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Yes any new money did fine but as i said if you already had a large portfolio that money pretty much died on the vine for 16 years now.
So did you ignore what I wrote? I said this is perfect timing for me as we are getting a correction when I am able to really start putting substantial sums of money in.
Whats yours (strategy)? I am curious.
I see this as an opportunity. I have been buying not he dips. But I do not think the volatility will last longer than 6 months.
Just sheer and pure wishful thinking.
I am retired so my strategy is just sit with our 40/60 mix. If things fall enough i may increase it to 50/50.
A few years of withdrawals in cash make any further planning not needed yet
So did you ignore what I wrote? I said this is perfect timing for me as we are getting a correction when I am able to really start putting substantial sums of money in.
And i said as long as markets bounce back you will be fine.
But if we are destined for a long term japan style slump then you would have done better in cash instruments.
We all are invested because we believe long term we will be okay
The S&P 500 P/E ratio is the same as it was in January 2008 after the index had already fallen by 20%. Market looked cheaper then, but the earnings were being corrupted by the inflated value of assets held by financial institutions. There's a bit of cookie jar accounting by large companies which allow them to massage earnings to look good and predictable. If and when a recession hits, they'll start shedding these losses in 'one-time' writedowns. P/E can therefore look very expensive at a market bottom.
So did you ignore what I wrote? I said this is perfect timing for me as we are getting a correction when I am able to really start putting substantial sums of money in.
This is not a correction.
A correction means we go to Dow 12K or below.
Pullback: typically defined as a 5% dip from a recent high, and often times seen as a buying opportunity during an ongoing bull market. For Coogan, a pullback is a “temporary blip of the peak of the market, almost a ‘sigh’ in upward momentum; it’s very short term, and you’re still continuing up in a bull market.” Correction: usually a 10% move lower from new highs. It’s more severe in nature, but could possibly just be a healthy dip as some investors take profits and others adjust their risk/reward ratios. The question here is whether companies in general still in good shape, or is the stock market a leading indicator of weakness in the overall economy, and will corporate America be the next area to feel weakness in growth.
Despite a correction being jarring for investors, Coogan says for her and other market watchers “it’s still defined as a shorter-term pullback in a bull market, it’s just a little more significant than the pullback that’s less than 10%” Bear market: a 20% or great tumble in the market. This 20% downturn is “usually something that’s sustained for a couple months,” Coogan says, where from an investor psychology perspective “pessimism breeds pessimism, and you get that continued downward trend, and that can be hard because you don’t know actually when it could stop.” Thus trying to predict the absolute bottom can be very difficult for an investor trying to time the market, but the risk/reward payoff for those that do can be astounding (just look at the run up from 2009 March
Last edited by NickofDiamonds; 02-09-2016 at 02:18 PM..
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