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Scopes
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Re: Stock Market
[Re: mike35549]
#3025685
01/28/20 09:53 AM
01/28/20 09:53 AM
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Joined: Aug 2018
Posts: 5,814 Georgia and Missouri
Semo
12 point
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12 point
Joined: Aug 2018
Posts: 5,814
Georgia and Missouri
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The market goes up and the market goes down, but it always goes up more than it goes down. As long as you are steadily (Weekly, bi-weekly, monthly) buying stock index funds you are practicing "Dollar Cost Averaging." And as long as you are in it for the long haul, you are going to come out on top. Simple as that. Dollar Cost Averaging explained... https://www.nerdwallet.com/blog/investing/dollar-cost-averaging-2/Stop worrying about dips in the market. I'm investing over 1/5th of my pre-tax income in the market and I ain't skeered. I agree the question is at what age do you start transitioning away from stocks and into bonds or something less volatile, and at what percentage of each as you reach retirement and through your retirement years. Not as much age and more a time horizon question. Plus, depends on what the money is for and how much is needed. Regardless, it has been hard over the last 15 years to be "properly" allocated for many because the fixed income side is bad. Making up that yield has put a ton more risk on the average portfolio. You used to see 25-75, and a lot of 40-60 portfolios, but most can't make that work and have much riskier 60-40 splits...looked good that last 4 years. I'm out of the business now, but still direct (help out) on a couple accounts. IMO the Obama law expanding fiduciary responsibility will come back to bite investors more. Tons were taken off actively managed accounts and individual investments and transferred to index funds. We shall see, but that has me more worried than whether an account is 40-60 or 60-40. I still like a majority of individual high div. stocks and individual bonds while adding open or closed end funds to get the diversity needed ( on both the equity and fixed side).
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Re: Stock Market
[Re: Bugmaster]
#3025688
01/28/20 09:59 AM
01/28/20 09:59 AM
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Joined: Jun 2013
Posts: 1,066
BibbHunter
6 point
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6 point
Joined: Jun 2013
Posts: 1,066
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Anyone check there portfolio today? I took a big hit today across the board. How does a virus that has only affected 2700 people in the world cause the market to go down so much? Only affected 2700 people? It will drastically hit the economy. Think about all of the people who will not travel to China now. Companies are banning employees to travel like Facebook. Less plane tickets which means less fuel used, less hotels, less rental cars, less restaurant traffic. Not only that but people in China are being quarantined which means less tourism $ for the US, less people going to Vegas to gamble, and so on. The epidemic is just in the early stages, so it could get much much worse.
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Re: Stock Market
[Re: Irishguy]
#3025690
01/28/20 09:59 AM
01/28/20 09:59 AM
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Joined: Aug 2018
Posts: 5,814 Georgia and Missouri
Semo
12 point
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12 point
Joined: Aug 2018
Posts: 5,814
Georgia and Missouri
|
The market goes up and the market goes down, but it always goes up more than it goes down. As long as you are steadily (Weekly, bi-weekly, monthly) buying stock index funds you are practicing "Dollar Cost Averaging." And as long as you are in it for the long haul, you are going to come out on top. Simple as that. Dollar Cost Averaging explained... https://www.nerdwallet.com/blog/investing/dollar-cost-averaging-2/Stop worrying about dips in the market. I'm investing over 1/5th of my pre-tax income in the market and I ain't skeered. It is a good strategy. The funds, advisors and brokerages love it too cause it is scheduled money coming in. It is a great method for many families to build wealth (I recommend it), but the big boys ain't doing it....
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Re: Stock Market
[Re: Semo]
#3025852
01/28/20 01:13 PM
01/28/20 01:13 PM
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Joined: Nov 2011
Posts: 21,963 USA
Remington270
Freak of Nature
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Freak of Nature
Joined: Nov 2011
Posts: 21,963
USA
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the big boys ain't doing it.... The big boys can't beat the S&P either, on a long term basis. Warren Buffet made that bet and won recently, over a 10 year period. Hedge funds are dying because the big boys take all the profits and don't leave the investors with any. It's amazing people still sign up for it.
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Re: Stock Market
[Re: Remington270]
#3025880
01/28/20 01:39 PM
01/28/20 01:39 PM
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Joined: Aug 2018
Posts: 5,814 Georgia and Missouri
Semo
12 point
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12 point
Joined: Aug 2018
Posts: 5,814
Georgia and Missouri
|
the big boys ain't doing it.... The big boys can't beat the S&P either, on a long term basis. Warren Buffet made that bet and won recently, over a 10 year period. Hedge funds are dying because the big boys take all the profits and don't leave the investors with any. It's amazing people still sign up for it. That is kind of a "price if tea in China" argument. DCA is very good cause it is a disaplined approach. But that doesn't take away from the fact that it might not optimize outcomes. I do it, but at times I wish I would hold back the inputs and wait for a correction. Or change the allocations of the monthly inputs. I never brought up hedge funds in my point. I said open and closed ended funds. Some of which have remarkable records of returns over the last 50+ years...Better than the indices. I used to know the numbers, but it was something like the Ave. market returns were 12.7% since 1910 but the Ave. investors returns were like 2%. So, yes DCA sets up a guard rail against that......
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