I’m hanging in there so far,but it’s surely painful.
I’ve moved some money from technology to less volatile investments but there really is no place to hide, maybe cash, but you know what they say about market timing.
What are you doing?
I’m hanging in there so far,but it’s surely painful.
I’ve moved some money from technology to less volatile investments but there really is no place to hide, maybe cash, but you know what they say about market timing.
What are you doing?
Dennis
We have no investments but our kids grandparents bought them each a small portfolio. The value of one that was $14,000 is down to $10,000 in one years time.
Last edited by Maurice Mcmurry; 07-15-2022 at 7:05 AM. Reason: ,
Best Regards, Maurice
I don't gamble, so I've been unaffected so far except for prices of things I have to buy.
The market today is where it was 18 months ago. A year and a half with no gain is unpleasant, but certainly not much of a disaster.
Dollar cost averaging is your friend in investing-- adding a constant amount every month over a long period of time (and not trading much, if at all) will ensure that you capture the long term upward trend of the markets. I like a diversified portfolio (small ca. large cap, international, real estate, commodities, and bonds of various flavors) of very low cost index funds. Boring as heck, but it seems to work without any need for panic.
Nothing to do but ride it out. What goes up does comes down. We've been through this before. You can't outsmart Wall Street.
I got lucky and threw some cash in at the dip after Covid was announced. Been watching and when I feel like when a new bottom has been found I will buy more. This last statement wasn't fun to open but I new there would be months like that.
IMO, long term is the only rational approach to investing in stocks. Short term is driven by irrational greed and fear. I am sticking to my long term plan.
I'm in with the other long term investors. I have a ridiculous amount of cash on my balance sheet, and I'm going to be looking at putting some into short duration high yield bond funds. I'm also looking at some defence ETFs, sith a very short stop.
But, in this climate, money market funds may be the answer.
Young enough to remember doing it;
Old enough to wish I could do it again.
Ammunition.
I dont feel safe with anything else. The dollar is inflating quickly So keeping cash is out. I dont know where to go with stocks. Im in a few funds, I dont have alot of control as they are attached to managed accounts. My companies investments are still with the staple growers. google, etc
Over the past 5 years, the total US stock market is up 50% (10% per year). Meanwhile, if you were holding cash, inflation has reduced the value of that by ~9%.
Humans have poor intuition for exponential growth. If you put $50k in a low-fee broad-based index fund at the start of your career and left it alone for 40 years, by retirement age it would be worth >$1M.
At my age I’m not heavily into stocks but still not pleasant to watch. I’ve lived through several major market corrections and my typical emotional response to safety was a mistake every time. I credit the insane rise over the last few years to 0% interest and millions of new investors playing because of free trading. The creation of ETF’s allowing daily trading and speculation of fund index’s may have contributed as well. I never saw that as a positive creation and just another contributor to volatility. Too many sketchy financial investments have been created. JMO
My three favorite things are the Oxford comma, irony and missed opportunities
The problem with humanity is: we have paleolithic emotions; medieval institutions; and God-like technology. Edward O. Wilson
I bailed last May. If I were a younger man I would just let it ride, as I always have before. At 71 I will probably would not make back what I lost in the last year.
Please help support the Creek.
"It's paradoxical that the idea of living a long life appeals to everyone, but the idea of getting old doesn't appeal to anyone."
Andy Rooney
How many people have access to $50k to invest at the start of their career?If you put $50k in a low-fee broad-based index fund at the start of your career
Though it is wise to start saving/investing for retirement as soon as one starts earning wages.
My stock investments are still more than what was put in even though they are below their peak.
Likewise my precious metals have fluctuated but still above my initial investment.
On the other side of things, my antique tools have gone through the roof. Possibly my best investment and they can be used until they get sold.
jtk
"A pessimist sees the difficulty in every opportunity; an optimist sees the opportunity in every difficulty."
- Sir Winston Churchill (1874-1965)
The IRS allows every adult to invest $400 a month tax free. My parents did $35 A month,starting when $35 was a good amount, for decades and ended up with over one million. There are better funds now with much lower fees.
A low fee index fund will outperform almost all managed funds. Schwab is now about 0.02% a year for index funds.
Bill D.
https://www.forbes.com/sites/robertb...ur-retirement/
Last edited by Bill Dufour; 07-15-2022 at 3:40 PM.