Down goes the Dow

Flagpole wrote:

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...

Ummm...no it didn't.

you put the lime in the... wrote:

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

Who cares about one day? That fund is up 21.82% YTD (and it's actually bringing my YTD total of 26.4% DOWN!

U R A Funny Little Man wrote:

Ummm...no it didn't.

Explain yourself. Do you mean because there are fees?

If you get a dividend that is reinvested, then that fund is now worth what it was PLUS the added dividend. Are you just playing a game of percentages BEFORE the addition and AFTER?

Are you saying I'm lying about the percentage of the dividend compared to what the fund WAS worth before the dividend.

You need to explain yourself, brother.

U R A Funny Little Man wrote:

drip drip drip wrote:

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

That's absolutely hilarious. Do you really not understand how fund dividends work?

Unless you explain yourself, methinks YOU don't know how dividends work.

K5 wrote:

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.

I agree with Flagpole.

Sally Vixxxens wrote:

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

K5 wrote:

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

Where'd you hear about that rule? I was referring to the benchmark you set with agip. Wasn't it for the end if November?

Brightest guy on the planet wrote:

I agree with Flagpole.

Then I have no reason to disbelieve that you ARE the Brightest guy on the planet.

The S&P closes above 1,800 for the first time. What a week!

Brightest guy on the planet wrote:

K5 wrote:

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.

I agree with Flagpole.

Many people on letsrun do.

Damn scary

Jambon wrote:

Brightest guy on the planet wrote:

I agree with Flagpole.

Many people on letsrun do.

Damn scary

It really IS scary. Can you imagine - these people are actually allowed to vote!

I think I know your answers (invest anytime you can for Flag and invest during corrections for Klondike), but I'd still like to hear what Flagpole and Klondike would say to allocating a portion of one's home equity to the market. If you have $200,000 of equity in a $800,000 house, what do you say about using $100,000 of it in the market long-term? Let's assume 5% interest and no other needs for the money (including as emergency funds).

K5 wrote:

It really IS scary. Can you imagine - these people are actually allowed to vote!

They seem quite reasonable to me.

Ben Dover wrote:

I think I know your answers (invest anytime you can for Flag and invest during corrections for Klondike), but I'd still like to hear what Flagpole and Klondike would say to allocating a portion of one's home equity to the market. If you have $200,000 of equity in a $800,000 house, what do you say about using $100,000 of it in the market long-term? Let's assume 5% interest and no other needs for the money (including as emergency funds).

I will argue that this is a sign of the apocalypse (the coming top of the present bubble).

If you go back a few years, using home equity loans and putting the money in the stock market is something that some did around 2006, and it was an indication of excess speculation that led to major tops in both housing and stocks. You know what happened 1-2 years later. Some people are either doing it or thinking about doing it again, at least according to some stories on the web.

NOT a good sign.

Yannix wrote:

A lie. Plain and simple.

K5 wrote:

It really IS scary. Can you imagine - these people are actually allowed to vote!

They seem quite reasonable to me.

1) I am not K5

2) Please don't vote.

Oh, I'll be voting alright.

Yannix wrote:

K5 wrote:

It really IS scary. Can you imagine - these people are actually allowed to vote!

They seem quite reasonable to me.

I am sure they do. But it wasn't me who made the very valid point about these people being allowed to vote. You imagine insight where you have none

Flagpole- a dividend from a mutual fund does not increase your net worth.

The Real K5 wrote:

You imagine insight where you have none

If perhaps I do and it is you who is lacking.

Well said, coach d, but in this case I don't believe I resemble a canary in the Nasdaq coal mine. Life's circumstances allow me to consider this option and if the market fell 50% I could wait it out without any trouble (mortgage fixed, job secure, income high). But as you allude to, there were some who borrowed against their home equity to do silly things like play the market. I suppose another option might be to use my account margin and know there's ample equity to cover calls should the market tank (that just feels scarier). If it's not obvious, I'm looking to use untapped wealth (either equity or cheap borrow rates) to leverage growth of personal wealth.