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oldhat

What The Hell Was That?

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Intruder

 

Treating the market as a ###### is not the kind of advice we want to give others who visit this site. I didn't do a thing. I didn't buy and I didn't sell. I don't let the market's daily gyrations effect me.

 

You are the anti-403bwise

 

 

Tony

 

 

Who said any thing about trading? Many long term investments were depressed by 20% or more because of the sell off on Thursday which made it advantageous to purchase the securities if you had the funds to invest.

 

The only rule that counts is buy low, sell high.

 

How is it anti 403bwise is you buy when investments are priced low?

 

 

Low? By what measure is this market low? Stocks are still overpriced on a historical basis and there is no margin of safety built-in. I never doubt the ability of central banks to blow bubbles in the short term, but historically stocks have low returns going forward from these earnings level. I'm not saying sell stocks - just be mindful of the risk and your own risk profile.

 

Scottyd

 

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Intruder

 

Treating the market as a ###### is not the kind of advice we want to give others who visit this site. I didn't do a thing. I didn't buy and I didn't sell. I don't let the market's daily gyrations effect me.

 

You are the anti-403bwise

 

 

Tony

 

 

Who said any thing about trading? Many long term investments were depressed by 20% or more because of the sell off on Thursday which made it advantageous to purchase the securities if you had the funds to invest.

 

The only rule that counts is buy low, sell high.

 

How is it anti 403bwise is you buy when investments are priced low?

 

 

Low? By what measure is this market low? Stocks are still overpriced on a historical basis and there is no margin of safety built-in. I never doubt the ability of central banks to blow bubbles in the short term, but historically stocks have low returns going forward from these earnings level. I'm not saying sell stocks - just be mindful of the risk and your own risk profile.

 

Scottyd

 

 

If you buy an investment that took a 20% dip because of the market glitch on Thursday and is back to its pre 2pm thursday price today then you have 20% cushion against a further decline. If its an income producing investment you get cash flow as well.

 

At some point you can pull the trigger when the price is attractive.

 

Or you could follow Cramers advice of last week and not buy until the Dow hits 9000.

 

 

 

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Old hat

 

Ignore the noise and don't react to it. Stay the course, diversify, and soldier on. Don't join the panic.Just make sure you've got some bonds in there ( BOGLE's rule is your age in bonds). I think the market will be moving higher for at least another year. But nobody really knows.Our economy is improving. I guess we may have to wait for Europe and Asia to get their act together next.

 

May has always been a volatile month for stocks. This really is nothing new.

 

My approach from here on out though is to invest only in bonds but ,I'm still a little high on the equities side to the tune of 70% of my portfolio. BUT just a year ago I was 100% stocks so I'm moving in the right direction.

 

Take if from me who has learned the hard way-DIVERSIFY!!

 

 

Tony

 

 

Good advice! It's a long term game.

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Old hat

 

Ignore the noise and don't react to it. Stay the course, diversify, and soldier on. Don't join the panic.Just make sure you've got some bonds in there ( BOGLE's rule is your age in bonds). I think the market will be moving higher for at least another year. But nobody really knows.Our economy is improving. I guess we may have to wait for Europe and Asia to get their act together next.

 

May has always been a volatile month for stocks. This really is nothing new.

 

My approach from here on out though is to invest only in bonds but ,I'm still a little high on the equities side to the tune of 70% of my portfolio. BUT just a year ago I was 100% stocks so I'm moving in the right direction.

 

Take if from me who has learned the hard way-DIVERSIFY!!

 

 

Tony

 

 

Good advice! It's a long term game.

 

 

According to John Manard Keynes, the economist:

 

"In the long run we are all dead" (i.e. not able to benefit from long term appreciation because of premature death before appreciation occurs) which is why short term gains are more desireablethan waiting fro long term appreciation.

 

 

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Old hat

 

Ignore the noise and don't react to it. Stay the course, diversify, and soldier on. Don't join the panic.Just make sure you've got some bonds in there ( BOGLE's rule is your age in bonds). I think the market will be moving higher for at least another year. But nobody really knows.Our economy is improving. I guess we may have to wait for Europe and Asia to get their act together next.

 

May has always been a volatile month for stocks. This really is nothing new.

 

My approach from here on out though is to invest only in bonds but ,I'm still a little high on the equities side to the tune of 70% of my portfolio. BUT just a year ago I was 100% stocks so I'm moving in the right direction.

 

Take if from me who has learned the hard way-DIVERSIFY!!

 

 

Tony

 

 

Good advice! It's a long term game.

 

 

ditto! Mr. Buffett would be proud of us!

 

 

 

 

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As of today, my net gains are negative $20. Frustrating. I emailed my advisor, let's see if she responds.

 

I added the VIX index to my homepage.

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Old Hat,

 

Keep on truckin!! (######! thats an old phrase) Don't let the huge drop today deter you. Your advisor knows nothing more than you do!!

 

 

Tony

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I added the VIX index to my homepage.

 

 

How does that work for you? Seem like if were bought early for a low price it shined during the recent volatility. But how does it fit in a portfolio? What % to hold, when to rebalance or sell?

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I just added it to the portfolio so I could track it day to day, like the NYSE, NASDAQ, S&P even though I don't own any ETFs. It's an useful index to watch, IMO.

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Oldhat,

I have shared this information many times with people. You might need a plan, a long term plan, that you can live with through thick or thin. When you have that plan, that asset allocation that you are comfortable with, then compare it with what your financial adviser has for you.

https://personal.vanguard.com/us/insights/s...lio-allocations

Steve

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