I had the same thought this morning about cashing out of the stock market. I did it in 2019 when Trump was playing games with tariffs and other things and the market had wild bounces every day. I waited for it to stabilize before reinvesting.
I had the same thought this morning about cashing out of the stock market. I did it in 2019 when Trump was playing games with tariffs and other things and the market had wild bounces every day. I waited for it to stabilize before reinvesting.
I never cashed out. That is the stock market, ups and downs, which can be volatile at times such as these. It does tug at your heart, I admit, but dang it, we have to hang in there! If everybody pills their money out, then the market will crash.
I commend your vigilance and faith in the markets. But I think anyone who has equity ownership should have the risk tolerance (strength of stomach) to watch their portfolio drop by 40% (2000 and 2008). And they should have the risk capacity to watch that happen and not NEED to sell before the recovery - which have always happened. Oh, except for the stagflation of the 70's.
It is always about personal time frames. Looking at stock market long term gains is silly if you don't have a long time left on Earth. But if you are young and are hopeful for our world, hang in there.
Bill For predicting the stock marketтАЩs short-term gyrations I prefer to have Greek priests interpret goat entrails. For an investor, as you note, the key element is tolerance for risk. I consider the biggest danger when the market drops sharply is to sell, unless this is a stock in which you no longer have confidence in its core business.
I have no clue as to where the stock market will be in five years and which stocks will be winners. (And losers).
I adopted a buy-and-hold strategy over 60 years ago. In early 1960s I decided not to buy/holding manufacturing company stock. Pharma, insurance, several consumer stocks were my core, modest investments. I also saw no advantage in balancing my portfolio between stocks and bonds. Especially in times of high inflation, the redemption value of a bond plummets in real dollars.
One needs guts, stupidity, and luck to stand firm with my investment policy. In real dollars, between Dec. 1969 and February, 1982 basic stock indicators plunged over 50%. On October 28, 1987, in a single day the market plunged 28&. At the start of the pandemic, some stocks fell by over 50%.
My buy-and-hold-strategy, plus luck, has worked out well for me, with some very modest investments 50-60 years ago doing spectacularly. My belt-and-suspenders in recent years has been to include some stocks that pay 3-7 percent dividends. I do not like paying capital gains and have done this rarely. I donтАЩt understand tech stocks, consider Bitcoin Bitcon, and donтАЩt invest in oil or tobacco. I look at the daily stock market much like I glance at sports scores. Of course, being 88 next month, my long-term horizon is shorter than for my kids and grand kids, for whom I intend to provide moderately, after my wifeтАЩs and my charitable legacies. CALCULATE YOUR PERSONAL RISK QUOTIENT, DONтАЩT PANIC WITH A SHARP MARKET DROP [since August, 1982 the Dow has gone from 762 to unimaginable heights), AND PRAY FOR LUCK TO COMPENSATE FOR YOUR STUPIDITY.
I had the same thought this morning about cashing out of the stock market. I did it in 2019 when Trump was playing games with tariffs and other things and the market had wild bounces every day. I waited for it to stabilize before reinvesting.
We did too, and are just dipping our toes in now.
I never cashed out. That is the stock market, ups and downs, which can be volatile at times such as these. It does tug at your heart, I admit, but dang it, we have to hang in there! If everybody pills their money out, then the market will crash.
I commend your vigilance and faith in the markets. But I think anyone who has equity ownership should have the risk tolerance (strength of stomach) to watch their portfolio drop by 40% (2000 and 2008). And they should have the risk capacity to watch that happen and not NEED to sell before the recovery - which have always happened. Oh, except for the stagflation of the 70's.
It is always about personal time frames. Looking at stock market long term gains is silly if you don't have a long time left on Earth. But if you are young and are hopeful for our world, hang in there.
Bill For predicting the stock marketтАЩs short-term gyrations I prefer to have Greek priests interpret goat entrails. For an investor, as you note, the key element is tolerance for risk. I consider the biggest danger when the market drops sharply is to sell, unless this is a stock in which you no longer have confidence in its core business.
I have no clue as to where the stock market will be in five years and which stocks will be winners. (And losers).
I adopted a buy-and-hold strategy over 60 years ago. In early 1960s I decided not to buy/holding manufacturing company stock. Pharma, insurance, several consumer stocks were my core, modest investments. I also saw no advantage in balancing my portfolio between stocks and bonds. Especially in times of high inflation, the redemption value of a bond plummets in real dollars.
One needs guts, stupidity, and luck to stand firm with my investment policy. In real dollars, between Dec. 1969 and February, 1982 basic stock indicators plunged over 50%. On October 28, 1987, in a single day the market plunged 28&. At the start of the pandemic, some stocks fell by over 50%.
My buy-and-hold-strategy, plus luck, has worked out well for me, with some very modest investments 50-60 years ago doing spectacularly. My belt-and-suspenders in recent years has been to include some stocks that pay 3-7 percent dividends. I do not like paying capital gains and have done this rarely. I donтАЩt understand tech stocks, consider Bitcoin Bitcon, and donтАЩt invest in oil or tobacco. I look at the daily stock market much like I glance at sports scores. Of course, being 88 next month, my long-term horizon is shorter than for my kids and grand kids, for whom I intend to provide moderately, after my wifeтАЩs and my charitable legacies. CALCULATE YOUR PERSONAL RISK QUOTIENT, DONтАЩT PANIC WITH A SHARP MARKET DROP [since August, 1982 the Dow has gone from 762 to unimaginable heights), AND PRAY FOR LUCK TO COMPENSATE FOR YOUR STUPIDITY.
Your wisdom is stunning. Your humility is refreshing.
Thank you, Professor, for sharing your wisdom and personal experience!