Adding up the damage

[The White Coat Investor]

I updated my spreadsheet today. That was a pain, but I had to do it to see where new contributions coming in this month should go to rebalance. It turns out I've lost $86K since the start of the year. That's about the amount of money I lost in the 2008 bear market (obviously had a smaller portfolio at the time.) Of course, over the years my portfolio is still way ahead even with these losses.

However, I'm also pleased to see I have yet to have a year when either my portfolio value, my retirement portfolio value, or my net worth has declined. 2008 was close for the retirement portfolio and the retirement portfolio is down for the year so far, but there are 10-11 months to go and many contributions still to be made.

Sometimes it is best to compare your nest egg to your goals, rather than just looking at portfolio performance, especially short term performance. It's much less depressing.

[PhysicianOnFIRE]

I've got you beat!  According to PersonalCapital, my portfolio is down $89K year-to-date despite some generous January contributions.

The 457(B) is fully funded, as are the backdoor Roths.  Next up are 529 contributions.

I don't mind a sale on stocks, but I hope they don't hit clearance prices this time around.

 

 

[chrisCD]

Those losses are bigger than my account.   

But, thankfully my account is still in the black, mostly because of the CDs that I hold that have increased in value.  My portfolio mix is close to a 60% stocks (40% US, 5% Intl, 5% Reit) and 40% Fixed income (mostly CDs).

I may move more into stocks this year with my monthly contributions.  Just don't know yet.

cd :O)

[Joseph]

Interesting to look at the numbers that way.

[JKG]

Our portfolio is down about 70K so far this year, it would have been more if we haven't continued contributing to our retirement accounts. I'm ok with a stock sale!

[Sneezy]

Down about 65k!

 

It helps to remember how fast things went in the other direction after 2008.

[TheGipper]

Obviously key is to stay invested no matter what and continue with your monthly new investments (or increase them if your feeling lucky).

Ironically my entire 401k/PSP has been out of the market pushing two weeks now due to blackout period from transitioning to another provider.  This was giving me major heartburn, but as of today, likely has saved me about 7% losses.  I guess I can time the market

 

[Josh0731]

I agree with your point about looking at your whole financial picture during times like this.  I noted when I closed out 2015 that, because of aggressive debt repayment and saving for a house down-payment, my net worth went up a lot while market returns were overall pretty wimpy.  If you are doing the right thing then your net worth will reflect it even if your portfolio doesn't.  (I even track the 'WCI physician-modified net worth' calculation   Also, its kind of futile to fret too much about market performance where you have little to no control over performance as compared to your net worth where how you handle your income/debt/possessions/choices gives you tremendous control over your financial situation.

[Osiris]

I do not check my accounts.

Apparently the market is not doing too well.

I like to think I have the equanimity of   the russian spy in Bridge of Spies, when Tom Hanks asks him: "How can you stay so calm. Are not  you worried that when you go back to USSR, they will kill after torturing you" responds with  "Would it make a difference". It is more likely I just can not stand emotional suffering.

I will not make any changes. I do not need the money so why would I drive my self crazy by adding up the damage? I did not check my accounts in 2008 and 2009 for 2 years when I lost 50 %. I am still grateful it only took till 2011 for the stock market to come back up.

[NJDoc]

Professionally managed component of profit sharing : -11.52% ( by one of the most "doctor focused" firms in my state.

Professionally managed 2nd profit sharing account: -6.47%

Personally managed 401K: +0.34%

Professionally managed brokerage acct., net of fees:+0.2%

 

All are YTD. The two accounts doing well are systematic, rules based momentum techniques. I'm not sure we want to get into that argument again here, so I won't stir the pot.  Fortunately the bottom two accounts are 75% of the total.

 

 

[Hatton]

YTD $261117.  I would not of added this up except for the post.  The bigger your nest egg the more you lose in a correction.  Stay the course.  I have survived 2000-1 and 2008.  This to will pass

[phw]

The White Coat Investor wrote:

Sometimes it is best to compare your nest egg to your goals, rather than just looking at portfolio performance, especially short term performance.

Click to expand...

I like this.

I didn't even realize we were in a down market for awhile because my ongoing contributions were out pacing the loses.  Of course, that's changed now, but I'm still getting more satisfaction buying chunks of Nest Egg than whatever I was spending money on before.

[Zaphod]

NJDoc wrote:

Professionally managed component of profit sharing : -11.52% ( by one of the most “doctor focused” firms in my state.

Professionally managed 2nd profit sharing account: -6.47%

Personally managed 401K: +0.34%

Professionally managed brokerage acct., net of fees:+0.2%

 

All are YTD. The two accounts doing well are systematic, rules based momentum techniques. I’m not sure we want to get into that argument again here, so I won’t stir the pot.  Fortunately the bottom two accounts are 75% of the total.

 

 

Click to expand...

I ran a momentum based simulation last year, of my own formulation, and it was killing it (47%) until the August volatility arrived Then it had trouble and was whipsawed several times which brought its performance basically to par with the s/p. I had a touch of nitro in there so would have been better off in sector/global tactical rotation but it was a simulation after all. In times like that I'd have to institute some other circuit breaker rules so as to not allow that to happen, because you dont have to participate at all in those times. Just like the volatility strategies, lots of them do great but they dont have a limit/stop loss rule that protects profits or downsides, which is odd given the short bursty nature of it.

[NJDoc]

Zaphod wrote:

I ran a momentum based simulation last year, of my own formulation, and it was killing it (47%) until the August volatility arrived

Click to expand...

No argument here - the weakness of a momentum approach is a sideways volatile market, i.e.) 2011 and 2015.

That said, I am a fan after taking big hits in 2000 and 2008 on a buy and hold approach. I just like the risk management idea, especially as I get closer to retirement.  Just my opinion.

[Zaphod]

Me as well. I like the idea of a tactical portfolio. Overall, less trading is usually more profitable, but avoiding huge draw downs is likely the best way to go. I am not currently using a typical approach, but more overarching so as to have less overall trades while still locking in gains looking for longer rides up. More of a risk management approach.