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sschullo

Has Your Portfolio Recovered?

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Hi all,

 

We all know what happened last year with portfolios of 80% to 100% in equities. If you had too much of an equity allocation during the downturn last year and you held on for dear life, you should have been "rewarded" because your equities have grown and because you did not panic and sell at the lows. Far too many investors buy too high and sell at the lows, which is the worst decision to make. For those who panicked and sold are left out and have not benefited from the latest run-up.

 

If you are a young investor with years to go before retirement, you can still maintain a healthy equity allocation, perhaps up to 60%-80%, DEPENDING on your tolerance and understanding for risk. All investors should have a portion in bonds so you can learn about them.

 

For a further discussion: click here.

 

Have a good day,

Steve

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Steve,

 

I read your link. I am perplexed how others have regained their loses since the market was at 14,000 or so before it tanked. I am still down quite a bit.

 

Tony

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Steve,

 

I read your link. I am perplexed how others have regained their loses since the market was at 14,000 or so before it tanked. I am still down quite a bit.

 

Tony

 

 

 

Some interpret the data different by saying that they do not regard paper losses as a loss. Its only a loss if they sold the security at the bottom. Others were probably diversified with a proper bond allocation and have pretty much recovered. We are only down about 10%, however, if our portfolio were 90% equities it would have went through the roof in 2007 but since we had a 70% bond allocation, it did not go as high as yours, for example, and therefore did not go down as much as yours either. Thats how bonds work. Finally, I think people who have lost 50-60-70% might be either too angry or too proud to admit and to post online that they are still down.

 

2 cents,

Steve

 

 

Steve,

 

I read your link. I am perplexed how others have regained their loses since the market was at 14,000 or so before it tanked. I am still down quite a bit.

 

Tony

 

 

Some interpret the data different by saying that they do not regard paper losses as a loss. Its only a loss if they sold the security at the bottom. Others were probably diversified with a proper bond allocation and have pretty much recovered. We are only down about 10%, however, if our portfolio were 90% equities it would have went through the roof in 2007 but since we had a 70% bond allocation, it did not go as high as yours, for example, and therefore did not go down as much as yours either. Thats how bonds work. Finally, I think people who have lost 50-60-70% might be either too angry or too proud to admit and to post online that they are still down.

 

2 cents,

Steve

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Hi all,

 

We all know what happened last year with portfolios of 80% to 100% in equities. If you had too much of an equity allocation during the downturn last year and you held on for dear life, you should have been "rewarded" because your equities have grown and because you did not panic and sell at the lows. Far too many investors buy too high and sell at the lows, which is the worst decision to make. For those who panicked and sold are left out and have not benefited from the latest run-up.

 

If you are a young investor with years to go before retirement, you can still maintain a healthy equity allocation, perhaps up to 60%-80%, DEPENDING on your tolerance and understanding for risk. All investors should have a portion in bonds so you can learn about them.

 

For a further discussion: click here.

 

Have a good day,

Steve

 

Steve,

I am still down some. However, Had I not moved money one day too soon. I would be treading water. By the way, the bulk of my money is in Rerex, Rgaex, Bgrfx.

Thanks for all you do!

Frank

 

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