After losing half of its value during the economic meltdown, I'm ecstatic to see it regain about 80% of the losses. Thank christ I didn't touch a god damned thing when I saw how badly I was fucked back in January. For those who invest more, I'm curious to see what people think of my allocation. Two years ago I moved everything so that: 50% is in the Vanguard 500 Index Fund (I figure Index funds are low cost and generally perform about as well as more managed funds) 20% in American Funds EuroPacific Growth 20% in American Funds Growth Fund Of America 10% in Longleaf Partners Small Cap I'm only 36, so I figure risky is better at my age.
I didn't sell off anything, but I started buying more company stock when it was ridiculously low, now shifting back to int'l growth and small cap a bit. But I'm 32.
I got 80% recovery too this last quarter. I remember having like 15% losses. Last quarter alone I had like 12% gains.
It's very important for folks to remember, that when investing, you don't actually lose money until you sell at a loss. When your accounts are down due to market conditions, just remain patient, don't panic, and wait. It will turn around, and if you are well diversified you will weather the storm. My 401k and Roth IRA are doing great again. But my investments in Ford and Bank of America when they hit rock bottom are doing even better. I am averaging 5% gain per day over the last several weeks. That's right. 5% per day.
This is true and my patience has similarly paid off. However, there is a high likelihood of a repeat of last fall as more unleveraging occurs thanks to our friend the OTC derivative market. As that incomprehensible wad of debt unwinds there will be a greater call for stimulus (in fact the calls for more stimulus are already happening) which will further undermine the dollar. I thought that Obama would get a green bubble going and invested in February of 2008 in green energy. That was a huge mistake. My precious metal mining funds not only have almost completely recovered, they also should sky rocket along with gold and silver when the next round of stimulus occurs. I was really hoping for a green energy bubble both for selfish reasons of gaining money and also for my son and future generations. I'm afraid that the green energy bubble may not occur as it looks like Cap and Trade of carbon is the next favored bubble of the financial elite. Green energy could still take off but I'm planning on selling most if not all of it this month and staying in cash and then will scoop up value after the next mega correction before all assets rise with out of control inflation. PM me if you have any interest in what I'm saying. I LOVE to talk finance, economics and geo-politics. P.S. if you don't have 10% of your portfolio in precious metals, preferably in a safe in your house, then you are exposing yourself to the ravages of the the mega perhaps even hyper-inflation that is coming. I don't store mine at home because I live in a questionable neighborhood but if I could I most definitely would.
Why would I listen to the investment advice from somebody that can only afford a "questionable neighborhood"? Just kidding. Sorry, I couldn't resist.
One thing you could do is have guns made of precious metals. Then you could defend your stash with your stash. barfo
Well, that's true, but very few people "sell" their 401(k) at a loss, or even think about doing so. The only reason you open a 401(k) in the first place is to leave your money in and let it build over time, regardless of market fluctuations. Only someone who was already retired and desperately needed the money would cash in a 401(k) when it was way down.
Why, because I'm not an overleveraged idiot living in an adjustable rate mortgage timebomb house? I actually save and invest what I own. I wouldn't keep that kind of loot in my house unless I lived ina gated community but I'm not there yet. I know lots of people who were making 80K+ just a year ago and now have lost everything. I know people who were worth a Million on paper just a couple of years ago in real estate who were over leveraged and got wiped out. I called the dotcom bubble right and also this crash as well. I tried to get my parents to sell their house in 2006 and helped my dad retire that year and get his retirement locked in prior to the crash. I'm EXTREMELY fiscally conservative in my personal life (Green energy was my one risky investment as I'm young and need growth in the portfolio) so I live BELOW my means and save. It's served me VERY well thus far. Most people I know are far worse off then they were two years ago. My situation has improved.
The man with the golden gun. I like it. By the way Barfo I'm not a Republican just don't trust the direction either party is taking this government or it's currency. Just my opinion. Here's a prediction for ya'll. There will be a massive crash equal to or exceeding the one last fall within the next 4months followed by more stimulus and unparalleled inflation. The crash and stimulus will happen no later then 12/31/09 and that will lock in future massive inflation. Just watch. The dollar is dead it just doesn't know it yet.
Sorry to over react, but lets say I'm not happy with my present living situation. I'm very cautious with taking on debt and feel the housing market has a ways to bottom before I want to buy. I also want to have a massive down payment so I can have better monthly cash flow once I'm locked into a mortgage.
I agree. I had some IO product on a few of my rentals and refi'd them with fixed. You can't print money the way we have without it being worth less and the risk of it increasing.
I applaud those who truly live below their means. It's hard to do, especially when you see your friends and family live a higher standard on less money. My only advice is that you make these sacrifices worth it and invest in instruments that act as an inflation hedge. Otherwise the coming inflation may render your cash-strong position worthless. Edit: I've seen blazerboy post here for a while, and I can assure you he was just poking a bit of fun at you. He's as good-natured as they come.
