Thus is the time to invest in the international index fund ( vanguard) its covers all outside the U.S. Europe is not going off the face of the earth albeit its having difficulty absorbing the refugees. They, however, will integrate and assist an aging population become more productive. All we need is patience
My problem is when the market drops I want to go raid my emergency savings account and start buying! The bigger the sale-er-drop the more I want to buy.
Luckily I am still about 3 years away from Retirement. This dip will allow my 401k to purchase more shares in the meantime before I need to start relying on the income. Hope not to hit a patch like this after retirement, but it will happen. Just the nature of the Beast.
Over the years, I've coped with such downturns by telling myself, "Good news--stocks are on sale!" Admittedly, that works better when we're young, and less well when we're approaching or are in retirement.
2
Sound advice per the column.
I'm aware of what's happening, but I'm a long-term investor who has a well-diversified portfolio and doesn't make decisions on daily market gyrations.
I'll review my portfolio when I normally do so - in October after the 3rd quarter ends - and make decisions and adjustments, if appropriate, at that time. Most likely, whatever losses I've incurred in my investments will be "harvested" before year end for income tax purposes.
I'm aware of what's happening, but I'm a long-term investor who has a well-diversified portfolio and doesn't make decisions on daily market gyrations.
I'll review my portfolio when I normally do so - in October after the 3rd quarter ends - and make decisions and adjustments, if appropriate, at that time. Most likely, whatever losses I've incurred in my investments will be "harvested" before year end for income tax purposes.
1
Corruption is the concern. Some people are getting incredibly wealthy because of all of this turbulence. "Bankers" and hedge fund managers are mostly crooks. (98%). No one should make millions of dollars in one day. No one. It is that simple.
3
The taxation of these vultures should be merciless.
There's just one thing that bothers me about all the "hold your breath" advice being doled out to us mere mortals, many having 401Ks that will determine the quality of our "rest of life" once retired. If we're all supposed to be so wise as to not panic and look to the long term, why are the so-called smart guys with their six- and seven-figure bonuses unaware of such market fundamentals? Shouldn't they be the ones being lectured to hold firm and stop rolling the dice? In short, don't tell us, tell them.
3
Since the U.S. economy is based upon smoke and mirrors, while what we call money is notional, I will stick with a diverse portfolio of illusions. I do keep 5% in gold and silver I can touch, like Scrooge, and I own one rental property I personally maintain. I am shopping for another, as it is a great time to buy if one can.
The Shanghai market is down 25% in one week. To contradict you....this is not what markets do! Normally.
1
Once of the worst things you can do is listen to CNBC where "experts" crawl out of the woodwork to yell "advice" at you.
The best thing you can do is nothing and the worst thing you can do is anything.
China isn't falling apart and the stock markets will correct themselves in a few days, if not weeks or months. I'm in no rush to do anything, I have no debt, a steady income and cash savings to last me a few years.
The best thing you can do is nothing and the worst thing you can do is anything.
China isn't falling apart and the stock markets will correct themselves in a few days, if not weeks or months. I'm in no rush to do anything, I have no debt, a steady income and cash savings to last me a few years.
No, not worried. Look how much the markets have climbed over the past 5 years. This drop isn't much, considering how far the market has risen since, say 2001, or 2008, when it dropped before! We were due for a correction. I don't react to huge ups and downs. If anything, I see this as a potential buying opportunity --
Articles like this -- that kept my head screwed squarely on my shoulders when the world was screaming around me -- are the reason I was able to retire at 60. Set your course and stay your course, increasing your savings when you can.
Thanks for good advice, Ron.
Thanks for good advice, Ron.
Hogwash Wall Street talk! I have a Roth IRA account that I followed the buy and hold and do thing advice. It's the worse performing account I own. Now I follow a wise woman's (Orman) advice. When the market is down 10%, get out of it. This strategy has saved my savings for the last two crashes. Any fool who follows the market trend will know when the market is down and when it's back up again. You may missed the initial rebound, but bull market usually last a while, look at the last five years. It's far better to get back in after losing 10% than doing so after losing 40 or more percent.
1
I was 59 in 2008 and held on to what I thought were good stocks in good companies and was well repaid. Last month, I sold a few positions that I wasn't particularly comfortable with, but I'm holding on to the rest, even though I'm now 66. There is no other place to earn a decent return and there are folks to take care of going forward (a two week old grandson for starters). I do predict a bubble in the US stock market in the future, because there is no other reasonably safe haven with a decent rate of return, but I'll worry about that in 2016.
On a slightly different note: A little bump in the Federal interest rate would be healthy.
If interest rates are zero and there is no inflation, there is less incentive to buy since the cost of the item and the loan will be the same if you wait.
If interest rates are zero and there is no inflation, there is less incentive to buy since the cost of the item and the loan will be the same if you wait.
1
How do you feel now after yesterday? Just curious
You go down to go up again, if you look at the overall picture for the last 10 years, 20 years, investments are sound in a diversified portfolio. I just don't watch the news or my 401k moment to moment; I look for a solid return and if I am getting 12% I know this too will not last.
Sold during earnings season. Our recovery is a MickyD service one. It's sick with high dollar, we produce little that we consume and have the lowest oil prices since the 80s yet we hike wages. We need leadership in Washington not entitlements.
The recent Market volatility has nothing at all to do with entitlements. It is about China and the way the markets affect each other globally. Nobody is interested in your political opinions, keep them to yourself.
1
solid article, every investor needs to read this at least twice to ingest the simple, yet timely points laid out here. Too many investors can't handle the risk of the stock market and panic and do stupid things during downturns like these. The key is to relax and know that investing is a long term plan. Stick to the plan and you will meet your goals.
3
The latest stock market debacle is following the script that they all do, including the collective amnesia about what happened the last time.
This article is only the latest step. The advice to amateur investors to leave their money right where it is. Presumably so that there will be something for the sharp operators to haul away with them.
I'm not making any suggestions about what such investors should do. Only that they get the same advice every time.
And keep in mind that if financial commentators knew anything, they would be too busy making money to write about it.
This article is only the latest step. The advice to amateur investors to leave their money right where it is. Presumably so that there will be something for the sharp operators to haul away with them.
I'm not making any suggestions about what such investors should do. Only that they get the same advice every time.
And keep in mind that if financial commentators knew anything, they would be too busy making money to write about it.
Right, you go out and game the market, tell us how this comes out. Not well I am sure. If you flash trade this is a great game. If your the 99.5% stay in stay diversified, try to keep a cash stash so your not forced to sell.
The numbers are clear
The numbers are clear
Be greedy when others are fearful!
(Buy! Buy! Buy!)
(Buy! Buy! Buy!)
I got a notice from an investment service to switch to bonds on Thursday. I was a day late, so I took a small hit. But if one considers the $70 trillion global market cap and the 5% hit, that's $3.5 trillion lost to jitters. Someone's making money off this volatility. I wish the government would tax transactions so we can at least fix the potholes while bending over.
4
I don't see any new news explaining why the markets dropped, so there isn't any new information on which to base investment changes. I don't currently plan to change my investments, but I worry that there may be something rotten or rigged in the financial system and markets that triggers or exaggerates volatility.
If more financial-system corruption comes to light, I'll probably end-up going more into index-fund/targeted-fund investments.
If more financial-system corruption comes to light, I'll probably end-up going more into index-fund/targeted-fund investments.
1
It's Monday. Did you take a deep breath today? How much did that cost you? Thanks, Ron.
2
I've lived through two 40%+ drops in my portfolio and didn't panic, even buying a bit near the bottom (realized with hindsight of course). Overall gain has been respectable over time vs. market indices.
While growing up, two of my siblings died prematurely. Perhaps that's why I don't panic now. It's only money.
While growing up, two of my siblings died prematurely. Perhaps that's why I don't panic now. It's only money.
4
This is a "feel-good" piece, not serious journalism. The scale and speed of the global decline is a serious event, and there are good reasons to believe that this could get much worse. Perhaps there will be a bounce back. That would not be all that surprising given the Fed's commitment to the equity market. But it has been obvious for some time that there is a vast disconnect between rising share values and the performance of the real economy. Where would the markets be today with the quantitative easing programs? So maybe, with Fed support, the market will be steadied and move upward. But even if that occurs, it is hardly improbable that the selling will resume as the great correction of 2015-16 breaks through the floodgates.
2
I kept buying through the great recession. Unfortunately I am now retired, so less coming in with which to buy this time, but I will ride it out. The market goes up and down and up - always has.
7
I just ate a full half gallon of Publix chocolate ice cream!
7
everything is on sale - buy, buy, buy
8
Absolutely and perfectly correct. There is nothing fundamentally wrong with the market at this time as there was in 2009. Yes China is a huge bubble, but we had a significant one on our own. This correction is looooong over due. In fact its probably the perfect time for the Fed to raise a 0.25%, at least we will get all the pain in one shot and once the market stabilizes, probably some time next year, since a an Oct surprise is invariably in the cards, the market will have figured it in the recovery.
3
On your 4th point: Are you seriously comparing selling off at (probably) almost the pinnacle of a seven year fantastic bull market to selling off at the low point of an 18 month crash in 2009?
Of course it's a good idea to get rid of everything you've got now and investing in something extremely stable, if you're 70 years old. Don't be stupid with your money.
Of course it's a good idea to get rid of everything you've got now and investing in something extremely stable, if you're 70 years old. Don't be stupid with your money.
5
Gee, I hope the contents of Tim Cook's email to Jim Cramer were included in a simultaneously filed Form 8K with the SEC.
8
No change for me. About half in cash because of a recent capital infusion. Now is a buying opportunity. Just got lucky and bought Apple at $95 this morning.
1
Or, instead of taking deep breaths, just throw a party like the Muscovites did to drown out the din of Napoleon's cannon. Of course, Napoleon, like every other invader before or since, fell short, so maybe the Muscovites were on to something.
2
The Times has, on a number of occasions, printed such articles as this. It may be good advice.
It may also be that the Times is part of the corporate body that would loose if more people sold, and so the Times' encouragement to hold is to protect itself, and Capitolism in general. And that it would be in many peoples' advantage to sell now.
I trust that you read me to say I don't know...and it well could be possible. Certainly those who have sold, and so have moved so many markets so far, most of whom [with the big accounts, who effect the prices] think its in their best interest to sell.
Which raises the question: why would it be that so many of those who are paid so much to be 'right', and can make arguments that they are likely to be so, have sold so much? They, and others who care about such things, certainly think that it was right to sell. Why would it be in their best interest, and not in yours or mine?
It may also be that the Times is part of the corporate body that would loose if more people sold, and so the Times' encouragement to hold is to protect itself, and Capitolism in general. And that it would be in many peoples' advantage to sell now.
I trust that you read me to say I don't know...and it well could be possible. Certainly those who have sold, and so have moved so many markets so far, most of whom [with the big accounts, who effect the prices] think its in their best interest to sell.
Which raises the question: why would it be that so many of those who are paid so much to be 'right', and can make arguments that they are likely to be so, have sold so much? They, and others who care about such things, certainly think that it was right to sell. Why would it be in their best interest, and not in yours or mine?
5
No need to overthink this. Just sell everything and wait. Do not buy.
Buying now is called "catching a falling knife". It may or may not continue down, but the down probabilities are much greater than the up. No one can call a bottom and no one knows.
So the correct action is to wait and watch. When it eventually goes back up - maybe years from now - then buy. You will feel much better and be able to sleep easily once you take your loss and are safe again with cash ready to get back in at a good price.
If you do this, you will be ahead of the vast majority that sit tight and pray and lose sleep.
Buying now is called "catching a falling knife". It may or may not continue down, but the down probabilities are much greater than the up. No one can call a bottom and no one knows.
So the correct action is to wait and watch. When it eventually goes back up - maybe years from now - then buy. You will feel much better and be able to sleep easily once you take your loss and are safe again with cash ready to get back in at a good price.
If you do this, you will be ahead of the vast majority that sit tight and pray and lose sleep.
1
Another question: What about the people who are buying? They certainly think it is right to buy.
For every buyer there is a seller and vice versa.
The bottom line: if you own, you had a reason to buy. Presumably you thought through the reasons, goals, and risks. These same reasons, goals and risks should determine when you sell, not what other people are doing.
For every buyer there is a seller and vice versa.
The bottom line: if you own, you had a reason to buy. Presumably you thought through the reasons, goals, and risks. These same reasons, goals and risks should determine when you sell, not what other people are doing.
What goes up comes down and what goes down comes up!
The market is perfect for people with money. You can afford the losses, then buy cheap and make a bundle when the market goes up. Meanwhile, the rest of us are at the mercy of the market, depending on its timing. I think low bank interest is a scam to force people into the markets. That's one result of banking deregulation.
And if some politician seeking your vote proposes converting Social Security to private account, vote the other way.
And if some politician seeking your vote proposes converting Social Security to private account, vote the other way.
48
No one can afford losses. And there is no reason at all to take losses. Just get out and wait. It's easy.
No one is at the mercy of the market because you can always get out.
Why would you stay in and "wait out" a loss (suffering the entire time) just to get back where you were possibly years later. Much better to take the small upfront loss and wait to get back in at a much better price.
This is how it's done. Your better price down the road will very easily make up for your upfront loss - and you will sleep like a baby in the meantime.
No one is at the mercy of the market because you can always get out.
Why would you stay in and "wait out" a loss (suffering the entire time) just to get back where you were possibly years later. Much better to take the small upfront loss and wait to get back in at a much better price.
This is how it's done. Your better price down the road will very easily make up for your upfront loss - and you will sleep like a baby in the meantime.
1
Within your string of non sequitors, your comment on markets betrays utter incomprehension of the statistically and historically proven value of long-term and diversified investment in a balance of equities, debt and cash calibrated to individual risk tolerance and longevity prospects. It has NOTHING to do with market timing, and much more with the timing of your own demise.
People of a certain age (fill in the blank) should not be in stocks or at least individual stocks. They should be in markets, a.k.a. low-cost, market mirrors, and they should be well diversified in a variety of markets, including cash and bonds, and they should regularly (fill in the blank) rebalance their holdings. Then as they grow even older (fill in, etc.) they should annuitize most or all of their holdings unless they are either too rich or too poor. At a certain age (fill in, etc.) longevity risks trumps market risk. If you can't make all the money you want, love the money you've got. You don't need to make money, you need to keep the money you have and make sure you can pay your bills for as long as you both shall live.
15
This article is sound, calm historically based advice--which means the author has no future on CNBC or Fox Business.
65
Whenever the stock market falls sharply the "professionals" advise the "amateurs" not to do a thing, to stick with their long term goals. Then the professionals sell and the amateurs take the loss.
My advice, sell, sell everything, and when the Dow goes to 4,000 the professionals will have to rethink their investment strategies since they can no longer count on long term investors to stabilize the markets.
My advice, sell, sell everything, and when the Dow goes to 4,000 the professionals will have to rethink their investment strategies since they can no longer count on long term investors to stabilize the markets.
8
i couldnt agree more. By pretty much every metric the market is inflated. Ask an advisor what their exit strategy is for equities and they likely wont have one. Not when their income is dependant on you not selling!
I hate to brag, but I shifted everything to bonds - and insisted my husband shift everything to bonds - about 2 months ago. It was starting to feel downright greedy to expect anything more out of the equity markets. So I'm sitting pretty and I'll put a toe back into equities in, say, a year or two. Meanwhile, I'm whistling a happy tune. Don't hate me. I put everything into bonds in Autumn of 2007 too, so I have a perfect record so far of knowing when I've made too much money and it's time to calm down and batten down the hatches and not get greedy.
2
I'm calling this too good to be true. You skipped right over one of the main points of the article. Great - you say you got out in Fall of 2007.
But when did you get back IN???
If you say March '09 - well then you're a liar and a troll.
But when did you get back IN???
If you say March '09 - well then you're a liar and a troll.
6
Wrong timing!
1
I'm sure meyerhofer is telling the truth.
I mean my market timing is perfect too, on the internet.
I mean my market timing is perfect too, on the internet.
I'm not terribly worried, chiefly because I'm a fatalist about market behavior. Markets go where they go - up, down sideways.
We are very small investors, in a handful of funds. We invest for the long term. If I had more money right now, I'd buy high-value stocks and funds, which may be temporarily underpriced.
And, of course, as Keynes said, "In the long run..."
We are very small investors, in a handful of funds. We invest for the long term. If I had more money right now, I'd buy high-value stocks and funds, which may be temporarily underpriced.
And, of course, as Keynes said, "In the long run..."
6
Don't invest in anything you can't control.
2
Irene, does that include children?
6
What you seem to be saying is: Don't invest.
I would say that is very bad advice.
I would say that is very bad advice.
6
She is saying invest in education, and secondarily, commercial real estate - very good advice. Both are more controllable than any market.
If you are near retirement or in retirement, think twice about the advice here to not adust your portfolio. Can you sustain a 30 to 40 percent drop in the value of your retirement account and wait, perhaps, years for it to recover? If not, question the advice here and act accordingly. One strategy: Lighten up your equity position, but stay invested. The middle ground, safer approach.
6
If you are near or in retirement, you should have reduced exposure to this type of event long before last week.
Majortrout and Ron Lieber. Neither of you have it right. Anyone who still believes in buy and hold as a viable investment strategy is a person who will never sleep well at night.
Consider this: In 1929 your portfolio (i.e. life savings) disappeared - down 86% overnight. So you held on - for 26 years, until 1955. Now, you are even! Then, ten years later (1965), the market stalled for 17 years…
Remember 2008? You lost 50%! How did that feel? Now, your life savings are teetering again, so how well are you sleeping, Mr. Buy and Hold?
Buy and hold has been dead for at least ten years, when globalization and algo trading took over. Note that the big money does not "buy and hold".
Don’t listen to the big money shills, journalists, or neophyte day-traders. Listen to me. I have ten years of trading under my belt and more than doubled my accounts (with only 2.5% drawdown) in the past two weeks.
You must Learn To Trade! If you can follow rules and control your emotions you can consistently profit with very little managed risk. But the ONLY way to learn to trade is from a consistently winning trader, not from books or on your own. Invest in learning to trade Before you start to trade.
A winning trader consistently makes money whichever way the market goes while taking very little risk. That is how you sleep at night. Once you learn the Rules of successful low risk trading, you are set for life. Thousands of traders do this - you can too!
Consider this: In 1929 your portfolio (i.e. life savings) disappeared - down 86% overnight. So you held on - for 26 years, until 1955. Now, you are even! Then, ten years later (1965), the market stalled for 17 years…
Remember 2008? You lost 50%! How did that feel? Now, your life savings are teetering again, so how well are you sleeping, Mr. Buy and Hold?
Buy and hold has been dead for at least ten years, when globalization and algo trading took over. Note that the big money does not "buy and hold".
Don’t listen to the big money shills, journalists, or neophyte day-traders. Listen to me. I have ten years of trading under my belt and more than doubled my accounts (with only 2.5% drawdown) in the past two weeks.
You must Learn To Trade! If you can follow rules and control your emotions you can consistently profit with very little managed risk. But the ONLY way to learn to trade is from a consistently winning trader, not from books or on your own. Invest in learning to trade Before you start to trade.
A winning trader consistently makes money whichever way the market goes while taking very little risk. That is how you sleep at night. Once you learn the Rules of successful low risk trading, you are set for life. Thousands of traders do this - you can too!
1
Is that you Jim (Cramer), still muddying the waters?
3
Rule of Trading Number One: never, never listen to Cramer. No one should have a TV. The TV is the mind control tool par excellence; as you sit passively, the corporate media programs you to serve them.
There are no consistently winning traders. There may be a few lucky, statistical outliers, but that's about it.
Isn't that what they tell us to do about everything. Take some deep breaths and do nothing about the demise of society, and by all means believe everything you see and read in our brainwashed world.
11
Got any other brilliant suggestions?
3
Mr. Lieber, THANK YOU for helping me off the ledge!
1
With an investment horizon of 40-50 years, I'm not worried at all.
Only move I might make is for tax-loss harvesting purposes, but the S&P would need to drop another 20-30% for me to feel like spending the time.
Ignore the noise and just keep on keepin' on.
Only move I might make is for tax-loss harvesting purposes, but the S&P would need to drop another 20-30% for me to feel like spending the time.
Ignore the noise and just keep on keepin' on.
6
Famous quote from JP Morgan, when asked what the stock market will do: "It will fluctuate".
20
Not planning to change investments. Not worried about the declines-- as stated, I'm in it for the long term and history has shown the market to be a good place to invest over the years. . .
3
The latest hype-driven plunge has inspired me to invest in a socially-responsible mutual fund. I'm willing to trim my long-term return in exchange for contributing to something more important than derivatives or short selling.
Of course, I will make the investment tomorrow!
Of course, I will make the investment tomorrow!
1
My question is - why does the average American who isn't a financial expert have to risk his/her money in the stock market at all? Why can't we get better rates for pass book savings accounts and other safer, government protected investments? Yes, I know that interest rates are set by the Fed, however, many banks and quite a few credit unions seem to have a lot of money for some pretty frivolous things. Are they allowed to set a higher savings rate? Or are they required by law to set their rates at a certain amount. You are lucky if you can get 1% on a passbook savings account. Banks have many sources of interest income and should be able to increase what they pay on their savings accounts.
A case in point, Golden 1 Credit Union in California just recently spent over a million dollars for the naming rights to the new Kings stadium in downtown Sacramento, yet, I am getting about 1% on my passbook account. First of all NO credit union should have that kind of slush fund, second, if they can spend that kind of money on naming rights, then they should be able to give me a much better ROI on my passbook account as well as other savings instruments. Not being a financial person, I have no interest in spending all of my spare time educating myself about the market and what it may or may not do. I do have a financial advisor, but if the bank gave a much better rate on savings accounts I wouldn't need one. Me thinks this is a grand conspiracy to steal people's money.
A case in point, Golden 1 Credit Union in California just recently spent over a million dollars for the naming rights to the new Kings stadium in downtown Sacramento, yet, I am getting about 1% on my passbook account. First of all NO credit union should have that kind of slush fund, second, if they can spend that kind of money on naming rights, then they should be able to give me a much better ROI on my passbook account as well as other savings instruments. Not being a financial person, I have no interest in spending all of my spare time educating myself about the market and what it may or may not do. I do have a financial advisor, but if the bank gave a much better rate on savings accounts I wouldn't need one. Me thinks this is a grand conspiracy to steal people's money.
41
Yes indeed. There seems to be a periodic sucking sound that pulls the meager profits out of my 401k into the accounts of those who are better off financially. Surely some big players will be profiting from this plunge at the expense of the retirement accounts of the masses. Meanwhile those of us who do something more socially constructive for a living-- as opposed to playing elaborate slot machines-- are forced to fritter away our time and money in support of the "financial industry." I'm sure that members of congress all know this and also have very healthy portfolios.
2
I think it is important to realize that, while your savings account gets very little return, you also can obtain very low interest rate loans on automobiles and real estate from your credit union. The two go hand in hand. If you got more on your account, it would mean higher rates on loans. Depending on which side you find yourself, low rates can harm or help. Remember when you could get double-digit returns on your account? You also were looking at double-digit rates on home loans.
1
I think you should ask these questions of:
First: Golden 1 Credit Union. I you don't get a good answer, take your money somewhere else.
Second: Your congressperson. If you don't get a good answer, keep asking every candidate until you do get a good answer, then vote.
First: Golden 1 Credit Union. I you don't get a good answer, take your money somewhere else.
Second: Your congressperson. If you don't get a good answer, keep asking every candidate until you do get a good answer, then vote.
1
Thank you for writing a common-sense piece that avoids all the breathless lather that is sold as "advice" to retail investors.
4
My personal slogan during these periodic market convulsions: "Don't just do something, SIT THERE!" You haven't lost a dime until you sell something and these sell-spasms are most definitely the worst time to sell anything!
Ignore your portfolio value for a while. There's nothing you can do about it. Much of it will grow back over time, perhaps sooner than you might think given some of the equally convulsive buying spasms we've seen lately.
Meanwhile here's a thought. For each share being sold during these selling panic convulsions there's a share being BOUGHT. That's what I do. "Sell Off" = "SALE!" to my eyes. I generally keep several issues in my watch list waiting for more attractive valuations (SALE! s).
Is this "correction" more fundamental and longer-lasting than others? Perhaps, but I wouldn't bet on it. The financial press has a way of making every downturn sound like incoming nukes. I've been investing actively for 30 years and retired (actually, just stopped working) for nearly 15. This general slow approach has worked for me. Best of luck to you. Stay calm.
Ignore your portfolio value for a while. There's nothing you can do about it. Much of it will grow back over time, perhaps sooner than you might think given some of the equally convulsive buying spasms we've seen lately.
Meanwhile here's a thought. For each share being sold during these selling panic convulsions there's a share being BOUGHT. That's what I do. "Sell Off" = "SALE!" to my eyes. I generally keep several issues in my watch list waiting for more attractive valuations (SALE! s).
Is this "correction" more fundamental and longer-lasting than others? Perhaps, but I wouldn't bet on it. The financial press has a way of making every downturn sound like incoming nukes. I've been investing actively for 30 years and retired (actually, just stopped working) for nearly 15. This general slow approach has worked for me. Best of luck to you. Stay calm.
12
I will do nothing just like I did in the Bush depression and I will be fine.
Change my investments? No way! They're allocated well, and I'm sticking to my plan. But YES, I will do something in response to this -- I've been meaning to convert a traditional IRA that I had from a former employer's 401K plan to a Roth. Now seems like a good time to do that because the tax hit will lower. I've been waiting for this to happen because the market was inflated, and I didn't want to do that in an inflated market. And I may put some more money in the stock market now, too.
6
I have 25-30 years to go before I touch my retirement money, so maybe I'm not the target audience for this, but whenever I see stocks take a nosedive, I put a token amount of extra money in my retirement account. Buy low!
21
I'm always amused by this type of article on days like today. Why do writers/experts assume we are all panicking and selling? A lot of this so-called "panic" is merely a reflection of just how much algo-driven trading now dominates the market. There are more a few of us out there who are wading in because it's an excellent buying opportunity. For those of us who are too lazy to pick stocks and who are long-term buy-and-hold type of investors, this is an excellent opportunity to pick up some extra shares in index funds and ETFs.
2
He was a day trader
Money loser, yeah,
It took him so long to find out
But he found out
Money loser, yeah,
It took him so long to find out
But he found out
14
Or you can sell, given that equities are a near record highs. Also a good time to rebalance. Move your gains from tech into more stable, long term industries (think make-up, detergent...). Just don't be the last one to look out for your own interest on the advice of others to "not panic and do nothing". After all, it's not like they bailed the public out last time...
4
the time to do something was last week
8
No, it was five weeks ago. S&P 500 closed at 2128 on 7/20/15, close to high of 2131.
1
No WK ya can't sell at the high......let's be realistic
but the 4 weeks btwn the high and last week should have told you
that the downward inertia of popular indicators forebode this
current tumble. Last week I advised myself that being a coward
was valor.
but the 4 weeks btwn the high and last week should have told you
that the downward inertia of popular indicators forebode this
current tumble. Last week I advised myself that being a coward
was valor.
1
Only if you are a nervous investor who cannot stomach the dive. To have done something last week is to try to time the market. So, if someone got out he/she is feeling smug and relieved (as are the folks who fled in '08 and have stayed in their mattress). The problem is that one either then stays out, which is not a good strategy in the long term or tries to guess when to get back in. For those still working, continuing to buy through the downturn is the right strategy (dollar cost averaging means one buys more shares when shares are cheap). Others should not have money in the market that is needed in the next 5 years.
If I learned anything from day trading it's this - Don't listen to what "experts", writers, banks, companies write. I'd expand the list,but you get the message. For every market predicted positive opinion, they will be a counter negative opinion. For good news, stocks will fall, and for bad news, stocks may rise. News on the other side of the planet, that shouldn't affect the USA and Canada does,and vice-versa.
I you want to sleep at night, select stocks that have a long term positive record, and give a good dividend. I am only speaking for stocks here in Canada. The banks and some of the telephone and cable companies (some up here are all-encompassing) are 2 examples. Also keep some cash around in what you consider secure. You may not get a big return, but you'll sleep at night.
Have I learned something since I started to day-trade some 8 months ago?
Yes - Don't!
The markets are not what they appear to be, and lately I borrow from that famous lawyer expression substituting day-trader and advisor for the word lawyer:
A day-trader who trades on his own has a fool for an advisor!
I you want to sleep at night, select stocks that have a long term positive record, and give a good dividend. I am only speaking for stocks here in Canada. The banks and some of the telephone and cable companies (some up here are all-encompassing) are 2 examples. Also keep some cash around in what you consider secure. You may not get a big return, but you'll sleep at night.
Have I learned something since I started to day-trade some 8 months ago?
Yes - Don't!
The markets are not what they appear to be, and lately I borrow from that famous lawyer expression substituting day-trader and advisor for the word lawyer:
A day-trader who trades on his own has a fool for an advisor!
13
If you have more than five years before you need a chunk of money, buy a few broad-based index funds from Vanguard and rest easy. If you need that chunk in less than five years it shouldn't be in stocks.
22
#1 rule: Don't go long in a down market.
#2 rule: Going long is OK in a run-up market
You began day tradng 8 months ago? That was the beginning of this plunge.
Day trading (long) is fine in an up market
#2 rule: Going long is OK in a run-up market
You began day tradng 8 months ago? That was the beginning of this plunge.
Day trading (long) is fine in an up market
As long as you know that it's an up-market. That's the trick. And you know when the top is reached. Which is even trickier.
1