On Wednesday, May 12, 2021 at 9:28:37 AM UTC-4, Leon wrote:
On 5/11/2021 10:35 PM, DerbyDad03 wrote:
On Tuesday, May 11, 2021 at 4:59:51 PM UTC-4, Leon wrote:
On 5/11/2021 1:20 PM, dpb wrote:
On 5/11/2021 9:29 AM, Leon wrote:
On 5/10/2021 3:07 PM, dpb wrote:
Snip
When conditions change (as they will, eventually) to a more historical
pattern, I'll adjust the mix to match; meanwhile I see no reason not to
ride the rocket as long as can...
Do have to pay attention and be willing to "pull the plug!" when it's
time this way, though, granted, and not leave it all up to somebody else.
I certainly take broker's advice/recommendations into account, but don't
wait around for him to tell me it's time to move--he has a ticker that
gives him flags, but he's also got a bunch of other clients (as all do)
so can't rely on being the first on the call list.
--
Exactly, I have had more than one conversation with moth of my money
managers concerning the OBVIOUS.
It there is bad news on the networks. The long time awaited tech stocks
crash leading up to the first quarter in 2000. and then The Corona virus
at the first of last year.
Their answer is, it will come back. My response, why in the world ride
it to the bottom? Get back in "near the bottom. Get out until the the
stocks come back up. And I am not talking about knee jerk market
reactions.
Yes it is hard to tell when the recovery starts but some thing are obvious.
Have you ever verified that you made the correct moves? Ever tracked
where you would have been if you had followed the advice to stay in?
Yes, I pulled the plug myself after watching $70K disappear over an 8
month period. And it stayed down pretty much for several years after that.
When I decided to get back in I went with a new money manager and of all
people he said that I had timed the market well as far as getting back
in goes.
Last time around the big 3 indexes were still down compared to where I
am now as apposed to before it crashed last year. Basically when the
market came back to where it was last year I was better off.
Perhaps you did time it correctly or perhaps you just assume that you
did. Only you can determine that. Well, your advisor probably could too,
assuming he knows what moves you made and when.
Not an assumption. I track the major indexes too.
Are you invested in the indexes that you track? IOW, were you tracking
your actual investments too? Just curious, that's all.
There is often quite a dispersion between managed funds and the indexes -
both above and below, especially when there is volatility. Some fund managers
handle it quite well, some not so much.
I know you aren't talking about hard core market timing or panic moves,
but missing even a few of the market's best days can be detrimental.
This article deals more with the standard definition of market timing,
so feel free to disregard most of the text and just review the "How
much exactly?" section.
https://www.fool.com/investing/2020/...market-days-c/
Yes, I know, maybe you missed some good days but you offset it by
missing some of the bad ones too. I get it. Like I said, the only way
to really know is to go back and chart where you would be today
if you stayed in - assuming you care. If doing it your way makes you
feel better, that's fine too. My only point is that if you want an
accurate answer to your question "Why in the world ride it to the
bottom?" you'd have to actually figure it out using your numbers and
your moves.
I'm certain that I indeed did not make the perfect moves but better than
doing nothing.
My investment in the market is pretty much emergency money and or what I
plan to pass on to my son. I do not want to put myself in the position
of being at a low with the market and needing money at that point.
The market remained down for several years after the tech stock crash 20
years ago. I knew that the pandemic reaction would be temporary and I
decided to not ride it to the bottom but get back in when the fear in
the market subsided.
And the feel better factor is a big part, I sleep better at night and
that is important for me.