Down goes the Dow

Wouldn't now be the time to get out and cash in while it's going up instead after it went down?

16,000

* wrote:

Wouldn't now be the time to get out and cash in while it's going up instead after it went down?

16,000

What's always with the "getting out" talk?

Let's say you're retired and you plan on taking 4% annually but the market goes up 35% in a certain calendar year. Well, you have to figure in BAD years too, but in this particular calendar year, if you had a big thing you wanted to do (big purchase, trip, etc.), it wouldn't be bad to take more than you had planned to take. So, you can take some extra cash when the market is going gangbusters, but to "get out" is silly.

For the dividends alone it's a great idea to stay in.

Sally Vixxxens wrote:

With less than 5 market days remaining in the month, it's not looking good for K5. Of course, it only takes minutes for the market to tank, so there's still a chance. But I would bet against it.

The Real K5 wrote:

Really?

We will see. I got out with the Dow at 15,000. I will almost certainly re-enter with the Dow well below 15,000. End of November 2013 may mean something in your mind. But it does not in the reality based world.

Weren't you the one who set the end of November as a benchmark? Are you now changing the rules midstream?

Well, from the opening post he admitted that he let the Dow get near 15,700 and then got out at 15,000.

Nothing to brag about that you got out at a relatively low point and realized your losses.

He just posted after it dropped a little after he sold so it looked like he gained something at the time.

My point is that it is at an all time high right now.

So IF you are playing the get out game then get out now.

Sell high.

All of the doomsdayers have been out.

And the optimists stay in.

So no one seems to actually sell high.

Better Questions wrote:

[quote]Strews wrote:

[quote]Better Questions wrote:

I'm winning!

Strews wrote:

No, I'm winning!

Better Questions wrote:

No, I'm winning!

Strews wrote:

No, I'm winning!

Better Questions wrote:

No, I'm winning!

Strews wrote:

No, I'm winning!

Better Questions wrote:

No, I'm winning!

calm down children

* wrote:

So no one seems to actually sell high.

The whole "buy low, sell high" thing is crap, and it's what gets some people in trouble.

You should buy when you have income to buy and don't need the money, and sell when you no longer have a job and need the money.

USUALLY that results in buying low and selling "higher", but there for sure could have been some purchases in there, especially toward the end of your career where you bought higher than you ended up selling, but overall if you invested your whole career, you sold higher.

The main thing though is that you sell when you need the income, and you buy when you don't so that you'll have it when you do.

I'm a loser. Here's my picture...

http://goo.gl/WgISw

Nathaniel wrote:

calm down children

Up yours

Flagpole wrote:

And, when out of the market, you don't get dividends. This is SUCH a huge thing. I just got one YESTERDAY that was RIDICULOUS! I'll even tell you what it is:

Fidelity Artisan Mid Cap

In one fell swoop, they paid out 8.03% of my total value in that fund. I'm not going to give you the total amount, but trust me, it is RIDICULOUS!

Man, people who don't invest or jump in and out of the market just have no clue.

So, when they paid out 8.03% in dividends somehow your wealth in that fund magically increased?

U R A Funny Little Man wrote:

So, when they paid out 8.03% in dividends somehow your wealth in that fund magically increased?

It did if he reinvested those dividends in the fund, which Flagpole has mentioned he usually does.

U R A Funny Little Man wrote:

So, when they paid out 8.03% in dividends somehow your wealth in that fund magically increased?

What are you getting at? All of my dividends are automatically re-invested into the fund that produced them, so yes, my "wealth" in that fund increased...by 8.03% just in one fell swoop.

I wish I could bring myself to tell you the dollar amount, but Flagpole doesn't divulge such things...it would really open the eyes of people who don't think dividends are a big deal. I've long heard of some people with decent retirement portfolios living on just their dividends while they watch their portfolios swell in value, and initially I didn't think that would be possible for me, but I'm beginning to see how that could really happen. Crazy.

I think the point he was getting at is where exactly did that 8% dividend come from? Did those monies just appear out of thin air, or....

Flagpole wrote:

The whole "buy low, sell high" thing is crap, and it's what gets some people in trouble.

You should buy when you have income to buy and don't need the money, and sell when you no longer have a job and need the money.

So, buy low and sell high is not the best strategy.

Buy when you don't need income and sell when you do need income is the correct approach to maximizing wealth.

Go it.

Flagpole, I've asked for your advice many times on this forum, and you've always helped out. I tend to have the same thoughts about you on market timing, saving for retirement, the value of time, etc. But, did you just go third person!?! AWESOME!!! Keep up the good work, bro.

Bigfoot Investor wrote:

I think the point he was getting at is where exactly did that 8% dividend come from? Did those monies just appear out of thin air, or....

My God... The Onion couldn't write anything better than this recent exchange on the RIDICULOUS, HUGE dividend.

Flagpole:

And, when out of the market, you don't get dividends. This is SUCH a huge thing. I just got one YESTERDAY that was RIDICULOUS! I'll even tell you what it is:

Fidelity Artisan Mid Cap

In one fell swoop, they paid out 8.03% of my total value in that fund. I'm not going to give you the total amount, but trust me, it is RIDICULOUS!

Man, people who don't invest or jump in and out of the market just have no clue.

In other news, Artisan Mid Cap Fund is down 6.02% on the day.

Lol... yep Flagpole, those "other" people just have no clue. Good job teaching them.

Ouch, and the Artisan Mid Cap Fund (ARTMX) has a 1.33% expense ratio. (compared to Vanguard's 0.10% expense ratio).

Over the last 10 years the Vanguard Mid Cap ETF (VO) has outperformed ARTMX +118% to +101%.

Good stuff!

Flagpole wrote:

[quote]The Real K5 wrote:

Can't keep hanging on to that. You got out at 15,000 because you said it was going get below 13,000.

Fortunately you have other retirement money coming your way, because you are not cut out for investing in the stock market. For anyone who does NOT have a pension coming, if they were to follow what you do, that would be very bad indeed.

You want to bet that the Dow will never again be materially less than 15,000?

Oh wait. You are betting that. You are a buy and holder.

Of course you also would not risk $50k for a 1 in 4 chance to win $1 million and think that when the value of your holdings goes way down you haven't really lost any money so I realize I am not talking to the brightest guy on the planet.

We will see what happens. Time will tell.

Sally Vixxxens wrote:

Sally Vixxxens wrote:

With less than 5 market days remaining in the month, it's not looking good for K5. Of course, it only takes minutes for the market to tank, so there's still a chance. But I would bet against it.

The Real K5 wrote:

Really?

We will see. I got out with the Dow at 15,000. I will almost certainly re-enter with the Dow well below 15,000. End of November 2013 may mean something in your mind. But it does not in the reality based world.

Weren't you the one who set the end of November as a benchmark? Are you now changing the rules midstream?

What kind of rule is it that everything ends at the end of November?

performance runner wrote:

Flagpole, I've asked for your advice many times on this forum, and you've always helped out. I tend to have the same thoughts about you on market timing, saving for retirement, the value of time, etc. But, did you just go third person!?! AWESOME!!! Keep up the good work, bro.

I throw in...I mean Flagpole thrown in a third-person quip just for fun once in a while. Life is about fun my brother!