That may be well and true, but it’s the last bit about “social strivers” + printer go brrrr that kind of foretold the mess we’re in.
I love the “I’m not even trying to make it seem realistic” liars…of which one lives down the street. I’m at a neighborhood kid’s birthday party and he’s there. He immediately goes into investing. 1) He went all cash about 3 months ago. Just knew something was brewing. 2) I have a bad position in Netflix (currently DCA at $220). He made a ton of money off Netflix. Bought it at 30 and sold at 750. So you held that position for 10 years? Crickets. 3) Did the same with Tesla. Bought at 200 and sold at 1200. 4) Knew crypto was going to shit the bed and liquidated those positions in April. Just a timing genius.
Walmart with a big miss, premarket was way up before they announced. Didn’t move the market much but they took a hit as did Target.
Yes but markets are always forward looking and as butteratot mentioned guidance hasn’t been great. The second half of the year will be interesting, maybe the consumer levers up and we don’t slow that much maybe they reduce purchases because of food and gas and everyone already got the goods the wanted during the pandemic.
Does anyone do any foreign currency trading in here? I was looking at buying some dollar index. Would an ETF be the best way?
From what I understand it rules that the SEC enforcing it's rules and regulations is unconstitutional.
What's a good low expense general total stock market EFT to buy via TD Ameritrade that doesn't involve high commission fee My HSA account is going away and I have like $3k cash in there to throw into the market that I'll just leave there for 20 years
I’m now convincing myself that the bull run was fake and I shouldn’t even consider that I was up so much.
Or just be ok with them going up and down. Unless you're on the verge of retirement it's a totally pointless exercise.
This. Obviously it comes with some emotional collateral damage, but I do think it's useful to have some idea of how your account performs in different markets. Unless you're 100% confident that you're utilizing the optimal saving & investment strategy, you need to be looking at your performance and if it's meeting or failing to meet your personal investment goals.
Big difference between being aware and assessing and compulsively checking to the point of it bothering you during a market downturn well outside of retirement age.
So what if you were 63 years old last year and watched the run up. What steps would you have taken 2021-2022?
Personally, I wouldn’t have “changed” anything. I’d either already be invested in a more conservative asset allocation at 63 if I couldn’t handle a downturn or I’d have enough money saved that it wouldn’t really matter for my longterm plans.
If you’re 63 and not absurdly wealthy you should already have limited exposure to risk. I got my parents out of equities 5 years ago. Watching the growth hurt but watching the fall has been better. If you’re at or near retirement age and can’t afford to watch your retirement cut in half you shouldn’t be in there in the first place.
The secret really is to bucket stuff. You want to have what you need in the next couple of years in cash, then a few years in bonds, then a few years in blue chip dividend stocks and then the rest in growth stocks. You can't retire at 67 and put everything in cash/bonds because the money you need if you live to 80 will be shit. That bucket should still be in stocks. Just have cash to get from 67 to 70 in case the market sucks and you don't want to sell bonds or stocks.
To be honest they probably got smoked. The thing that is different this go around compared to past market crashes is that bonds have not been the safe haven they were in 08 or March 2020. Already there has been more net worth lost in this crash than in 2008 and thats mainly due to what has been happening in bonds. Take for instance the Vanguard 2030 fund, its down close to 28% compared to SPY thats around 18%, 28% is nasdaq levels a supposedly far riskier investment than a 2030 target fund thats within a decade of retirement.
I remember hearing how my wife’s grandparents had made an absurd amount of money in retirement through their financial advisor who they never questioned. I was like the fuck are they doing in any investments with a return like that at 85-90.
my parents almost exactly in the age of the hypothetical and had a conservative position largely dodging all this
To answer the actual question from the perspective of a 401k that has like 10 options and theres really nothing to do but some things I personally changed: I went to equal weight on my SP500 fund rather than market cap weight, and I had like a 1/3rd in a "mid cap value" fund which is about the only exposure to energy stocks I could find at like 8%, only thing its done is just lost less. Only other real options are put it in a stable cash fund.
Wow. This is what I was going to ask next. I’m in Vanguard 2045… and was wondering how it would do in a down market, considering that it changes over time to reduce risk as I near retirement. So 2030 down a lot… I guess you just ride it out if you’re in the 2030… assuming you’re a healthy 59-62 years old?
Its still going to lose money, but the usual mantra for 40+ years has been when equities are down bonds are a safe haven and that has not been the case this go around. Just comparing the pandemic crash to the one we are currently in today, the 2030 target fund low closed down 25% where SPY closed down 32% in 2020, the bond hedge in those accounts reduced the pain of that crash. Now this go around its quite the opposite, its actually making it significantly worse. But yea if you are not an investing person then you just ride out your 2030 fund and hope for the best.
I haven’t looked at the target date funds but I would imagine they are getting equally smoked since bonds are also down bad.