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Before the crash(es), our networth was about 10% in fixed assets, 10% in cash, 10% in bonds and 70% in equity. I was thinking of converting half of the cash to equity or real estate but glad that we have not taken any actions. Cash seems to be king at the moment
I am quoting a Washington Post article today
Quote:
Nearly every asset class - stocks, bonds, gold, oil - came under siege as investors fled to the safety of cash. The weeks-long panic has hollowed out a big chunk of the stock gains from the bull market and erased virtually all of the equity advances under the Trump presidency.
We were about 90% in equity up to about 2 years before I retired at the end of 2015. Our investment strategy in retirement has not changed except the fact we sold our house in 2018 but opted to have a mortgage on the new home and kept the cash we got for the previous home thus bumping our cash holding to 10%. Our new home have appreciated almost 30% in 2 years which keeps our fixed asset at 10%.
I have no plan to change our asset allocation either before or after these big crashes. We may invest a small portion of our cash asset in real estate when there is a buying opportunity.
The only action I had taken was to convert half the shares of one IRA account to Roth today. I may convert the rest of that account to Roth if the market declines further in the next few crucial months.
Presently I'm so shell-shocked at these ghastly events, that I indulge in pornographic fascination of a Hieronymus Bosch painting of tormented souls dragging each other into hell... a world bleeding, burning, wretched in ineffable misery. I've not slept properly for a month, and dread to get a blood-pressure reading. Our local gym, which I've taken to frequenting with religious fervor, has as of today closed down... so there goes the relief of weights and treadmills.
Each day summons dread and misery anew, another leg down, another increment in free-fall, a ceaseless cavalcade of loss, of loss and loss and further erasing of what's so dear and precious and gingerly accumulated.
"When the market recovers", a different and more vigorous quiver of emotions will present itself, and what's to be decided then, can not be reckoned in the present shock. I close my eyes, and wish for the world, as Bishop Berkeley taught us, to cease and vanish. But it won't. It perseveres, wounded, fetid, gangrenous, staggering, but going nonetheless. I would that it would stumble and collapse! But no such luck.
Huzzah! Huzzah!.. and 'BRAVO' while I'm at it.
Thou hast amusêd me, kind sir, with eloquence scarce seen uponst these boards.
..plus I really liked the "wounded, fetid, gangrenous" stuff!
It may not recover. It may never recover. No guarantees folks. Bankrupcies and unemployment every where coming to a neighborhood near you. I'd plan on Great Depression 2.
It may not recover. It may never recover. No guarantees folks. Bankrupcies and unemployment every where coming to a neighborhood near you. I'd plan on Great Depression 2.
there is always the danger of another lost decade or two for investments ... this damage may be so severe ....
the only ray of hope if it is , is like in the great depression the cpi fell 18% so you were actually whole again in about 5 years in dollar terms in 1929
I agree, we are headed for a recession for sure, or worst case, a depression. I’m older so I’ve lived thru a few and it isn’t pretty. But during those, nobody was standing in line for toilet paper, etc. (although I do remember gas rationing and lines in the 70’s) and nobody had to shelter in place. This is a whole other animal. Giving everybody $1k is a temporary feel good fix IMO. I finally had the courage to look at my account and I lost more than I could stomach. I don’t have the years to make it up. I’m seriously considering just going to cash on Monday and let it rest for awhile.
Suddenly people are realizing that those words STOCKS CONTAIN RISK in the prospectus really mean something
Quote:
Originally Posted by NewbieHere
It finally registered to some.
Only just now? Weren't most of the people who are in the market now also in the market 13 years ago?...sure, not all - but I know I took a hit then!
2001 I had just been in the market a few years after finally getting out of school and starting a "real" job with a 401k but I still took notice...and kept going with 100% stock funds.
Only just now? Weren't most of the people who are in the market now also in the market 13 years ago?...sure, not all - but I know I took a hit then!
2001 I had just been in the market a few years after finally getting out of school and starting a "real" job with a 401k but I still took notice...and kept going with 100% stock funds.
many had no where near the amounts invested in 2008 as today as well as being 12 years closer to death lol
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