31–40 of 228 posts
> Market is collapsing. If you are not retired, then markets being down are a good thing, because everything is "on sale" / at 'discounted' prices. At least for the US† (S&P 500, NASDAQ, Russel 2000), the historical 1-, 3-, 5-, and 10-year returns after a 25% drop are quite good: * https://awealthofcommonsense.com/2022/10/getting-long-term-b... If you've been foolish enough to cash out—which should really never been…
Are you in Europe or the States? The two areas have vastly different economic outlooks. The outlook in the US can best be described as "uncertain". Valuations are down because the market doesn't like uncertainty, but it doesn't necessarily translate into a future recession -- many of the economic indicators in the US are very positive. OTOH, Europe is facing a hard winter unless an energy miracle appears. The market…
that's the name of the game =) buckle up, kiddo! we're in for a fun ride ;)
A similar thing happened at Netflix in 2011. My coworker kept buying options and I stopped. His stock grew to $34M. Mine recovered to six figures. If you can buy more, and you have confidence in the company, that’s what I would do.
Are you in Europe or the States? The two areas have vastly different economic outlooks. The outlook in the US can best be described as "uncertain". Valuations are down because the market doesn't like uncertainty, but it doesn't necessarily translate into a future recession -- many of the economic indicators in the US are very positive. OTOH, Europe is facing a hard winter unless an energy miracle appears. The market…
because those are the only 2 places in the world people could possibly be
Sorry that this happened. You're not alone feeling this way. I have lost about 95% of my liquid net worth this year, due to hubris, basically. The first half of 2022 for me was waking up every morning and feeling like puking a little as I get more under water, closer to that margin call, plunging through my stops. After almost a year of this, I have found a perspective that is helpful for me and may be helpful for yo…
Earlier quoted context omitted.
Cash the side line has been a great allocation for this whole year. As the mantra goes, don’t fight the fed.
The problem is getting out before things drop, and getting back in when the drop is "over": * https://awealthofcommonsense.com/2018/10/the-psychology-of-s... By sitting in cash you're also losing money through inflation: * https://ofdollarsanddata.com/the-cost-of-waiting/ At the end of the day you should always be invested, and if you're worried about market undulations then you should own some bonds. And besides red…
People tout the "cash loses to inflation" mantra as an absolute - they forget that in large market downturns, cash availability compresses while assets become in greatly less demand. So cash being available when everyone desperately needs it, but few have it, gives cash a value explodes on a opportunity basis for a window of time.
From May to September as tech indexes got cheaper I began buying them up in my rollover IRA. Two and a half weeks ago I started loading up on tech indexes with my spare liquid assets - I am down about 2.3% on that right now.
I still have some spare liquid assets, but it's easily possible the market can go down more. IYW is down over 35% YTD, IGV is down 34.71% YTD. Then again, if conditions are rosy, you're not going to get to buy Google, Salesforce etc. at such discounts off their highs.
The price of tech stocks has been too high for me for a long time, so I have had a lot of cash. The past two and a half weeks I piled most of my spare liquid cash into the market. I still have a little bit more I can put in, but more than that and I start tapping into my rainy day fund. Any how, I don't think I would buy more on a small dip at this point, it would have to be a bigger dip for me to buy more tech indexes now.
I don't even like buying stocks, but it's hard to resist buying the tech stocks at such a discount off their peak at the end of last year.
Otherwise, you don't need to look at the value of your options.