risk or expensive insurance products. Or, I always prefer the feel of a 4-stroke motorcycle vs the 2-stroke. The 2-stroke has a zip and rip, but when you let off the gas it doesn't have a natural slow-down to it. It's either getting on it or hammer the brakes to get off it. My XR thumper is different. When I let off the gas, the exhaust acts as a brake of sorts. Helps me manage the weight and HP. It's a tactic preference.

If you are invested in broad mutual funds, whether in a 401k or the like, it can be a bit more difficult.....and worse, an individual investor is now subject to the emotions of all the other shareholders. In a way, it's socialized investing. What happens to one, happens to all. If that fund is getting redemptions, the fund manager is now a net seller in a market that should soon become a buyers market. Often, mutual funds get money when there isn't much to buy and have to give it back when good names go on sale. There are a few fund managers that have navigated this well, but usually because they are small and not largely in retirement plans. We use very few mutual funds for many of these reasons. By the way, if a mutual fund is owned in a taxable account, prepare yourself for a cap-gain tax at the end of 2020, even if the fund has a negative year. I am not predicting the performance part of that, but highly likely the cap-gain distribution part. Managers will be forced at some point to sell their long-term, big winners to meet redemptions if this keeps up. That said, most 401k plans have limited choices. Be prudent, but don't overdiversify. Particularly because of the dollar-cost average dynamic of this structure. Also worth considering is having contributions with a different allocation than current assets. *Not a recommendation, just a consideration.

Take Alphabet (Google) for instance. The largest and longest holding of our clients. Here is a chance to average UP. Yes, you read it right. Many times a great stock will be one that we have a hard time adding to as it moves higher, fearing we will dilute the return and only detract from its performance. I don't have intentions of selling GOOG in a rough market, but I can trade around it. Adding to my position, I still have a large net gain and if it moves higher I can trim it again as risk management. This way I also don't realize a loss with that sale (b/c a lower basis) which would prevent me from buying it back again within 30 days (wash sale rule). Also, trading similar but not the same name. For instance, if we own MSFT, I can trade CSCO or INTC (all three trade w/ hi correlation), even short them to lock down the allocation. This "pairs trade" prevents the portfolio from feeling the weight of down market, but maintains my chance of treading water until I can cut loose the sister position.​

Disclaimer: This is NOT a recomendation to buy or sell $GOOG, $MSFT, $CSCO, $INTC.

Where can we read more of your writings? I am balls deep into learning about the market and studying the money flow. Opened an E-trade account a month ago to consolidate cash savings for investment use, an individual brokerage account I was ignoring, opening a roth IRA, and rolling two 401k's from previous employers over into a single IRA. At 35, with a decently sized shovel and a nicely filled wheel barrow at the moment, I've started to shift my focus from working hard and playing hard to working hard and investing hard for the next 10 years, so I can stop working hard earlier in life rather than later. There is lots to read out there, but difficult to sort the wheat from the chaff.

 

[Englewood]

This will all pass by June in my opinion...It's basically a fricken head cold...

I'm still buying every month. Once the liberal media moves on to their next focus, we'll climb back up there.

Remember, when the masses sell, you buy. Don't be a sheep.

 

[LargeOrangeFont]

This will all pass by June in my opinion...It's basically a fricken head cold...

I'm still buying every month. Once the liberal media moves on to their next focus, we'll climb back up there.

Remember, when the masses sell, you buy. Don't be a sheep.

True..

They will get back to trashing Trump shortly