When the market recovers, will you change allocations? (weather, long-term, relative)
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
Congress is sorta in chaos at the moment and the procedure vote has been moved to six. If this bill isn't ready to be voted on tomorrow, markets could be realllllllllllllllllllllllllllllllllllllllllly ugly.
Rand Paul testing positive has Republicans in fear as he was at their luncheon and in the gym today. They have been working with him over the past few days. Yes I know WTF their gym was open and they were having a joint luncheon. Do they self quarantine and how can they vote?
...and the futures crashed and burned right at the opening tonight blowing the breakers and stopping trading, after the Dems walked out of the talks. Tomorrow is going to be brutal, IF they don't get things settled, NOW!
I put a call into my broker over the weekend and I’m nervous I won’t hear from him right away on Monday there’s also a time difference...in the meantime I’m afraid I’ll get hit hard again tomorrow, I’ve already lost A lot of money and I’m feeling kind of helpless right now but that shouldn’t be the case, I pay them to take care of me. Any suggestions?
I put a call into my broker over the weekend and I’m nervous I won’t hear from him right away on Monday there’s also a time difference...in the meantime I’m afraid I’ll get hit hard again tomorrow, I’ve already lost A lot of money and I’m feeling kind of helpless right now but that shouldn’t be the case, I pay them to take care of me. Any suggestions?
Nothing you or anybody can do, but pray that the market ends on an UP day tomorrow. That's because if you sell, you get the price at about 4pm just before the close. Even IF your broker enters an order for you earlier in the day.
Having lost most of my money in stocks before I have always hated having it in stocks. But once I had that MS account, I couldn't take it out without huge tax losses. So it goes up and my MS guy says hey, look you are great, build that house you want it'll be good. And I'm, its all going to go away again. I don't get excited when it goes up, I knew it would disappear.
I suppose I should have taken the tax hit but it is hard to be a single not wealthy at all retiree and have to write a check for 4 thousand or whatever, and thats without converting my stocks to cash.
Thankfully my TSP has been in G fund forever. Its staying about the same. My fear is that the govt is going to borrow from TSP.
I am 6-8 years out from retirement and when the market does recover, I am going way more conservative with allocations.
Nothing ever changes for me. I was conservative from the start (retirement based on insurance - ie, annuities from the largest and oldest insurance companies - rather than investments). My approach does not maximize money growth, but it is also predictable and totally immune to market problems. One of the insurance companies with which I have annuities just sent me a financial summary a few days ago. While their total assets were $1 trillion before the crash, their capital reserve was $27 billion (with ongoing benefit payment obligations of $11.5 billion - that includes the $2,500 per month that they are paying me right now :-). I'd say my retirement financial resources - while not overly ambitious - are pretty well backed up :-).
I do have a small amount in the market ($250k before the crash... now temporarily $180k :-), but that is strictly out of curiosity, not to support myself. These funds were in SEP-IRA... I converted $90k of them to Roth on a down-market day in Oct 2019, and just finished Roth conversion of the rest of them yesterday... yaaay!!! This market crash saved me $15k in taxes on Roth conversion, and enabled me to finish converting this year (rather than next year). I don't expect to touch this Roth for more than 20 years.
I don't need to wait for the market to recover before I change my allocations.
I have my portfolio split as such:
20% <employer name> 2055 Target Fund
20% <employer name> 2060 Target Fund
20% US Large Cap Fund
20% US Large Cap Index Fund
20% US Small Cap Fund
Each one of these has taken the same 32% dive YTD. The more conservative investments in the two target funds (some 30% in bonds) didn't insulate that investment from the recent drop. At all.
Doing a reallocation now won't really net me anything right now, but changing my investment elections to buy into what are better performing assets in the 1y/5y/10y just seems like a good idea, no matter what time you're doing it.
I am sorta suprised at my reaction. Loss a hell of a lot of money but if I am at 2018 levels I can only be so upset. The last ten plus years in aggregate have shown great returns so some major adjustment was expected. Out size down days and up days like this are sorta the norm. So fortunately we are still good and lets hope things settle down so we can stay that way.
Truthfully more focused on staying healthy and stocking up on goods that are in demand.
maybe now more will understand why borrowing to invest by taking mortgages out when they have a choice not to , may not be a great idea .
they may not pay if someone is not very high equity levels ... all gains were gone going back to 2016 . plus thousands in interest was paid over those years .
plus now the dilemma is the interest does not stop ... the choice is keep paying thousands more in interest on money either not invested or at a loss or lock in those losses with no chance of making it back by paying off the mortgage .
there is a reason that smart investors who use borrowed money want a risk premium over just investing money that isn't borrowed . while 100% equities can provide a long term risk premium for leveraging a balanced portfolio can not . yes , it may provide a positive return but not one worth spending tens of thousands on interest on , especially in bad times .
as i always say , you never know what your balance is until the cycle completes ... we had 4 years of gains evaporate in under 4 weeks .
So today we are waiting for this historically large infusion of financial support to the American economy by the government after last week's Fed loosening of the money supply, not a lot left in the arsenal after this other than renewing individual payments if needed, etc...
After the expected bump in the market today I'm guessing that a few weeks of news & the effects of spreading sickness & death will tank the markets again & I will start doing incremental buying & Roth conversions, assuming I can stay well. (No plans on leaving home other than for necessary food or fresh air walks though, guessing isolation through early summer at the earliest.)
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
