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Old 06-03-2019, 10:24 AM
 
6,633 posts, read 4,310,343 times
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Quote:
Originally Posted by mathjak107 View Post
nonsense..short term fluctuations mean nothing to a long term investor ... i have been a long term investor since 1987 through wars , crashes , the great recession , the dot com crash and the lost decade .... returns have still averaged over 10% cagr. you would be hard pressed to find any typical accumulation or retirement time frames which span decades where doing nothing did not return within 2% of each other every time frame regardless of events .
With a 50-60% drop in equities, even a 50-50 portfolio is going to take a significant hit, which could take years to recover. We are in unchartered waters. The U.S. has not been in a similar situation in my lifetime. Buying opportunity? Sure, if you have a long-term time horizon.
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Old 06-03-2019, 10:31 AM
 
Location: SoCal
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I bought more this morning. Set lower prices to buy more.
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Old 06-03-2019, 10:36 AM
 
2,009 posts, read 1,214,393 times
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Originally Posted by Lizap View Post
With a 50-60% drop in equities, even a 50-50 portfolio is going to take a significant hit, which could take years to recover. We are in unchartered waters. The U.S. has not been in a similar situation in my lifetime. Buying opportunity? Sure, if you have a long-term time horizon.

How many instances in the last 100 years has there been a 50-60% decline in equities?
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Old 06-03-2019, 10:45 AM
 
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Guys it's just 7.25% drop so far on SPY.
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Old 06-03-2019, 10:49 AM
 
6,633 posts, read 4,310,343 times
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Originally Posted by FREE866 View Post
How many instances in the last 100 years has there been a 50-60% decline in equities?
How many times in the last 100 years have we been in a situation like we're in now (re. imposing tariffs on multiple countries, including China, Mexico, and possibly India)? Usually rate cuts help, but we're in unchartered waters, who knows.. If you're a younger person, just tune it out.. if not, I'd be very careful here. The risks outweigh the potential returns for a person without a long-term time horizon. Sometimes older people think they have long-term time horizon, when in reality, they may very well not..
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Old 06-03-2019, 11:04 AM
 
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Originally Posted by Lizap View Post
How many times in the last 100 years have we been in a situation like we're in now (re. imposing tariffs on multiple countries, including China, Mexico, and possibly India)? Usually rate cuts help, but we're in unchartered waters, who knows.. If you're a younger person, just tune it out.. if not, I'd be very careful here. The risks outweigh the potential returns for a person without a long-term time horizon. Sometimes older people think they have long-term time horizon, when in reality, they may very well not..

You didn't answer my question...I despise Trump, and yes tariffs are not good, but don't forget we have an ~85 trillion dollar global economy. Tariffs of a few hundred billion , while bad, are not going to send us into some deep recession. The media, however, will pour gasoline on this news as it gets great attention and evokes tremendous fear. It's just more glorified noise and like you alluded to unfortunately people with long term time horizons will commit financial suicide by not having heavy exposure to stocks.
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Old 06-03-2019, 11:08 AM
 
106,725 posts, read 108,937,910 times
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Quote:
Originally Posted by Lizap View Post
How many times in the last 100 years have we been in a situation like we're in now (re. imposing tariffs on multiple countries, including China, Mexico, and possibly India)? Usually rate cuts help, but we're in unchartered waters, who knows.. If you're a younger person, just tune it out.. if not, I'd be very careful here. The risks outweigh the potential returns for a person without a long-term time horizon. Sometimes older people think they have long-term time horizon, when in reality, they may very well not..
all i know is in my lifetime as an investor it has always been that there is some heavy weight or economic disaster waiting to happen ...quite frankly i see nothing out of the ordinary here ...same crap just different weights hanging over the market.

we tend to always have a portion of money that is long term money ..even at 65 there is money that will be needed to eat for 20-30 years so the allocations retiree's tend to use which are in the 40-60% range provide money for both short and long term needs.

Last edited by mathjak107; 06-03-2019 at 11:27 AM..
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Old 06-03-2019, 11:09 AM
 
Location: SoCal
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This is nothing, goodness, get a grip. I’m low on equity that’s why I bought more.
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Old 06-03-2019, 11:10 AM
 
2,009 posts, read 1,214,393 times
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Originally Posted by mathjak107 View Post
all i know is in my lifetime as an investor it has always been that there is some heavy weight or economic disaster waiting to happen ...quite frankly i see nothing out of the ordinary here ...same crap just different weights hanging over the market

Exactly. When you disconnect emotionally from it and take a step back it's just amazing how different narratives dominate and just drive people into extreme states of fear.
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Old 06-03-2019, 11:11 AM
 
6,633 posts, read 4,310,343 times
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Originally Posted by mathjak107 View Post
all i know is in my lifetime as an investor it has always been that there is some heavy weight or economic disaster waiting to happen ...quite frankly i see nothing out of the ordinary here ...same crap just different weights hanging over the market
MJ, I hope you're right (no one wants to see protracted carnage in stocks). I hope we can postpone it as long as possible.
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