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re: Index prices now equal to..

Posted on 3/12/20 at 10:04 am to
Posted by Hopeful Doc
Member since Sep 2010
15388 posts
Posted on 3/12/20 at 10:04 am to
quote:

What are the stay invested folks thoughts on 2.5 years of nothing.


That this is nothing when 2.5 turns into 25.
Posted by NorthEndZone
Member since Dec 2008
13780 posts
Posted on 3/12/20 at 10:05 am to
Diversify and stay the course if you're in it for the long run.

2.5 years of nothing but the last 4 years are still equal to long term market averages. The bottom was in Feb. of 2016.
Posted by The Maj
Member since Sep 2016
30543 posts
Posted on 3/12/20 at 10:06 am to
quote:

This is a stupid question.


They get their talking points, which they do not understand, then run here to post them...

They'll be back in a minute once they consult their chart that says "if they say this" you "respond with this"...

If all else fails yell "he is incompetent and incapable of leadership".
Posted by Konkey Dong
Member since Aug 2013
2352 posts
Posted on 3/12/20 at 10:06 am to
I actually upped my 401k contributions and my Roth contributions, that's my stay invested folks say
Posted by OceanMan
Member since Mar 2010
22730 posts
Posted on 3/12/20 at 10:07 am to
quote:

It's absolutely ridiculous the NBA cancelled its season because 1 guy got, what is the equivalent of the flu.


I kind of disagree. Multiple guys on the Jazz got it. It would be a disruption to the end of the season because it’s going to spread to other players.

It seems extreme, but it’s just a b-ball league, and they can make up the games.
Posted by truthseeker7
Member since Feb 2020
23 posts
Posted on 3/12/20 at 10:07 am to
Actually facts. Im an invester also. Will definantly buy when bottom . My concern is avg. 401k owner that could have moved to cash then wait to buy in. Was told to stay invested. Not a problem for you rich folks i guess.
Posted by OceanMan
Member since Mar 2010
22730 posts
Posted on 3/12/20 at 10:09 am to
quote:

This is correct. Market timers are for the most part slack jawed neanderthals who underperform the market.

I should know - I was one in my 20s.


Checking in as well. The market is a long term investment, buy indexes and hold.
Posted by truthseeker7
Member since Feb 2020
23 posts
Posted on 3/12/20 at 10:09 am to
Agree. Should have included ancillary gain. Thanks
Posted by AlxTgr
Kyre Banorg
Member since Oct 2003
86455 posts
Posted on 3/12/20 at 10:11 am to
quote:

Panic and uncertainty will go away over time and the prices will go back to where they should’ve been all along.


How will I know when to get back in?
Posted by MidWestGuy
Illinois
Member since Nov 2018
1807 posts
Posted on 3/12/20 at 10:17 am to
quote:

Sucks for people that are in retirement or about to retire, but it is better than nothing.


I'm retired, and I expect I'll be just fine in the long run.

For a retiree, I'm still pretty aggressive, about 70/30 stocks/bonds. But you know what, the stock index pays ~ 2% dividends, and the bond fund ~ 3%, so ~ 2.3% overall . If I need more than that for spending, I can sell some of that bond fund, so I don't sell stocks while they are down. You really should only count on withdrawing an inflation adjusted (from initial withdrawal) 3.5% - that rate has held up for every 40 year period in history. So you might sell 1% of your portfolio to make up the delta.

A more conservative investor would probably be 50/50, so that bond fund would last even longer. No need to be alarmed. If this market goes down and stays down, it will affect everyone. But if you saved and invested, you'll still be better off than most of your neighbors.
Posted by Hopeful Doc
Member since Sep 2010
15388 posts
Posted on 3/12/20 at 10:18 am to
quote:

Will definantly buy when bottom



How, without retrospect, does one determine "bottom?"
Posted by Lakeboy7
New Orleans
Member since Jul 2011
28257 posts
Posted on 3/12/20 at 11:06 am to
(no message)
This post was edited on 2/6/21 at 4:54 am
Posted by RolltidePA
North Carolina
Member since Dec 2010
5099 posts
Posted on 3/12/20 at 11:38 am to
quote:

quote:
Panic and uncertainty will go away over time and the prices will go back to where they should’ve been all along.

How will I know when to get back in?


What are your investing principles? You buying short term or long term?

Don't try and time the market. If you look at a security and it's price is good compared to the relative strength of the organization and fits your investing principles, then make the buy.

And for gods sake never try and extract every penny out of a security. Have a goal with each investment and when that goal is met, profit and move on. If you try and buy and sell at the perfect time you're guaranteed to get crushed. Bulls make money, Bears make money, Pigs get slaughtered.
Posted by bayoumuscle21
St. George
Member since Jan 2012
5009 posts
Posted on 3/12/20 at 11:44 am to
quote:

truthseeker7


Come see me in 3 months. Dow will be pushing 30k again.
Posted by NorCali
Member since Feb 2015
1578 posts
Posted on 3/12/20 at 11:52 am to
How does a person trade on the indexes? Like the DJIA?
Posted by Hopeful Doc
Member since Sep 2010
15388 posts
Posted on 3/12/20 at 12:03 pm to
quote:

How does a person trade on the indexes? Like the DJIA?



The indeces themselves aren't traded.
Mutual funds and ETFs mimic the indeces and can be.
4 ETFs that track DOW. You can, if you dig, find places that correlate their similarity to the index. They're highly correlative but not identical. So in essence, they are the same. Though you may be off a point or two here and there.
Posted by AlxTgr
Kyre Banorg
Member since Oct 2003
86455 posts
Posted on 3/12/20 at 1:36 pm to
quote:

You buying short term or long term?

Long.
Posted by RolltidePA
North Carolina
Member since Dec 2010
5099 posts
Posted on 3/12/20 at 2:21 pm to

You buying short term or long term?
Long.


If you're looking long, why wait for the absolute bottom? Five years from now anything with solid fundamentals that you buy right now you'll have gotten a great price and probably have been cashing in dividends.

You may lose some in the short term, but don't fret about those if you're looking to play the long game. It's not a game of price, it's a game of future value and assets.

All that said, we most likely haven't seen the bottom yet. You can wait it out some more, but you should be doing your research now, have your positions planned, and be ready to pull the trigger.
Posted by tigers win2
Baton Rouge
Member since Oct 2009
3916 posts
Posted on 3/12/20 at 2:48 pm to
And an appropriately diversified portfolio hasn’t even given up all of last year’s gains yet.
Posted by NorCali
Member since Feb 2015
1578 posts
Posted on 3/12/20 at 11:50 pm to
Thanks
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