Shouldn't all the smart MBA types who run these funds have known these huge market losses were coming, and move those funds into securities that were less volatile?
If they didn't what are we paying these schmucks for?
Shouldn't all the smart MBA types who run these funds have known these huge market losses were coming, and move those funds into securities that were less volatile?
If they didn't what are we paying these schmucks for?
5/10
Well played , however I only gave an average score . The reading comprehensions and math abilities of most posters on LetsRun are atrocious . To accumalate 65K in an Index Fund initiated this year , one had to invest about 6K a month . OP claims 7K is one months income . ( I am assuming this is take home ) So he's living on 1K a month ?!
Real case scenario :
Say you had money in a TAXABLE investment ; need it the end of next year ; and have a substantial loss . Sell now , place money in CD , MMMF , etc . Currently the risk is greater than reward . You also will have a tax write off for this year and possibly years to come if loss is high enough .
https://pbs.twimg.com/media/Du5Ep8JUwAIMY_W.jpgH/T @OddStats
la gente ésta muy loca wrote:
5/10
Well played , however I only gave an average score . The reading comprehensions and math abilities of most posters on LetsRun are atrocious . To accumalate 65K in an Index Fund initiated this year , one had to invest about 6K a month . OP claims 7K is one months income . ( I am assuming this is take home ) So he's living on 1K a month ?!
Real case scenario :
Say you had money in a TAXABLE investment ; need it the end of next year ; and have a substantial loss . Sell now , place money in CD , MMMF , etc . Currently the risk is greater than reward . You also will have a tax write off for this year and possibly years to come if loss is high enough .
https://pbs.twimg.com/media/Du5Ep8JUwAIMY_W.jpgH/T @OddStats
This works, too.
Hopefully, he protects his money from here on out. He still has 58,000 so he is in good standings. He took a minor slap.
The good news: the markets always bounce back. There are new record highs in the future.
The bad news: money you need in the short term (3-5 years) should be in a cash account.
OP, index funds are for buy and hold, long term.
Buy Low, Sell High. Do not do the reverse.
I max out my SIMPLE IRA (12.5k per year) at work, and max out a Traditional (make too much for Roth) IRA (5.5k per year).
I am not aware of any other "tax sheltered" vehicles available to me.
I use vanguard for a taxable account.
On Dec 7th I bought 10k of VTSAX. Yesterday I bought 5k more. Today I bought 5k more.
So I've put 20k in VTSAX as these big drops occur in the last 2 weeks.
Every day, my balance gets lower, but I am investing for the long term. I am mid-30s and do not plan to touch this money until retirement, barring personal disaster. Every purchase I make during these drops means MORE money when I cash out, hopefully decades from now.
My plan going forward is to consistently invest the same amount in regular intervals (aka DCA)--let's say 1 or 2k per month.
If more big drops like this December 2018 happen, I will continue to drop in 5k each time. If we get a HUGE drop, I will push the 500k (currently have sitting in cash in bank accounts doing nothing) ALL IN.
The last time we had a HUGE drop was spring 2009. DOW went down to 6,000. I was a broke student with ZERO money to invest, and I told myself that when I became a working man, I would save and wait for the next big drop. People who invested at Dow 6,000 quadrupled their money in 10 years.
The general trend of the total US stock market is up, with regular volatility and occasional big dips every few years. If the general trend ceases to be UP, then my plan will have failed. Oh well, I hope I am correct.
At least he didn't by bitcon.
Definitely do not sell. For all the reasons already mentioned, there should be a rebound in the spring as economy really not that bad, and earnings coming out still benefit form corporate tax benefits.
Keep in mind for your house that you can take a loan, or a withdrawal from your IRA and 401k tax free to pay for a home. You can also move money from IRA to IRA once a year for 2 months, and once a lifetime for 1 year. This may give you a way to deal with your short term housing needs, while you wait out the market rebound (or even if there is a longer bear market.
In general this does look like a good time to buy - how bout COTY, Ford F, Permian Basin Trust PBT, and GE all around $7 at 52 week lows with nice yields. All realistically can triple in a rebound. We'll come back in a year to see how we did.)
Good luck! Merry Christmas!
First thing Monday morning sell everything. Put your 58k immediately into JNUG which is going to double in price from $8.00 a share to $16.00 a share with the price of gold moving over $1360 an ounce. In less than 6 months you will walk away with a $58k profit. Remember this comment and check the price of JNUG on June 22, 2019.
For now, it's way too late to sell in the short term. Sure it could get worst but by how much, nobody knows.
You pose a question that has significant consequences and the answer is not nearly as simple as your question frames it as.
While no one really knows, my gut is based on the magnitude of the selling action that has been happening, we have lower to go.
That said, i will just about guarantee you that once it bottoms, it's going to rebound by quite a bit. At a certain point, you realize, wow, i should have just held on.... So, with the ability to buy back at the right time (presuming you can discern it), a sale now could set you up for buying back in at a lower price.
The hard part is, once you sell, there's a tremendous temptation to buy back once a bottom is perceived. But that can be tricky, and you can get caught in some deceptive gyrations.
Add to that, many funds have limits on how often you can jump back in if you've sold within a certain time frame, depending on your plan.
My inclination would be to sell some if that's what you are considering. If you feel some hesitation don;t sell it all, just some.
From experience, when you do this, you end you end up feeling partially stupid in the long run, but hopefully not as clueless as you could have been.
Scorpion_runner wrote:
Index Funds are illiquid compared to an ETF, you can't sell them quickly.
Totally wrong again. All index funds are ETFs.
Another ignorant post. wrote:
Scorpion_runner wrote:
Index Funds are illiquid compared to an ETF, you can't sell them quickly.
Totally wrong again. All index funds are ETFs.
WRONG. You clearly no nothing about the market in any form or fashion. The fact that you would even state such a thing is pure ignorance.
So here is some education for you, whoever you are.
As stated ETFs are traded like stock on an exchange. Index Funds are not. They are invested in through a brokerage firm or financial institution, and require a certain amount of money to get started. Both TRACK a collection of companies of a particular sector depending on which one you invest in. ETF's are highly liquid. They can be freely traded during stock market hours. Index Funds require notice or request, and its value is not calculated until the end of the trading day.
Here is a link to thoroughly educated yourself, and instead of trolling you should really learn how things work
https://www.investopedia.com/articles/mutualfund/05/etfindexfund.aspDeBron Lames wrote:
Shouldn't all the smart MBA types who run these funds have known these huge market losses were coming, and move those funds into securities that were less volatile?
If they didn't what are we paying these schmucks for?
The manager of the fund focuses on emulating the set up of the index that it follows, so if the fund is following the S & P 500 then the fund is going to have the same companies in it. That's the logic, so if a particular index is doing crappy, then the account holder is going to have to request to switch to another fund or financial instrument. The institution is not going to do that for you. Plus it takes a day after the order request to get the total value of the fund, so the order does not happen immediately.
I learned that the hard way back in 2008, when I had a money marketing fund through citibank and the market was taking a dive. I had to wait until next day's market close to get the net value of my assets, so I had to wait another 24 hours just to get out of the fund.
Scorpion_runner wrote:
Index Funds are illiquid compared to an ETF, you can't sell them quickly.
Another ignorant post. wrote:
Totally wrong again. All index funds are ETFs.
Scorpion_runner wrote:
WRONG. You clearly no nothing about the market in any form or fashion. The fact that you would even state such a thing is pure ignorance.
Duh, except that I'm right, and you're wrong again. As usual.
All of the index funds are readily available as ETFs, and offered by all of the major stock trading firms.
Next time you should check before blabbing.
Scorpion_runner wrote:
I learned that the hard way back in 2008
In 10 years you'll be saying the same thing about 2018, and then again in 2028.
No.
From now on, where you put your funds depends on when you plan to use them. If you plan to use them for a purchase in the near future, two places would be a bank account, subject to the limit, or a money market account which is not protected by the feds. You won't earn enough interest to account for inflation and you won't gain if the market improves but your capital will remain.
If you sell now, you will have a loss. You may have a loss later, however, from now on:
Diversify! Balance! Diversify!
I'm the OP and I'm not trolling. My acct is -$9k now. I'm gonna twiddle my thumbs and wait for some sort of rebound in the next year or two. Will definitely delay buying a house, I hope the real estate market crashes too.
I'm down $19,000 this year, but about the same as I was 18 months ago.
Hopefully this is the bottom and it will go back up again soon.
But in any case, I'm definitely not selling any of it in the meantime.
Yeah, me too .... wrote:
I'm down $19,000 this year, but about the same as I was 18 months ago.
Hopefully this is the bottom and it will go back up again soon.
But in any case, I'm definitely not selling any of it in the meantime.
You're going to follow the S&P 1500 down 50%? Do you think the Rothschild's did that or do that silly strategy? Vanguard has raised a herd of obedient sheep.
Monday Dec. 24 JNUG closed at $8.88 + 0.70 (+8.56%) after hours 8.91
Gold 1272.50 + 14.40 (+1.14%)
DXY 96.53