Down goes the Dow

Hmm, I guess if you picked the lowest point in March, 5 year annualized return looks low. So, did you beat that by holding onto CDs? Or did you have other holdings?

Also, what would you do if stocks rise to higher levels that even when stocks do go low, it’s low won’t be as low as last March?

Just curious in knowing what your strategy is.

Also, I’m assuming that you have built up good amount of portfolio and if you have missed on the gains from the past 5 years and even longer, how were you able to build such a large portfolio?

Bummbull wrote:

Hmm, I guess if you picked the lowest point in March, 5 year annualized return looks low. So, did you beat that by holding onto CDs? Or did you have other holdings?

Also, what would you do if stocks rise to higher levels that even when stocks do go low, it’s low won’t be as low as last March?

Just curious in knowing what your strategy is.

Also, I’m assuming that you have built up good amount of portfolio and if you have missed on the gains from the past 5 years and even longer, how were you able to build such a large portfolio?

Bummbull,

I noted March 23rd low at the start of this discussion. I am not trying to match an index, you, or other posters. I already outlined investments that outperformed stocks during the time period in question, and they were bonds and precious metals. I owned both during that period, but that is not the point. I respectfully suggest you learn more about markets, determine your own risk tolerance, rather than copying me or other investors.

In response to the portfolio question, it is fueled by savings. I maxed out my personal contributions whenever I could. Wealth is driven by savings, not investment performance. I take on risk when it is in my favor.

Igy

Please Igy. Enough.

Stocks have outperformed bonds, gold, CDs and any other asset over the last 100 years bar none. BAR NONE. Historically, stocks have annualized returns of about 11 or 12-per cent annually with dividends reinvested. Bonds about 4%. CDs? Their real rate return over the last 30 years is laughable. About 0.87%. Let me repeat about 0.87%.

Wealth is NOT DRIVEN by savings - especially when you are plowing your hard-earned savings into junk like CDs. No wealth is driven by asset performance. A $1 million invested 30 years ago invested in CDs is worth about $1.2 million. A $1 million invested in a diversified Vanguard fund 30 years ago is worth $32 million. Which would you rather have - Igy's $1.2 million or $32 million?

Igy - I am not sure if you are really good troll but if you are not, you are really giving very bad investment advice to people here.

Sally Vix wrote:

Igy - I am not sure if you are really good troll but if you are not, you are really giving very bad investment advice to people here.

You’re right. You did note March 23rd at start of this discussion.

I wasn’t planning on copying you or another investor from here. Well, maybe except for Flagpole, but my way has produced nice returns. I was just curious with your investment portfolio since from all of your writing, you’re very smart, but maybe your smartness has gotten in your way in investing and have had suboptimal performance for decades.

You don't know yet that Igy chooses the absolute date to portray stocks as bad investments. He always uses 2000 or 2001 as they were the absolute worst periods for stocks. He cherry picks specific dates to make equities look as bad as they can look.

Bummbell,

I was giving you honest, and good advice. Evidently that wasn’t enough.

Igy

Sally Vix wrote:

Igy - I am not sure if you are really good troll but if you are not, you are really giving very bad investment advice to people here.

You give investment advice. I comment on markets, of which you know very little, Bob.

Ghost of Igloi wrote:

Sally Vix wrote:

Igy - I am not sure if you are really good troll but if you are not, you are really giving very bad investment advice to people here.

You give investment advice. I comment on markets, of which you know very little, Bob.

When you are telling people here to divest of Amazon, Tesla or Apple, that is investment advice. And very bad investment advice. Many are millionaires here from having invested in some of these tech stocks. These people listen to you and follow your advice and invest in crap like Hussman fund and CDs.

Sally Vix wrote:

Ghost of Igloi wrote:

You give investment advice. I comment on markets, of which you know very little, Bob.

When you are telling people here to divest of Amazon, Tesla or Apple, that is investment advice. And very bad investment advice. Many are millionaires here from having invested in some of these tech stocks. These people listen to you and follow your advice and invest in crap like Hussman fund and CDs.

OK, Bob.

Ghost of Igloi wrote:

Sally Vix wrote:

When you are telling people here to divest of Amazon, Tesla or Apple, that is investment advice. And very bad investment advice. Many are millionaires here from having invested in some of these tech stocks. These people listen to you and follow your advice and invest in crap like Hussman fund and CDs.

OK, Bob.

I apologize for being pretty hard on you. You bring a lot of positives here. We have different investing ideas.

Sally Vix wrote:

Ghost of Igloi wrote:

You give investment advice. I comment on markets, of which you know very little, Bob.

When you are telling people here to divest of Amazon, Tesla or Apple, that is investment advice. And very bad investment advice. Many are millionaires here from having invested in some of these tech stocks. These people listen to you and follow your advice and invest in crap like Hussman fund and CDs.

Here is a thought that never crossed Sally’s mind. Who would have known?

Certainly not Bob.

Ghost of Igloi wrote:

Since you commented, John Hussman’s response:

https://twitter.com/hussmanjp/status/1299364979263582210

la gente esta muy loca wrote:

Ghost of Igloi wrote:

Since you commented, John Hussman’s response:

https://twitter.com/hussmanjp/status/1299364979263582210

WTF LOL

Seems I accidentally hit post reply. That's what happens after driving 1300 miles in 2 days and than consuming a few glasses of Jumilla. Maybe I'll follow up tomorrow, but a few observations. Most companies use a 20% or 25% hurdle rate.

I have no idea where Sally Vix pulled the $1 million to $32 million over the last 30 years.

Good night.

la gente esta muy loca wrote:

la gente esta muy loca wrote:

WTF LOL

Seems I accidentally hit post reply. That's what happens after driving 1300 miles in 2 days and than consuming a few glasses of Jumilla. Maybe I'll follow up tomorrow, but a few observations. Most companies use a 20% or 25% hurdle rate.

I have no idea where Sally Vix pulled the $1 million to $32 million over the last 30 years.

Good night.

Yeah, i didn't read his post until just now but good point, In that period, the S&P 500 increased almost 11 times it's initial value, so any diversified fund that increased three (3) times as much over the same period was one hell of a kick butt fund. Can;t imagine that such a fund exists.

Sally is in the Elon Musk and Jeff Bezos Fund.

Ghost of Igloi wrote:

You give investment advice. I comment on markets, of which you know very little, Bob.

Oh, the irony!