Coronavirus vs Investing

[rx7boi]

As Bill mentioned, another effective approach is thinking about what plans you have to increase capital so that you can capitalize on the opportunity and buy more heavily during a downturn.

The thing about passive investing is that I pretty much just put everything into the portfolio since I intend to ride it out over decades. My strategy doesn't leave a substantial amount left on the sidelines since I don't try to time the market.

As a purely casual thought exercise, I've been toying with the idea of borrowing to invest which is something I've never done before and it would mean changing my strategy.

[eblend]

Makes sense, but I guess my justification at the time is that I was only 2 month's in, already got a dividend, and wanted to return and buy on some sale. I will probably buy in smaller portions over time.

I do have 30k in other random stocks, those are down like 10% and I don't intend on touching those at all, it's all small 5k positions in 6 different companies, but I won't sell. I wouldn't have sold VGRO if it was down either, but since i was able to get out for what I paid for it (and got a dividend to boot) I figured I will return and re-buy at hopefully a better price. At the moment I think there is still lots of downside potential, but who knows. We will see how things play out, the virus isn't slowing yet and it's only getting worse.

We will see. I think the reason I am on the edge right now is that things seem too over valued and lots of talk of the market crashing...I don't want to be left holding the stick and then having multiple years of waiting just to get back to where I started instead of growing. Once I rebuy, I will hold it for next 20-30 years.

[The_Rural_Juror]

I am doing the opposite of what you all are doing because I am autistic like that. For real.

[Kobe]

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Makes sense, but I guess my justification at the time is that I was only 2 month's in, already got a dividend, and wanted to return and buy on some sale. I will probably buy in smaller portions over time.

I do have 30k in other random stocks, those are down like 10% and I don't intend on touching those at all, it's all small 5k positions in 6 different companies, but I won't sell. I wouldn't have sold VGRO if it was down either, but since i was able to get out for what I paid for it (and got a dividend to boot) I figured I will return and re-buy at hopefully a better price. At the moment I think there is still lots of downside potential, but who knows. We will see how things play out, the virus isn't slowing yet and it's only getting worse.

We will see. I think the reason I am on the edge right now is that things seem too over valued and lots of talk of the market crashing...I don't want to be left holding the stick and then having multiple years of waiting just to get back to where I started instead of growing. Once I rebuy, I will hold it for next 20-30 years.

I don't believe the virus is the reason behind this "flash crash" this was basically inevitable and markets kept going up while cases in the USA were found, it defeats the purpose for me. This can't be the main reason for it, it can be a factor.

I'm going to give you some advice about retracements, there is a golden rule "Bankers rule" that has 61.8% as the main retracement % (As are 23.6%/38.2%/50%/76.4% but 61.8% is the main one)

You can study this with "Fibonacci retracements" with a simple google search.


We can assume that whatever the top is and bottom is (If this isn't the bottom) we will retrace back 61.8% of the move downwards. (Same goes in opposite directions)


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Everyone should learn this that are investing, when everyone and their mother is telling you to invest and your scared of missing out your going to be a millionaire you can guess which point that is.

When everyone thinks it was just a pullback and nothing to panic about you can guess what point that is.

You need to look at the big picture you keep mentioning "A better price" you need to figure out what the "Better price is"

You also keep mentioning "over-valued" we have learned this doesn't mean much in markets, they can also be "undervalued"

There is Apples Balance sheet: https://www.marketwatch.com/investin...apl/financials

You can access yourself if you think the Incomes match the value of the stock price.

It doesn't matter at what price you buy for a long-term investment (If you believe in the USD) statistics have shown over time you will get a better ROI on your investment if you buy it at the tops or bottoms rather than buying/selling randomly.

*Don't invest anything you can't lose.

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I am doing the opposite of what you all are doing because I am autistic like that. For real.

Smart! https://www.dailyfx.com/sentiment

[The_Rural_Juror]

This ain't going to make me 89coupe rich, but I will surely be the proud owner of a Patagonia fleece vest in 4-7 business days.

[Mitsu3000gt]

I am loving this personally, as should most people who aren't near retirement. Time to buy some more VGRO.

[Cagare]

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I am loving this personally, as should most people who aren't near retirement. Time to buy some more VGRO.

Par for the course, happens once or twice a decade. People both within a year or two of retirement may not like this. Those that just retired definitely do not like this.

[A790]

Bought BAM.A, XAW, and VGRO today. Sold a bunch of ZLC right before it took a mid-day dive. Bought again once my equity orders will filled.

My strategy is to buy every Friday and that's what I'm going to do. Kind of laughing at myself for putting ~ $20k on the market in Jan/Feb when it was at ATH, but the strategy is the strategy and discipline is what will win out long-term. Don't want to pull a Sugarphreak and panic sell (especially since he did so before an amazing run-up... lol).

Wish I had more cash on hand, but I doubt that this will be a week before it's fixed again, and I'll be much more liquid come tax time. A correction is due and this looks like it could be it.

EDIT: Anyone who is 15+ years out from retirement and selling funds like VGRO right now are kind of missing the point of passive investing. The point isn't to buy high and sell low, folks...

[Mitsu3000gt]

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Par for the course, happens once or twice a decade. People both within a year or two of retirement may not like this. Those that just retired definitely do not like this.

Those that are close to or have just retired should have moved their investments into something less volatile like VCNS, IMO (though VGRO is still on the conservative side of things). I plan to transition from VGRO --> VBAL --> VCNS (or a similar progression) as I near retirement.

[Buster]

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Those that are close to or have just retired should have moved their investments into something less volatile like VCNS, IMO (though VGRO is still on the conservative side of things). I plan to transition from VGRO --> VBAL --> VCNS (or a similar progression) as I near retirement.

fuck that. Ride or die bishes.

[A790]

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Those that are close to or have just retired should have moved their investments into something less volatile like VCNS, IMO (though VGRO is still on the conservative side of things). I plan to transition from VGRO --> VBAL --> VCNS (or a similar progression) as I near retirement.

I was also going to say...

If you're in retirement mode and you are still heavily invested in equities, well, you kinda fucked up.

And VGRO is 80% equities, not very conservative. I know these days the sentiment is "OMG STONKS", but the fact remains that an 80/20 equities/bonds split is still pretty aggressive. And when you hit retirement, preservation of capital is as, or more, important than growth. If you had $2MM in bonds/etc. yielding 2% you'd be earning $100k/year. Taxable, sure, but why fuck with that? The risk is dramatically, massively, hilariously lower.

Look at a bond fund like ZAG right now. If you are retired and sitting on a ton of ZAG, your attitude is very much "what problem?". The fund has barely moved, it yields 2.7%, and it's comprised heavily of government bonds. No investment is risk-free, but ZAG is pretty darn close.

If you are near retirement, and 60% or more of your portfolio isn't in safer investments like ZAG, well, you kinda fucked up... lol.

[suntan]

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Wife has a sizeable inheritance coming in and I have a good chunk of money from a LIRA transfer.

My investment strategy will consist of taking rx7boi's wife.

[89coupe]

So many investment gurus on here, you must all be bathing in money.

Oh what it must be like to be Beyond rich.

[killramos]

Still a few levels below aspen rich, but sure feels good

[A790]

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So many investment gurus on here, you must all be bathing in money.

Oh what it must be like to be Beyond rich.

I mean, buy and hold quality companies and the virtues of passive investing are pretty well established. The entire point is to hold and not spaz out during corrections or unexpected events like this.

If you think the world is going to end because of CoVid-19, sure, sell it all and party the remaining days away. If you think the global economy will survive, albeit there is going to be some short-mid term bullshit along the way, it doesn't make sense to sell investments that you made on a long time horizon because the next couple of years might be rocky.

What do you know that the rest of us don't?

[rx7boi]

I'm not sure what 89coupe is trying to say.

On page 1 he hits us with a "buy buy buy" but now it seems like he came back on page 3 to snub his nose at us for something I can't quite place my finger on.

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This ain't going to make me 89coupe rich, but I will surely be the proud owner of a Patagonia fleece vest in 4-7 business days.

I've been loathe to spend money on them Canada Goose coats but spring is here now that I'm ready to bite the bullet

[killramos]

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I'm not sure what 89coupe is trying to say.

Hint: He’s a one trick pony

[A790]

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I'm not sure what 89coupe is trying to say.

On page 1 he hits us with a "buy buy buy" but now it seems like he came back on page 3 to snub his nose at us for something I can't quite place my finger on.

lol maybe he "sold sold sold" and is now feeling slighted. Maybe he hasn't gone for a $100 lunch in a while and feels cranky over it. Who knows.

Or maybe he's being a smartass because that's half of the fun of beyond.

[Buster]

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I mean, buy and hold quality companies and the virtues of passive investing are pretty well established. The entire point is to hold and not spaz out during corrections or unexpected events like this.

If you think the world is going to end because of CoVid-19, sure, sell it all and party the remaining days away. If you think the global economy will survive, albeit there is going to be some short-mid term bullshit along the way, it doesn't make sense to sell investments that you made on a long time horizon because the next couple of years might be rocky.

What do you know that the rest of us don't?

If and when passive investing isn't the superior strategy, then it will be guns and ammo time.

[Cagare]

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Those that are close to or have just retired should have moved their investments into something less volatile like VCNS, IMO (though VGRO is still on the conservative side of things). I plan to transition from VGRO --> VBAL --> VCNS (or a similar progression) as I near retirement.

Equities was the only place for the past decade that money could be made. You sure as hell weren't doing it in fixed assets. Also, if your plan is to build a portfolio large enough to sustain you through retirement you are not in funds, you are invested in blue chip stocks that provide consistent returns. Which is what members of my family have done. Been able to sustain a living on it.

This isn't the 80's, 90's or even early 00's, interest rates are not supporting a retirement invested in fixed income.