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It’s rough out there but peeking at your balances does little to alleviate angst over the market meltdown. A recent Barron’s article reminded me that “it’s all paper losses anyway, unless you sell. if you do that, you lock in your losses, and then you have to worry about getting back in. Typically, by the time Investors feel comfortable returning to the market, stocks will have already appreciated and investors will have missed.out on the recovery.”
Many are looking to this week to provide a clearer picture as to the markets direction. This is not my first rodeo so I have a good idea of my strength of resolve to stay the course. I just hope the ride isn’t too bumpy. The first time I faced a serious downturn in the market I was younger. I regretfully sold. Stay the course can be less comforting to new retirees who stand to risk the most in a market rout.
Older, wiser and situated better, financially, I’m hoping all my favorite names will be on sale.
All paper losses yup, and mine will stay that way, but it’s still mighty frustrating to see something you like to think you had in hand evaporate in a few weeks. When one day’s red figure is $110,000 it’s not a good feeling. And then I think about why.
There’s always money in the Mercedes 🙂
Not always. My old one was worth only $3,500.
Dick, I’m not minimizing the discomfort of a declining balance, especially if you need the money any time soon. you can keep a years worth of expenses in cash, if possible, to prevent having to withdraw from retirement accounts in a down market.
Jonathan recommends spending less—start with small expenditures—like Cutting down on chocolate covered cherries. 🍒 😊
VERY diplomatic last sentence Dick.
Got to admit that I’m concerned but still holding on. Reality is I have a substantial cash/cash equivalent buffer to get me through a few years but as this is in all likelihood a year of transition for me I am concerned that this is more than pricking a bubble but instead deliberately and recklessly destabilising the world for egotistical and possibly foreign power purposes.
In short it’s not about the short term damage but the US making itself an unreliable state without the checks and balances to reign in extreme policies. That could be a much harder problem to overcome.
Ah, yes, “Survivor Bias”.
I Learned through inexperience and error, like most of us.. Thanks for your comments, Norman.
Some investors never learn, instead always looking for ways to outsmart the market. But as your post suggests, for many, age really does bring wisdom, and this will feel like a movie they’ve seen before, but with the facts and the characters somewhat changed.
And like seeing a movie a second time, nothing seems quite as intense and dramatic.
Thanks for lending credence to my viewpoint, Jonathan. It’s good to be aligned with a keen mind.
“And like seeing a movie a second time, nothing seems quite as intense and dramatic.”
Isn’t that the truth! My portfolio paper loss is down more this time than any other time, but I haven’t overreacted. I gain more wisdom when there is a situation like this, or watching the movie a second, third or fourth time.
Olin, the best thing about your positive attitude is that you always have something good or encouraging things to say.
This, in turn motivates others to find a measure of contentment in all aspects of their lives. Thanks, Olin
You are very kind Marjorie! Your encouragement reminds me of Isaiah 30:15, in quietness and trust is your strength.
Thank you, Olin. I feel my life has been enriched by you and so many Humble Dollar contributors.