5 ms·

There's a 15% off sale on stocks. If you are buying stocks in order to invest for the long term, that should make you very happy. You should be learning that st

There's a 15% off sale on stocks. If you are buying stocks in order to invest for the long term, that should make you very happy. You should be learning that stock market corrections or bear markets are normal and nothing to worry about. If you invested money in stocks that you need in the short term, you are beginning to learn why you don't do that.

seanmcdirmid 5y ago
> You should be learning that stock market corrections or bear markets are normal and nothing to worry about. People are increasingly holding their money in stocks even close to when they need it (e.g. retirement) because rates for safer bonds have been mostly below inflation. Of course the market can go down, if you get really unlucky, it can take a few decades to recover, but that hasn't happened for just short of a hundred years now (as long as since the last major pandemic).
01100011 5y ago
> There's a 15% off sale on stocks 15% off from what? 15% off the maximum value achieved during a period of unprecedented monetary and fiscal stimulus? Given the fed reversal, it's looking pretty clear that stocks will fall quite a bit further. Buying equities now is tantamount to fighting the fed. Timing the market never works, so if you sit out you won't know when to get back in, but the entity with the power to dramatically influence asset prices has broadcast their intentions and is about to undertake actions which will significantly devalue equities over the next 6-12 months.
- rufus_foreman 5y ago
  >> Given the fed reversal, it's looking pretty clear that stocks will fall quite a bit further It sounds like you have information that isn't already priced into the market. That's awesome. You can get rich.
  - 01100011 5y ago
    Yes I appreciate the snark and understand what I'm saying is going to be like water off a duck's back to the average boglehead. It's being priced in over time. The market doesn't immediately price in future events. We've only rolled back the last 2-4 months of gains so far. I've already reacted accordingly. There's a lucky Boglehead or stonks investor who was happy to catch the falling knife when I sold. I feel sorry for them but what can you do? People want to believe simple market themes and not look at the driving forces. I'll go back to buy and hold in 6-12 months depending on the fed.
    - sydthrowaway 5y ago
      What percentage of your portfolio did you sell?
      - 01100011 5y ago
        About half, although that was mostly RSUs from my high growth tech job which was sure to get hammered by the rate hikes(and boy has it been hammered). I'd sell more but a lot of it was already in dividend paying stocks like Kraft Heinz which are doing ok and should weather the storm a bit better.
xur17 5y ago
The sp500 is ~6% off its high, not 15%.
- rufus_foreman 5y ago
  I was using the Russell 2000.

seanmcdirmid 5y ago

> You should be learning that stock market corrections or bear markets are normal and nothing to worry about. People are increasingly holding their money in stocks even close to when they need it (e.g. retirement) because rates for safer bonds have been mostly below inflation. Of course the market can go down, if you get really unlucky, it can take a few decades to recover, but that hasn't happened for just short of a hundred years now (as long as since the last major pandemic).

01100011 5y ago

> There's a 15% off sale on stocks 15% off from what? 15% off the maximum value achieved during a period of unprecedented monetary and fiscal stimulus? Given the fed reversal, it's looking pretty clear that stocks will fall quite a bit further. Buying equities now is tantamount to fighting the fed. Timing the market never works, so if you sit out you won't know when to get back in, but the entity with the power to dramatically influence asset prices has broadcast their intentions and is about to undertake actions which will significantly devalue equities over the next 6-12 months.

rufus_foreman 5y ago
>> Given the fed reversal, it's looking pretty clear that stocks will fall quite a bit further It sounds like you have information that isn't already priced into the market. That's awesome. You can get rich.
- 01100011 5y ago
  Yes I appreciate the snark and understand what I'm saying is going to be like water off a duck's back to the average boglehead. It's being priced in over time. The market doesn't immediately price in future events. We've only rolled back the last 2-4 months of gains so far. I've already reacted accordingly. There's a lucky Boglehead or stonks investor who was happy to catch the falling knife when I sold. I feel sorry for them but what can you do? People want to believe simple market themes and not look at the driving forces. I'll go back to buy and hold in 6-12 months depending on the fed.
  - sydthrowaway 5y ago
    What percentage of your portfolio did you sell?
    - 01100011 5y ago
      About half, although that was mostly RSUs from my high growth tech job which was sure to get hammered by the rate hikes(and boy has it been hammered). I'd sell more but a lot of it was already in dividend paying stocks like Kraft Heinz which are doing ok and should weather the storm a bit better.

xur17 5y ago

The sp500 is ~6% off its high, not 15%.

rufus_foreman 5y ago
I was using the Russell 2000.