How much did we lose today?
But that got me to thinking how I am extremely reluctant to buy when the market goes up, even when I simultaneously expect that it can and will rise more. It’s irrational, and sometimes I overcome it, but I can’t shake it.
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The psychology of it cannot be overstated. @DawgsCanDanceHHusky said:I was asked this again, by she who must be considered, in light of the stock market drop today. My answer is always the same: “Nothing. We’ve never sold shares because the market goes down.” In fact, as we often do when there’s a slide, we bought some shares today.
But that got me to thinking how I am extremely reluctant to buy when the market goes up, even when I simultaneously expect that it can and will rise more. It’s irrational, and sometimes I overcome it, but I can’t shake it. -
@RaceBannon says it best "well, I've been drinking more lately"
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This is the same concept as when my wife says she 'saved' a bunch of money by purchasing TWO things instead of just one out shopping.
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At 20,000 I was same - this is a horrible time to buy right at the top. It's 30,000 nowHHusky said:I was asked this again, by she who must be considered, in light of the stock market drop today. My answer is always the same: “Nothing. We’ve never sold shares because the market goes down.” In fact, as we often do when there’s a slide, we bought some shares today.
But that got me to thinking how I am extremely reluctant to buy when the market goes up, even when I simultaneously expect that it can and will rise more. It’s irrational, and sometimes I overcome it, but I can’t shake it.
The initial covid dip has been about as low as it got in recent times -
One comment I can make is that in history if the market is ever down -25 or more from the previous peak if a person has stepped up and invested even a portion of their capital regardless of the nature of the calamity, they have done very well. Of course that assumes that you are not looking a repeat of the 30's where the market is simply not going to come back for a decade or more... as my dad used to say, if you want to, you can always identify a problem with any blanket assertion.
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Related thing. I have been thinking about pulling money out of the mutual fund my IRA money is in. Not removing it from the account, just letting it sit as cash for awhile. I know the conventional wisdom is never try to time the market, and I never have before, but I just have this nagging feeling that the other shoe will drop in the next year and we will have a big 20% correction (or whatever) and a few years of choppy markets. Anyone have any thoughts on this?
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I just did this with my Roth IRA last week. I'm leaving my regular IRA alone.Swaye said:Related thing. I have been thinking about pulling money out of the mutual fund my IRA money is in. Not removing it from the account, just letting it sit as cash for awhile. I know the conventional wisdom is never try to time the market, and I never have before, but I just have this nagging feeling that the other shoe will drop in the next year and we will have a big 20% correction (or whatever) and a few years of choppy markets. Anyone have any thoughts on this?
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Yeah, this is the question with which I've been struggling for the last month or so. I wish I would have had the balls to do it $150,000+ ago.Swaye said:Related thing. I have been thinking about pulling money out of the mutual fund my IRA money is in. Not removing it from the account, just letting it sit as cash for awhile. I know the conventional wisdom is never try to time the market, and I never have before, but I just have this nagging feeling that the other shoe will drop in the next year and we will have a big 20% correction (or whatever) and a few years of choppy markets. Anyone have any thoughts on this?
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This is my deepest darkest fear; that timeframe would cross my retirement line.DawgsCanDance said:One comment I can make is that in history if the market is ever down -25 or more from the previous peak if a person has stepped up and invested even a portion of their capital regardless of the nature of the calamity, they have done very well. Of course that assumes that you are not looking a repeat of the 30's where the market is simply not going to come back for a decade or more... as my dad used to say, if you want to, you can always identify a problem with any blanket assertion.
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An argument for always holding some cash. Deflation averaged 10% a year 1930-33. And for a brave soul willing to buy every time the S&P 500 declined 10 or more percent, there were also some spectacular rises. Still, that would be nerve wracking.creepycoug said:
This is my deepest darkest fear; that timeframe would cross my retirement line.DawgsCanDance said:One comment I can make is that in history if the market is ever down -25 or more from the previous peak if a person has stepped up and invested even a portion of their capital regardless of the nature of the calamity, they have done very well. Of course that assumes that you are not looking a repeat of the 30's where the market is simply not going to come back for a decade or more... as my dad used to say, if you want to, you can always identify a problem with any blanket assertion.
