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Old 03-14-2020, 08:59 AM
PalmettoTree PalmettoTree is offline
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Most 401k accounts have money market options. Few plans permit drastic speculation so likely you will recover and make money.

It is true about the simple math point. A 50% fall takes a 100% recovery to get even e.g. you have $100 and take a 50% loss that gives you $50. To get back to $100 that $50 dollars would need a 100% gain.

I got mostly out at different points. What I stayed invested in seemed sound but still took some losses. I am spending yesterday and the weekends looking for value.

Do not follow me. Value investing is defensive investing with an up side. This means I almost always miss out on the big movers. I have never been one with a vision for the future.
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Old 03-14-2020, 10:40 AM
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HOLD!!!!

I just INCREASED everything because of all the great deals right now. Losers always bail creating massive opportunities $$$$ in this down market.
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Old 03-14-2020, 11:46 AM
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Selling out low and trying to time the market to get back in is a fundamental rookie mistake when investing. Just don't do it. I've invested approx 20% of the value of my broker accounts more into the market in the last 2 weeks. This is a rare opportunity to buy low.

Last edited by laralynx; 03-14-2020 at 11:47 AM.. Reason: t
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Old 03-14-2020, 12:03 PM
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I had people at work, in 2008 they moved all their $$ into the money market that was safe, but paid little in dividends and LEFT it there. I gambled more and made more even with the ups and downs of the market.
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Old 03-14-2020, 01:07 PM
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Quote:
Originally Posted by OhioMan View Post
HOLD!!!!

I just INCREASED everything because of all the great deals right now. Losers always bail creating massive opportunities $$$$ in this down market.
Smart move.

When everyone is bailing out, it's time to buy.

Never follow the crowd when it comes to investing.

Last edited by bonegunner; 03-14-2020 at 01:09 PM.. Reason: typo
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Old 03-14-2020, 01:29 PM
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[QUOTE=laralynx;20141290]Selling out low and trying to time the market to get back in is a fundamental rookie mistake when investing. Just don't do it.

"More money is lost trying to time the market, than just staying put."
- Peter Lynch

He managed Fidelity Magellan Fund from 1977-1990.

The avg. annual return was 29.2% which was more than double the S&P return.
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Old 03-14-2020, 08:50 PM
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[quote=bonegunner;20141576]
Quote:
Originally Posted by laralynx View Post
He managed Fidelity Magellan Fund from 1977-1990.

The avg. annual return was 29.2% which was more than double the S&P return.
The market of 1977-1990 operated on this strange concept called "fundamentals", something which is alien to the market today. They also traded with actual humans instead of algorithms. That guy would probably get trounced today.
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Old 03-15-2020, 05:30 AM
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Originally Posted by svxak47 View Post
Whats your opinion on your 401k with the stock markets tanking over the past few days? Would you cash out before it gets worse or hold on waiting on a potential cure/vaccine/burnout with Covid19? Ive lost 10% on my previous employers 401k but know the penalties are at least 30%. Although cash on hand and paying all my bills and all but 10k on my mortgage if I take it out.

Thoughts?
Don't cash out.
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Old 03-15-2020, 08:41 AM
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Quote:
Originally Posted by bonegunner View Post
Smart move.

When everyone is bailing out, it's time to buy.

Never follow the crowd when it comes to investing.
It's a lesson proven over and over again.
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Old 03-15-2020, 09:25 AM
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Some people don't belong in the market. There is no shame in it,
if its not for you.

Buy low and sell high is the rule.

If you believe in The United States, and our President, you will
ride it out.

If you know in your heart that the end is now, and
we will no longer be the only Superpower,
sell.

When the Market goes down and up like in the last
couple weeks, you can make a lot of money if you
know what you are doing.

If you let your emotions get the best of you, you can
lose everything, then hate yourself when the Market
goes back up.

This is a site where many people think the end is near.
You may want to ask this question some where else
that people are more optimistic.
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Old 03-15-2020, 09:49 AM
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Quote:
Originally Posted by PalmettoTree View Post
I am about 50% in cash now. I started before this decline. Dumb luck I guess.

On what I am still holding I have determined the market has pulled them down without cause. So I am holding them.

All other things being equal, if you have not cashed out by now, I would not.
Same here. I was 50% cash in early January before all of this took off. I'm not selling anything but I am waiting for the bargains. This will present an opportunity to make a lot of money and I don't feel the correction is over.
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Old 03-15-2020, 10:40 AM
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Quote:
Originally Posted by Truck Vet View Post
Some people don't belong in the market. There is no shame in it,
if its not for you.

Buy low and sell high is the rule.

...
Mark Twain said, "Investing in the stock market was simple. Buy a stock, when it goes up sell. If it does not go up don't buy it."
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Old 03-15-2020, 11:27 PM
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Quote:
Originally Posted by Deadmeat99 View Post
You're too late. Selling now would lock in losses. Let it ride.
Quote:
Originally Posted by Hick Industries View Post
The market is down roughly 25%. Way too late to sell out, all you would do is lock in the loss.
Assuming this is a correction, It is almost time to buy back in.
Lots of great companies have been beaten down, and are now on sale.
Quote:
Originally Posted by urbanprep View Post
Increase your contributions if you can while it is down so low. It’ll recover and your be rewarded for the extra contributions when it does.

Definitely don’t sell.


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Agreed. You're too late IMHO. This is something you should have done weeks ago.

If you only lost 10% then you're seemingly pretty well invested. Consider increasing contributions IMO as this is a pretty good buying opportunity for dollar cost averaging. Harder to "time" markets in a slow moving 401K unless it's self directed.

If you can direct into certain stocks or industries, open Forbes and find the best Fortune 500 companies that are down the most and pour your assets into them...

Comparing THIS event to 9/11/01 and 2008, it's on par with these and these dropped markets somewhere between 30-50%. So we're probably not yet at the bottom but probably not too far...
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Old 03-16-2020, 08:34 AM
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Glad I am out, waiting for the bounce to get back in. Another 2200 down triggering the breaker before trading could even start today. Happy Monday!
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Old 03-16-2020, 08:50 AM
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Quote:
Originally Posted by 9mmMike View Post
Glad I am out, waiting for the bounce to get back in. Another 2200 down triggering the breaker before trading could even start today. Happy Monday!
Traded 3 stocks on extended pre-market. Computer trading is the cause of much of this mess. Because there was nothing like this the algorithms cannot evaluate anything put the down trend self-fulfilling.
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Old 03-16-2020, 09:26 AM
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After that first day of downturn, I immediately moved all my 401K money to the "Stable" fund which is basically cash. I lost virtually nothing. Now I have upped the amount Im putting into my 401K so that I have more money there to move to the riskier stocks once I deem recovery about to happen. I'm guessing late spring to early summer.
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Old 03-16-2020, 09:51 AM
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Quote:
Originally Posted by OhioMan View Post
It's a lesson proven over and over again.
I saw Tony Robbins a few years ago on a business/investing show.

He made the point that long term investors who move with market swings, tend to get out too late, and buy in too late.

Further saying, if one had missed the 20 biggest market up days over the last 10 years, they would have lost money.

Here is an article from Investors Business Daily which makes the same point.

https://www.investors.com/etfs-and-f...220&yptr=yahoo
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Old 03-16-2020, 10:19 AM
Freethinkin'Man Freethinkin'Man is offline
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401k account owners who have already sustained considerable losses will only make things worse by selling now. The temptation is understandable given the thousands of points the DJIA and S&P 500 Index have lost in the past several weeks, but if one sells and gets out now, then those losses will be impossible to recover.

At some point this will stop. Does this mean that by December 31, 2020, we'll have the DJIA closing at 30k and the S&P 500 Index closing at 3,500? Not necessarily. But it does mean that 401k account holders must remember: this is a retirement account. If you are in your 30s or 40s, you still have many years before you're legally old enough to make distributions without paying any penalties. You will be taxed even when you make distributions after turning 59.5 years old (the age required one must be to take money out without paying any penalties).

Think long-term. Yes, it's mentally exhausting and certain stressful to see equity markets whipsaw like this and for circuit breakers to be activated so often these days. But this will not last permanently. Get out now, you can't get your losses back.
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Old 03-16-2020, 11:07 AM
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Let's not forget that if you've been in the market since at least 2017 you're way ahead anyway. If you cash out, or take some cash, you just have to figure out what to do with it.
I cashed in some stocks about 2 years ago, thinking that the bubble would eventually burst, and have increased my cash holdings, also distributed them in various locations (2 banks--one local in case of national networks being down--also cash in the house, etc.) Be wise.
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Old 03-16-2020, 11:31 AM
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Quote:
Originally Posted by PalmettoTree View Post
I am about 50% in cash now.
I was too, but now I am 60%. :-(
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