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I just don’t know what to do with myself (stock market correction)

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  • I just don’t know what to do with myself (stock market correction)

    Given the recent market trends, would any of you mind sharing your strategies for preparing for and surviving these corrections? I’ve heard things like DCA (dollar cost averaging) and making a laundry list of funds to buy when their prices are low(Er). What do you all think?

  • #2

    • Do Not Panic.

    • Keep Investing As Usual Per Your Allocation.

    • Ignore The News.

    • Do not Check Your Account Balance.

    • Think About Something You Thought Was Too Expensive 2 Weeks Ago And Buy It With Extra Money.

    Comment


    • #3
      are you starting or near retirement?

      if starting, ignore.  stay with your plan.  you are going to encounter multiple corrections over the course of your career.  you are blessed with intelligence, work ethic, a wonderful career with outstanding earning potential.  you just have to stay out of your own way. 

       

      Comment


      • #4




        Given the recent market trends, would any of you mind sharing your strategies for preparing for and surviving these corrections? I’ve heard things like DCA (dollar cost averaging) and making a laundry list of funds to buy when their prices are low(Er). What do you all think?
        Click to expand...


        The best strategy is to have a written financial plan that tells you what you are going to do whether markets are up or down.  Those that are moved by the whims of the market end up making mistakes when the market is rising or falling.  If you stick to your plan of investing $x every month, rebalance back to you asset allocation in times of dislocation, and don't panic you will be fine over the long-term.

        Comment


        • #5
          TLH and rebalance the portfolio

          Invest more if you have additional cash around and take advantage. Recheck your budget is in alignment. Reread your IPS to stay the course.

          Don't blow your budget like our government is doing. Ie. Earn less, spend more.

          Comment


          • #6

            1. Continue to follow your plan.

            2. If you don't have a plan, get one.


            Lack of a plan brings emotion into your decisions and that's always a bad idea. I just got the below email/cartoon from Carl Richards - hope it helps give some perspective.

             




            Listen to this. We have entered a new era
            Click to expand...


            No, we haven't. The 4 most dangerous words in investing are "This time is different" ~Sir John Templeton.

            It is ok to be afraid. It is not ok to act on it.
            Working to protect good doctors from bad advisors. Fox & Co CPAs, Fox & Co Wealth Mgmt. 270-247-6087

            Comment


            • #7
              My plan for these market corrections is to just ignore it. I agree that you need a plan or idea of what to do even if there was no market correction. If you are 60 or near retirement you should have at least 6 months emergency money and a plan to have 3-5 years of easy withdrawal for living expenses. Most people have bonds. I have alternate stream of income. The bear market will correct itself.

              If young, just do nothing and carry on as usual. I did that in 1987, 2000 and 2008 with no ill effects long term.

              Comment


              • #8
                I like that I can buy equities for cheaper now. Bring the correction on I say!

                Comment


                • #9
                  1. Do nothing

                  2. Ignore Toe Cheeze

                  3. Ignore Crixus

                  4. Ignore CNBC

                  Comment


                  • #10
                    My strategy is “perspective” and think back to November. Your portfolio is probably about the same it was then. After that, the market went a little bananas. Looking at the 10 year growth of my net worth, we are still in a great trend line. Yes, the Roth money we fully funded in January was a bad deal and I did take a little off the table on Monday and Wednesday in my taxable accounts because I realized I had plans for that cash and I wasn’t willing to keep in in the market for the short term. But in total, that was less than 1%. Instead of ignoring all the noise, I’m leaning in and listening to it all. It’s a good education because hearing ‘bull market’ for so long made me forget that markets aren’t always on steroids.

                    Comment


                    • #11
                      You know, it's kind of funny I guess, but I don't even care about the markets right now.  Given that this is my first experience with a market correction I was worried that I'd feel pressure to sell or be upset about my portfolio value dropping, but I'm really not worried at all.  I'm more concerned about how I can get more money INTO the market at this point.  I'm kind of relieved to learn this about myself honestly.  Business as usual.




                      Given the recent market trends, would any of you mind sharing your strategies for preparing for and surviving these corrections? I’ve heard things like DCA (dollar cost averaging) and making a laundry list of funds to buy when their prices are low(Er). What do you all think?
                      Click to expand...


                       

                      Comment


                      • #12




                         

                        There are such things as secular bear markets that can last an adult’s entire investment accumulation phase
                        Click to expand...


                        Sounds like you have fear and negativity issues.  What good does it do you to assume the worst is about to come?  Relax.  Everything is going to be fine. And if it's not, oh well, there's nothing you can do to change it so why ruin your life now with worry?

                        Comment


                        • #13




                          • Do Not Panic.

                          • Keep Investing As Usual Per Your Allocation.

                          • Ignore The News.

                          • Do not Check Your Account Balance.

                          • Think About Something You Thought Was Too Expensive 2 Weeks Ago And Buy It With Extra Money.


                          Click to expand...


                          I paid off my mortgage last year (I didn't say anything because I didn't want Donnie, Zaphod, et al to make fun of me mathematically) but I now have extra cash just sloshing around.  This is the ONLY reason I'm doing anything.  And that "anything" is buying funds and stocks that I have had as goals for a long time.

                          It's interesting as I dollar-cost average some of those stocks--they're still not yet "on sale" compared to a year ago.

                          I'd probably be buying Scotch if Sterling were weaker. 

                          Comment


                          • #14







                             

                            There are such things as secular bear markets that can last an adult’s entire investment accumulation phase
                            Click to expand…


                            Sounds like you have fear and negativity issues.  What good does it do you to assume the worst is about to come?  Relax.  Everything is going to be fine. And if it’s not, oh well, there’s nothing you can do to change it so why ruin your life now with worry?
                            Click to expand...


                            Don't be rational, hightower.

                            Toe, assuming you have an income, it would be great to be buying at bear market prices for "an adult's entire investment accumulation phase"....  Regardless, please list all the secular bear markets that lasted 20-30 years--I'd really like to know, seriously.  You can normalize by life expectancy if you need to go back to the middle ages or perhaps occupied Gaul during Caesar's time.

                            Comment


                            • #15







                              • Do Not Panic.

                              • Keep Investing As Usual Per Your Allocation.

                              • Ignore The News.

                              • Do not Check Your Account Balance.

                              • Think About Something You Thought Was Too Expensive 2 Weeks Ago And Buy It With Extra Money.


                              Click to expand…


                              I paid off my mortgage last year (I didn’t say anything because I didn’t want Donnie, Zaphod, et al to make fun of me mathematically) but I now have extra cash just sloshing around.  This is the ONLY reason I’m doing anything.  And that “anything” is buying funds and stocks that I have had as goals for a long time.

                              It’s interesting as I dollar-cost average some of those stocks–they’re still not yet “on sale” compared to a year ago.

                              I’d probably be buying Scotch if Sterling were weaker. ????
                              Click to expand...


                              Ha! Im sure you're fine. Mostly my comments depend on age and just giving a differing opinion so this place doesnt become overly dogmatic.

                              For example, now that I've started a nest egg and have some assets and its been 5 years and I also want to open my own practice soon I'll be starting to get aggressive on the debt side myself. Which has nothing to do with an emotional assessment/toll of the debt, but just a business move.

                              Comment

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