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if they are investing for legacy money and not dependent on pensionizing what they have and only drawing some off then they are in effect investing for someone else .
we are at the stage where we have choices .. we have enough money accumulated at this point that we can go either very very aggressive or very conservative and the draw will be the same . but the money left for heirs will be different .
50/50 and 100% equities have almost the same success rate over 30 years .
I think that would depend a lot on "which" 30 year period you picked. If you picked a 30 year period where the final year was a BIG loss for equities (say about 50%), then a 100% equities portfolio would lose half of what it took you 29 years to accumulate. OTOH, a 50/50 portfolio would lose perhaps 20% in the final year. Big difference in the final amount.
Location: We_tside PNW (Columbia Gorge) / CO / SA TX / Thailand
34,722 posts, read 58,067,115 times
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Quote:
Originally Posted by jiminnm
I read these threads and continue to be amazed how people react to a blip in the market.
A true buying opportunity was October 20 1987, the day after the Dow dropped 22% in one day.
Black Monday (19 Oct 87) remember it well. The BIG managers were boasting how they had pulled all their MF accounts (got (LOW) end of day pricing) https://en.wikipedia.org/wiki/Black_Monday_(1987)
The stock market advanced significantly, with the Dow peaking in August 1987 at 2,722 points, or 44% over the previous year's closing of 1,895 points.
The crash was preceded by significant drops in the prior week.
...On (preceding) Wednesday, the DJIA dropped 95.46 points (3.8%) (a then record) to 2,412.70, and it fell another 58 points (2.4%) the next day, down over 12% from the August 25 all-time high. On Friday, October 16, the DJIA fell 108.35 points (4.6%) to close at 2,246.74 on record volume. That was again a one-day record at the time.[13] Though the markets were closed for the weekend, significant selling pressure still existed. The computer models of portfolio insurers continued to dictate very large sales.[14]
then came Monday 'programmed trading and arbitrage'... That 'broke' the market tools and procedures (trading reforms followed!).
a few years Prior to 'Irrational exuberance' comment... )
...On the morning of October 20, Fed Chairman Alan Greenspan made a brief statement: "The Federal Reserve, consistent with its responsibilities as the Nation's central bank, affirmed today its readiness to serve as a source of liquidity to support the economic and financial system".[55]
The Fed's key action was to induce the banks (by suasion and by the supply of liquidity) to make loans, on customary terms, despite chaotic conditions and the possibility of severe adverse selection of borrowers. In expectation, making these loans must have been a money-losing strategy from the point of view of the banks (and the Fed); otherwise, Fed persuasion would not have been needed.[63]
The Fed's two-part strategy was thoroughly successful, since lending to securities firms by large banks in Chicago and especially in New York increased substantially, often nearly doubling.[64]
That day coincided with an evening company 'dinner cruise' celebration for the release of a product that led to 30 yrs of amazing profits. But our stomachs had a bit of a knot to digest the steaks... and the 'party' atmosphere was greatly subdued. Might be the first time the dinner cruise ended that early so everyone could go home and cry, (Especially the SMART managers who had 'locked in' their losses).
Ummmm, been investing well over 30 years and yesterday was like lot of yesterdays over the years a down day. Truthfully I have been putting new money in the last few days just because the market was cooling a bit. Money goes in multiple days a week anyway but just upped the anti a little. Had to buy some VIG around 10am today which is often a good time for some ETF's.
Made a hell of a lot of money last year expect give some of it back as history shows it will happen again and always will again. I was still up for the year at the close business yesterday so it was still a decent January.
Yeah I watch and have CNBC on in the background usually during the day when home.
Per the previous post lost a bundle and learned a lot on Black Monday.
Market is up... TODAY. Still not recovered from the steep drop yesterday ( and Friday for that matter ). I think you know that.
Still it’s up from one month ago so not really much to worry about I don’t think.
Truthfully I react differently to the market from portfolio to portfolio. My after tax portfolio's are added to multiple times a week At least three. Drops are appreciated in those portfolios as it gives me chance to add additional money at a lower price which I did this drop.
Our tax sheltered accounts are not eligible for new money so they just ride and ride other than RMD's.
Market drops don't have the same value there.
This thread is a great example of a serious problem in our society right now. Interest rates are at lows and a person is really challenged to save and invest with CD's and other fixed instruments.
That is causing more people to join the equity market and that includes folks who maybe shouldn't. They feel they have little choice and aren't ready for the normal fluctuations.
It is a lot like the High Yield market which folks are invested in who don't realize the risks moving forward and are unaware of how much they make or lose as yields rise or fall.
They may understand what happens when the Dow rises and falls but not what a rise/fall in the ten/thirty year can translate to.
Ah, come on. My OP was supposed to be taken in a more light hearted manner as to how retiredfolks, who may not be market gurus or relatively wealthy, view incidences like this virus affecting the market.
React, respond or ignore?
Obviously, those seriously concerned aren't on looking for information in this forum
But , does it reflect any kind of influence?
Ah, come on. My OP was supposed to be taken in a more light hearted manner as to how retiredfolks, who may not be market gurus or relatively wealthy, view incidences like this virus affecting the market.
React, respond or ignore?
Obviously, those seriously concerned aren't on looking for information in this forum
But , does it reflect any kind of influence?
Yes and you got reactions from a wide range of backgrounds. While those informed aren’t looking for answers here they are present reacting per the norm in this forum.
I thought you created a good thread for the forum to participate in.
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