seattle prattle wrote:... 96% of our net worth is exposed to the stock market portion.
Seattle,
With that kind of exposure, to what degree do you worry about the unlikely but surely possible scenario of a sudden gut-wrenching drop of 50% or more? Do you flinch and sell losers in jagged market dips?
Wigglesworth wrote:
Ghost of Igloi wrote:
12% of that total net worth home/auto loans
Loans are not counted as part of one’s net worth.
But it counts as a yuge part of Igy’s self-worth.
the idiot wrote:
seattle prattle wrote:... 96% of our net worth is exposed to the stock market portion.
Seattle,
With that kind of exposure, to what degree do you worry about the unlikely but surely possible scenario of a sudden gut-wrenching drop of 50% or more? Do you flinch and sell losers in jagged market dips?
That's generally the way it's been for many years so I've gotten used to it.
Actually, it was a little higher last year, but with the downturn i sold off a big chunk of the triple leveraged ETFs for two reasons: the obvious one being preservation of capital, but also becuase the high volatilty of last fall is esp. tough on leveraged ETFs that get re-balanced daily (as Racket referred to recently), and because the higher fees couldn't be justified in a market headed horizontally or even worse - down.
During the downturn, i sold off almost all the triple leveraged ETFs. And then i sold the losing stocks just to offset some of the big gains i had in the ETFs i just sold (tax loss harvesting). But I didn't touch any long term gainers and I didn't touch any of FANGMAN.
When the market turned after XMAS, I used the opportunity to re-balance, replacing the triple leveraged small cap with triple leveraged technology, in the belief that small caps outperform early on in a recovery cycle and we are well past that, and because technology had gotten so severely beaten down. I just ran a quick comparison and my intuition was right by a devastating percentage.
Lastly, I had had a bit of cash sitting on the sidelines from about 2015 - 2019, and I put that to work almost completely since the rebound.
That's the long answer, but the short answer is I trade based on degree of certainty. When the market starts looking dicey, i start slowly selling a little and when it looks good, i buy slowly over time. When i am unsure, i don't do anything and that's why i had more cash than normal from about 2015 - 2019.
That said, the strategy worked well enough that i plan to get out of the triple leveraged stuff when i re-visit my ATH balance, and i am within a few percent of that now. I have the feeling that things won't be nearly as interesting then...
Lemons wrote:
Wigglesworth wrote:
Loans are not counted as part of one’s net worth.
But it counts as a yuge part of Igy’s self-worth.
And your reason for living.....a sorry life.....
Wigglesworth wrote:
Ghost of Igloi wrote:
12% of that total net worth home/auto loans
Loans are not counted as part of one’s net worth.
Sure, you get the point, percentage of asset allocation, debt as percentage of assets....
Ghost of Igloi wrote:
Lemons wrote:
But it counts as a yuge part of Igy’s self-worth.
And your reason for living.....a sorry life.....
C’mon, Igy. You know it’s true. You’re very superficial. To you, image is everything. That’s one reason you like Trump so much. You’re very similar.
Sure, I was a coach and teacher in one of the poorest areas of the nation.
You on the other hand are just a turd. A big smelly one.
And obviously have a huge hard-on for Igy.
Ghost of Igloi wrote:
Sure, I was a coach and teacher in one of the poorest areas of the nation.
You on the other hand are just a turd. A big smelly one.
And obviously have a huge hard-on for Igy.
Funny. May I remind you that you followed me here? Anyway your “hard-on” comment just proves my point. You think you are King Shit, but you’re not.
Detector Dude....Igy hard-on guy....
You followed me here, stalker. And you always respond....
You are scary weird....I won’t be responding to any of your posts....you need a psychiatrist not Igy to piss on....
Pretty sure you just got pwned.
Ghost of Igloi wrote:
401k man wrote:Q for everyone: what % of your net worth do you have in US equities right now? ...
Home 46%
CDs/short term bonds/cash 36%
1.5% equities
1.6% managed futures
3% equity short position
11.9% autos/art/jewelry/personal
12% of that total net worth home/auto loans
Igy, what is the trading strategy of the managed futures position? Generally long or short? Or both (trending)?
Seattle,
Generally managed futures do well following a trend, but not in all cases. Managed futures was one of the best asset classes 2000-2002 and 2007-2009. In recent years one of the worst. So in it as a reversion to the mean trade.
Igy
Igy, that makes sense in several ways. Good luck on that and with all.
-SP
Should have gone long on Disney to ride the hype train all the way up. The ol' mouse is doing quite well
Ghost of Igloi wrote:
Sally Vix wrote:
Come on Igy - you have been predicting the demise of the market for the whole time here. Please admit that.
No, I have said that overvalued assets, be it stocks or bonds are poor investments. Market history and common sense would view that as a reasonable statement.
Looking at the last 10 years, throwing out market history makes common sense.
mellon wrote:
Ghost of Igloi wrote:
No, I have said that overvalued assets, be it stocks or bonds are poor investments. Market history and common sense would view that as a reasonable statement.
Looking at the last 10 years, throwing out market history makes common sense.
Yes and for ten years an economy that cannot handle anything other than continual doses of liquidity and free money.
all time high for SPX today
agip wrote:
all time high for SPX today
Apparently inflation doesn't exist anymore. Prices of inelastic goods are going up though