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Can't reveal the bank. He is a high level functionary at this bank for 30 years. He was a Acquire and Hold person.
When you get to see the Numbers at your work, any trading is reviewed and monitored.
I know how it works and he wasn't restricted for 30 years. He lost it all on his own accord and failure to diversify
with markets near all time highs anyone who lost a penny ,lost it because of their own poor behavior .
unless you speculated in individual stocks and took on individual company risk there are no diversified funds you would have lost money in over a typical accumulation period that spans decades . case closed as far as knowing those who lost everything or considerable amounts in equity's because of markets ..
a diversified portfolio only went up over the long term .
biggest culprits were likely fear , timing or mis-matching the money to the time frame and using long term investments to meet shorter term needs
anyone that gun shy is more likely to bail regardless of allocation if things turn south .
it may also end up trying to be a little bit pregnant . odds are they don't know they can't really spend much more without higher equity levels so they will and in the end they will out live their money any way or face cuts in pay they may be miserable with .
usually the more financially ignorant someone is the more they develop a fear of equity's and think more conservative works better in retirement .
history and math has taught us it is the exact opposite , and equity's make your draw rate safer .
i said timing , not trading . yes , you are effectively trying to guess at a lower entry point . that is timing . you are attempting to outsmart the market .
To point, Warren Buffet has an HBO documentary right now. He said his basic premise was to find cigar butt companies that Wall Street had already written off as dead, but had a few good pulls left on them. He credited his partner with evolving his thinking to one of value investing, and he invented his own scorecard to find value.
At this point being all cash is a smart move.. the DOW and major indexes will be trading at this point or lower some time in the next few years.. the risk reward favors being cautious.
More money has been given up or lost preparing for or anticipating the next downturn than has been lost because of any downturn --peter lynch
I would never bet the ranch on all cash . I would only go from a more aggressive portfolio to a more defensive one . But even that rarely paid off in my 35 years as an investor. You really better be a good marke timer to win that game.
If i went to cash everytime i thought we were due for a drop i likely could lose 1/2 today and still be ahead when it finally happens.
Last edited by mathjak107; 04-26-2017 at 04:17 AM..
Basics - my active fidelity accounts (3) including two IRA's - didn't sell a single thing during the crash. In fact, I didn't sell during any of the crashes.
My history on the computer only goes back to 2003 (fidelity) but the return per year exceeds 10.5%.
Those of you who are worried should just buy Buffets stock and a couple other stocks.
Personally, I prefer living the good life (retired, 3 houses in good locations and no worries about money) to having to consider whether we can get by on 3.1%. 6% will put me in fat city.
No doubt a crazy man iike Don the Con can give one pause. We can truly now say 'anything can happen' - but I'm still mostly all in. Of course, the real estate is an asset also but we don't make any income from it.
If world war breaks out - and Don would drop a nuke without a second thought (he is all about ratings), then all bets are off. But, hey, you guys elected him so we deserve what we get. I may have to shave things down to two houses and give less money to my kids each year.
Maybe I'll move to Canada or Mexico.
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