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re: Anyone else thinking of pulling back on the stock market?

Posted on 7/19/14 at 8:00 am to
Posted by HailToTheChiz
Back in Auburn
Member since Aug 2010
48888 posts
Posted on 7/19/14 at 8:00 am to
I think it sticks until next presidential election
Posted by LSURussian
Member since Feb 2005
126940 posts
Posted on 7/19/14 at 8:52 am to
quote:

UL-SabanRival
quote:

But go ahead and make another three percent before losing half and hoping it will all one day be okay.

First of all, haven't you been predicting a stock market crash for the past 5,000 points on the DJ's upswing?

Second, even if the market "loses half" it's not lost unless you sell. That's the time to buy not sell.
Posted by Lsut81
Member since Jun 2005
80087 posts
Posted on 7/19/14 at 9:21 am to
quote:

I have been 98 to 100% invested in the stock market


Are you in funds or individual stocks?


If its funds and you are years upon years away from retirement, I don't see the issue with being heavy in the market. There's gonna be a pull back eventually and then there will be a subsequent rebound.

I've got 30yrs until retirement... I'm letting it ride. Had I pulled out and diversified months ago when I "thought" the market was prime for a pull back, I would have lost out on thousand upon thousands of gains.
Posted by UL-SabanRival
Member since May 2013
4651 posts
Posted on 7/19/14 at 3:08 pm to
No. I was trading heavily 5000 points ago. Now I'm snapping up a few more jacks before this mirage disappears. When I sell off, all I will have lost is my marriage to someone else's folly.

I really don't see why someone would recommend that people stay in at this point, like it's some kind of badge of honor or display of discipline to watch your money get depleted, regardless of where it will be in 5 years. I'll be invested in five years. I just won't weather the lean times like some people.
Posted by Janky
Team Primo
Member since Jun 2011
35957 posts
Posted on 7/19/14 at 3:14 pm to
So, why not just transition to lower beta equity funds and balanced funds?
Posted by Joshjrn
Baton Rouge
Member since Dec 2008
26975 posts
Posted on 7/19/14 at 3:20 pm to
I'm considering increasing my bond exposure from 10% to 20-25%, but that's my max, and I'm not even sure I'm going to do that yet. We'll see if my barber starts to give me stock advice...
Posted by ragacamps
Member since Jan 2011
2997 posts
Posted on 7/19/14 at 3:25 pm to
Im pretty inexperienced but that sounds ludicrous having all in the equity markets
Posted by Joshjrn
Baton Rouge
Member since Dec 2008
26975 posts
Posted on 7/19/14 at 3:32 pm to
quote:

Im pretty inexperienced but that sounds ludicrous having all in the equity markets


Why?
Posted by ragacamps
Member since Jan 2011
2997 posts
Posted on 7/19/14 at 5:45 pm to
Seems like it isnt really offering the protection of diversification
Posted by Joshjrn
Baton Rouge
Member since Dec 2008
26975 posts
Posted on 7/19/14 at 6:05 pm to
The purpose of diversification is to insulate against risk. Investing in a single stock is insane because you could literally lose your entire investment. If I invest $1,000 into, say, Vanguard's Total Market Fund and leave it sit for the next several decades, the odds that I have less than $1,000 in my account are basically zero.

Now, diversification between classes of investments is crucial in the short term. If you need access to your investments within the next 5-10 years, you would indeed be insane to be invested 100% in equities. In fact, it was that kind of idiot who made the headlines right around 2008.

But, if your investment horizon is 20+ years, there's nothing inherently wrong with investing entirely in equities, as long as you have the self control not to sell during downturns.
Posted by EventHorizon
Baton Rouge, LA
Member since Feb 2009
1029 posts
Posted on 7/19/14 at 6:40 pm to
The market goes up on average. Why would you pull out at all time highs? it's expected and it will keep hitting all time highs over and over again, that's a good thing. Yes there will be pullbacks and corrections but an all time high is no reason to sell.
Posted by austiger
Austin
Member since Apr 2012
743 posts
Posted on 7/19/14 at 7:39 pm to
Seems too obvious. Too many people are saying that. Based on historic p/e ratios, this market could still go up another 25% and still not hit bubble levels.

Dangerous game to sit out. Seems like everyone will rush out at the next drop... but news is pretty terrible and it lasts about a day in the market.

austiger
Posted by barry
Location, Location, Location
Member since Aug 2006
50337 posts
Posted on 7/19/14 at 8:35 pm to
Why back out? There is always money to be made, short some stocks if you think it's going to regress.
Posted by tigers win2
Baton Rouge
Member since Oct 2009
3837 posts
Posted on 7/19/14 at 11:04 pm to
Market will go up another 7-9 years before any significant/ long term pull back.
Posted by kennypowers816
New Orleans
Member since Jan 2010
2443 posts
Posted on 7/20/14 at 9:52 am to
quote:

But go ahead and make another three percent before losing half and hoping it will all one day be okay. Even if/when it does eventually rebound, I'm still not clear on why someone wouldn't pull out of all time highs, wait for any measurable time into the huge dip, and re-invest. Even if you get back in halfway down the slide, you're still doing a lot better than you would have otherwise, right?

You've got about 7 months. Good luck.


Quoted... for when you are right... or wrong

7 months - this will be my test to see if I can trust your predictions. I've been looking for someone who knows whats going to happen in the future. Hopefully I just found that person in you. Looking forward to the next 7 months.
Posted by UL-SabanRival
Member since May 2013
4651 posts
Posted on 7/20/14 at 4:08 pm to
Fair enough, but don't quote the "marriage" line. I have no idea what autocorrect was thinking and I've forgotten what I meant to write.
Posted by Cold Cous Cous
Bucktown, La.
Member since Oct 2003
15042 posts
Posted on 7/21/14 at 11:34 am to
Seems that there's been a lot of doom & gloom throughout the post-crash runup. I've been hearing about the coming "correction" since maybe 2011?

Very different from what I remember of the 06/07 market, which had much more of the "barber giving stock tips" feel.
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