Anyones portfolios getting pounded
05-17-2006, 11:12 PM
#1
Racer
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Anyones portfolios getting pounded
Ever since the fed raised interest rates again? I've lost about $800 in my 401k since that day.. I'm not going to make any changes but damn it hurts to see that money go so quick.
05-18-2006, 05:41 AM
#3
Team Owner
If the S&P gets below the low of 06 I will take corrective measures. Personally I think this is just market manipulation. How the can the S&P hit a new (5 year?) high and then get pounded like that?
05-18-2006, 06:26 AM
#4
dɐɹɔ ǝɥʇ ʇɐɥʍ
With my stock trading account, I don't play conventional(blue chip) stocks and this downturn hasn't effected me in the least, in fact this week I am up over $3k and today is Thursday and the market hasn't even opened yet 
I haven't paid attention to my retirement accounts, simply because a small hiccup like this at my age is nothing to worry about.
I haven't paid attention to my retirement accounts, simply because a small hiccup like this at my age is nothing to worry about.
05-18-2006, 08:46 AM
#5
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Originally Posted by Tireguy
I haven't paid attention to my retirement accounts, simply because a small hiccup like this at my age is nothing to worry about.
and I'm a bit older than you. It's all about LONG TERM INVESTMENTS. The guys who constantly switch funds around get hit the hardest. Find the funds with a history of success and let em ride. 
05-18-2006, 08:55 AM
#6
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Originally Posted by tonio
Ever since the fed raised interest rates again? I've lost about $800 in my 401k since that day.. I'm not going to make any changes but damn it hurts to see that money go so quick.
Try loosing over 8000 in the last few days. It is all part of the game. "what the market giveth, the market taketh". I am not worried about it though, I own good stocks but the market just took the hit as a whole.
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05-18-2006, 09:14 AM
#8
Senior Moderator
Originally Posted by doopstr
If the S&P gets below the low of 06 I will take corrective measures. Personally I think this is just market manipulation. How the can the S&P hit a new (5 year?) high and then get pounded like that?
If you have good holdings and are a long term investor, then just sit tight and hold on for the ride. Its mostly the short term investors who need to realy be concerned about all the dips and rises in the market (again, assuming you are holding decent stuff).
05-18-2006, 09:35 AM
#9
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Originally Posted by NOVAwhiteTypeS
down 13k since friday Man did i get it wrong this time... 
05-18-2006, 05:40 PM
#16
Team Owner
Originally Posted by fdl
If you have good holdings and are a long term investor, then just sit tight and hold on for the ride. Its mostly the short term investors who need to realy be concerned about all the dips and rises in the market (again, assuming you are holding decent stuff).
I will be rebalancing my IRAs this weekend. I need to research but I suspect some more bond funds are in my immediate future.
05-18-2006, 06:29 PM
#17
dɐɹɔ ǝɥʇ ʇɐɥʍ
Originally Posted by doopstr
I don't buy that as the best advice for long term investors. Investors that just think their portfolio will take care of themselves over the long haul are kidding themselves. The S&P has taken 5 years to recover from its losses and we just saw 6 months of gains erased in a week.
I will be rebalancing my IRAs this weekend. I need to research but I suspect some more bond funds are in my immediate future.
I will be rebalancing my IRAs this weekend. I need to research but I suspect some more bond funds are in my immediate future.
In other words if you've purchased the right things, don't bail on them now. The 5 year average for the S&P 500 composite index is 2.4%, yet its 1 year is 8.4% - its coming back and will continue to do so.
If you were 60, I think maybe some adjusting would be a wise move, but with 25+ years don't start making unwise decision's, it will cost you in the end. I am not super familiar with Vanguard funds, but if I recall they have different retirement index funds to choose from based on your age, to reduce your risk as you approach retirement so the peaks and valley's don't effect you. At the end of the day, these peaks and valley's won't impact us either - the tortoise always wins don't start acting like a hare
05-18-2006, 07:27 PM
#18
Team Owner
Below is an example of what I'm trying to show you and this is why, IMHO, that you can not leave your retirement on auto pilot. Below is a 5 year chart.
June 01 assume $100,000 in the fund (not total account) at the beginning of this chart.
August 01
Holy crap, its down 10%, what to do? Move the money out of there because something is wrong or lets ride it out. Fund balance is now $90,000.
Option 1. Lets move it out. Let's stick it in this bond fund that's hanging in there.
Option 2. Meh, its going to hang in there.
Feb 03
Option 1. Well I've got about $92000, not so bad.
Option 2. Oh snap, I've only got about $66000 in the fund. Let's hope things get better, and hope that the wife doesn't find out.
July 03
Option 1. Well the bond has kept me a float, however, it is sinking and violating the 10% loss rule. The S&P looks like it is doing very well since that nightmare of a fall. Let's dump the money in there. Fund balance about $93000.
Option 2. So far so good, the wife hasn't found out and I've got some of my loses back. Fund balance about $78,000.
May 06
Option 1. Hey the S&P has been doing really good lately, its up about 28% since July 03. But WTF happened this week? Hmm... What to do? Fund balance about $120,000
Option 2. Holy crap, it took 5 years and I almost thought I had my money back, but WTF just happened this week? Fund balance about $100,000
So in this case, sitting around would have cost about $20k. If you are fine with that, then do nothing.
Now I know you will want to argue that hindsight is 20/20 and it could have easily came back from that initial 10% dip. But IMHO when a fund/stock you are holding does something like lose 10%, something is wrong and its time to go for the life preservers.
June 01 assume $100,000 in the fund (not total account) at the beginning of this chart.
August 01
Holy crap, its down 10%, what to do? Move the money out of there because something is wrong or lets ride it out. Fund balance is now $90,000.
Option 1. Lets move it out. Let's stick it in this bond fund that's hanging in there.
Option 2. Meh, its going to hang in there.
Feb 03
Option 1. Well I've got about $92000, not so bad.
Option 2. Oh snap, I've only got about $66000 in the fund. Let's hope things get better, and hope that the wife doesn't find out.
July 03
Option 1. Well the bond has kept me a float, however, it is sinking and violating the 10% loss rule. The S&P looks like it is doing very well since that nightmare of a fall. Let's dump the money in there. Fund balance about $93000.
Option 2. So far so good, the wife hasn't found out and I've got some of my loses back. Fund balance about $78,000.
May 06
Option 1. Hey the S&P has been doing really good lately, its up about 28% since July 03. But WTF happened this week? Hmm... What to do? Fund balance about $120,000
Option 2. Holy crap, it took 5 years and I almost thought I had my money back, but WTF just happened this week? Fund balance about $100,000
So in this case, sitting around would have cost about $20k. If you are fine with that, then do nothing.
Now I know you will want to argue that hindsight is 20/20 and it could have easily came back from that initial 10% dip. But IMHO when a fund/stock you are holding does something like lose 10%, something is wrong and its time to go for the life preservers.
Last edited by doopstr; 05-18-2006 at 07:30 PM.
05-18-2006, 09:17 PM
#19
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I am the administrator of a family trust, and I have seen it loose about 50K in value in the last few weeks. It is still well above when I started last year, but this is part of the game. If you aren't in for the long haul, then you need to get into something more protected.
Michael
Michael
05-18-2006, 09:58 PM
#20
Senior Moderator
Originally Posted by doopstr
I don't buy that as the best advice for long term investors. Investors that just think their portfolio will take care of themselves over the long haul are kidding themselves. The S&P has taken 5 years to recover from its losses and we just saw 6 months of gains erased in a week.
I will be rebalancing my IRAs this weekend. I need to research but I suspect some more bond funds are in my immediate future.
I will be rebalancing my IRAs this weekend. I need to research but I suspect some more bond funds are in my immediate future.
05-19-2006, 11:00 PM
#23
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Originally Posted by M TYPE X
I want my money back! Off with Bernanke's head!... I'm down $500. It's criminal.
05-20-2006, 09:54 AM
#25
Team Owner
Originally Posted by fdl
My point is that long term investors dont go running for the hills at every dip in the market. Are you suggesting that we are in a bear market because of one week of losses?
With my chart above, when would you have decided that the S&P was in a bear market? My experience has been that the longer you wait to sell, the harder it gets.
05-20-2006, 11:24 PM
#26
Senior Moderator
Originally Posted by doopstr
I'm just saying that even the best stock/bonds can own you. By the time you realize we are in a bear market you will already have substantial loses.
With my chart above, when would you have decided that the S&P was in a bear market? My experience has been that the longer you wait to sell, the harder it gets.
With my chart above, when would you have decided that the S&P was in a bear market? My experience has been that the longer you wait to sell, the harder it gets.
Yup, no disagreement there. I just dont think one week is enough to start making big changes. I'd look more at the underlying fundementals. i.e. why is the market dropping. Is it just profit taking, etc?
05-21-2006, 09:01 PM
#27
trill recognize trill
this period is the down time of the market till about october if im not mistaken...i lost alot of money too, but nlst made up for most of it this week because of all my flipping
05-21-2006, 11:19 PM
#28
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Originally Posted by fdl
Its not market manipulation. The S&P cannot be "manipulated". Its a market correction and profit taking after a big runup. You needs these corrections to maintain a healthy market IMO.
If you have good holdings and are a long term investor, then just sit tight and hold on for the ride. Its mostly the short term investors who need to realy be concerned about all the dips and rises in the market (again, assuming you are holding decent stuff).
If you have good holdings and are a long term investor, then just sit tight and hold on for the ride. Its mostly the short term investors who need to realy be concerned about all the dips and rises in the market (again, assuming you are holding decent stuff).
That said, I took a whoopin' in the last week to the tune of about 8K. 
05-23-2006, 07:51 AM
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I think - like some people are saying - if you are in good funds - you can ride it out (assuming not knocking on retirement door)...cause this is where dollar-cost-averaging (something like that) comes into play. Yes, you are getting whacked, but you are also buying on the cheap then too. I do agree you have to keep an eye on your stuff and maybe trim it after a longer period of time. I only get nervous for the funds I am not actively contributing to - like a rollover IRA that can not be added to anymore - at least with my active 401k, I can say I am buying the same shares cheaper now...but with my other investments - kinda just like watching it get eaten up - I keep an eye on them all.
05-23-2006, 08:06 AM
#32
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Originally Posted by TBone2004
I think - like some people are saying - if you are in good funds - you can ride it out (assuming not knocking on retirement door)...cause this is where dollar-cost-averaging (something like that) comes into play. Yes, you are getting whacked, but you are also buying on the cheap then too. I do agree you have to keep an eye on your stuff and maybe trim it after a longer period of time. I only get nervous for the funds I am not actively contributing to - like a rollover IRA that can not be added to anymore - at least with my active 401k, I can say I am buying the same shares cheaper now...but with my other investments - kinda just like watching it get eaten up - I keep an eye on them all.
05-23-2006, 10:14 AM
#33
Team Owner
I took a beating last week. But, its all long term so I'm not too worried. Dollar costs averaging and rebalancing will take care of things in the long term. 
05-23-2006, 12:33 PM
#34
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Originally Posted by jlukja
I took a beating last week. But, its all long term so I'm not too worried. Dollar costs averaging and rebalancing will take care of things in the long term.
by edit.