Losing value from time the time is the price an investor must be prepared to pay for the chance of bigger gains. As everyone in this thread understands, even those who pretend not to.
any net buyer of stocks should want the market to fall. Nay, crash. So you can buy shares cheaper. The idea is that the market will go where it's going to go, so if you can buy shares cheaper, all the better.
gets trickier if you are near retirement. And if you are IN retirement and drawing from your portfolio...you definitely do not want the market to fall.
today could be an interesting day. Yields are falling quite sharply, there is good earnings news, a good econ number today, and for now anyway, twitter might be sold. Those are bullish.
But sentiment is catastrophic...will actual good news be enough to turn this ship around? Maybe. QQQ now down just 28 bps in the preopen. A nice snapback would be reassuring. Maybe scared retail investors will sell at the open and then buyers will step in.
Why can't you explain why losing 20% plus of your equity something you view as a good thing?
Very simple question.
Of course I want a serious answer.
If US markets decline by 20%, I will be exposed to a loss of 20% of 25% of my equity holdings (the US equities), or a loss 5% of my equity holdings. If / when the US markets have declined 20%, that presents a buying opportunity for me to put my cash to work.
My belief is that the net effect of a 20% drop will be strongly positive to me over any reasonable investment timeframe, and that, in the theme of "you have to spend money to make money," a small loss sets me up for a net gain.
There is my serious answer. I'm pretty sure everyone understood my meaning, including you. But again, perhaps not. Ignorance, or dishonesty?
Why can't you explain why losing 20% plus of your equity something you view as a good thing?
Very simple question.
Of course I want a serious answer.
If US markets decline by 20%, I will be exposed to a loss of 20% of 25% of my equity holdings (the US equities), or a loss 5% of my equity holdings. If / when the US markets have declined 20%, that presents a buying opportunity for me to put my cash to work.
My belief is that the net effect of a 20% drop will be strongly positive to me over any reasonable investment timeframe, and that, in the theme of "you have to spend money to make money," a small loss sets me up for a net gain.
There is my serious answer. I'm pretty sure everyone understood my meaning, including you. But again, perhaps not. Ignorance, or dishonesty?
carmine is the very essence of a troll - all he cares about is annoying people and trying to get under their skin. Sort of a weird way to spend your day but there it is.
carmine is the very essence of a troll - all he cares about is annoying people and trying to get under their skin. Sort of a weird way to spend your day but there it is.
Oh, I know. Sometimes I enjoy the chance to call him stupid without actually calling him stupid. :-D
Why can't you explain why losing 20% plus of your equity something you view as a good thing?
Very simple question.
Of course I want a serious answer.
If US markets decline by 20%, I will be exposed to a loss of 20% of 25% of my equity holdings (the US equities), or a loss 5% of my equity holdings. If / when the US markets have declined 20%, that presents a buying opportunity for me to put my cash to work.
My belief is that the net effect of a 20% drop will be strongly positive to me over any reasonable investment timeframe, and that, in the theme of "you have to spend money to make money," a small loss sets me up for a net gain.
There is my serious answer. I'm pretty sure everyone understood my meaning, including you. But again, perhaps not. Ignorance, or dishonesty?
If US markets decline by 20%, I will be exposed to a loss of 20% of 25% of my equity holdings (the US equities), or a loss 5% of my equity holdings. If / when the US markets have declined 20%, that presents a buying opportunity for me to put my cash to work.
My belief is that the net effect of a 20% drop will be strongly positive to me over any reasonable investment timeframe, and that, in the theme of "you have to spend money to make money," a small loss sets me up for a net gain.
There is my serious answer. I'm pretty sure everyone understood my meaning, including you. But again, perhaps not. Ignorance, or dishonesty?
carmine is the very essence of a troll - all he cares about is annoying people and trying to get under their skin. Sort of a weird way to spend your day but there it is.
When you can't defend your argument, smear the messenger.
The point being money coming out of stocks going into bonds, equals risk off. Has little to do with Fed or valuations in this instance.
fair enough that the old regime is not working today....rates are down, oil is down, and still stocks are selling off. Probably a few weeks ago oil down and rates down would have sparked a rally in stocks. Seems that people just don't want to own stocks at all right now.
Tech down 21% from all time highs now....seems that if you are at all a believer in the tech sector you have to start getting interested at these levels.
The point being money coming out of stocks going into bonds, equals risk off. Has little to do with Fed or valuations in this instance.
fair enough that the old regime is not working today....rates are down, oil is down, and still stocks are selling off. Probably a few weeks ago oil down and rates down would have sparked a rally in stocks. Seems that people just don't want to own stocks at all right now.
Tech down 21% from all time highs now....seems that if you are at all a believer in the tech sector you have to start getting interested at these levels.
tech now up on the day.
I need to stop watching the tape. Driving me nuts.
1. Isn't that timing the market which you all say is a bad idea?
2. How do you know when it's at a high? Or a low?
This is all mumbo jumbo.
It's simply gambling. You make your guesses and you roll.
Unlike sports betting, there is a good chance you can come out ahead in the "long run".
Of course nobody knows what the long run is.
In any event, unless you have pulled out of virtually all equities, looking forward to a large dip in the immediate future makes no sense.
1. No. Market timing typically refers to short term trading…think day traders. Buying the dip is a strategy used effectively by buy-and-hold investors.
2. Trying to identify a low or high in real time is an example of timing the market. It is a fool’s game. When someone talks about buying low or selling high, they mean that in relative terms.