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Ask HN: How to deal with markets down turn? Feeling down

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Re: Ask HN: How to deal with markets down turn? Feeling down

#201

Post by bluGill »

jmathai wrote: post #69
bluGill wrote: post #60

Earlier quoted context omitted.

Unless you are aiming for the C suite you should NEVER have any company stock as that is putting too many eggs in one basket. If you have all your eggs in one basket you better watch that basket on a level that only C suite people have access to. (I'm not sure if they do,but at least they can unlike those below)

In this case, you don’t have much choice if company stock makes up a large portion of your income. You can sell immediately but the money you receive from that transaction is much less - it’s lowered income even if you immediately diversify.

I.value company stock offers at zero. If I get it and can sell it is a nice bonus. I've seen too many burned by then. The only reason i'm not one is I knew this could happen so I didn't count one things. (They have worked out once in a.while too, but until the money is in my bank account I don't count it)

Re: Ask HN: How to deal with markets down turn? Feeling down

#203

Post by RickJWagner »

jeremyt wrote: post #81
thehappypm wrote: post #37

Earlier quoted context omitted.

What was your motivation to invest in such a way that 95% loss was even possible?

To make money, why else? Look folks, this wasn't my retirement money, it was money I didn't particularly need and had no idea what to do with. It always worked for me before. My investing history is a long string of huge successes beginning in 2014. I've always invested in companies I believed in and that had solid fundamentals. It appears the market doesn't give a shit about company fundamentals right now. Most smal…

You have learned a very valuable life lesson.

The path you took was not an advisable one. The wins of the past decade were way past normal. The game seemed too easy.

Now that you have the experience, go read bogleheads.org and begin to learn a more sustainable path to wealth. (It's still very much attainable, especially for the typical HN reader.)

Good luck.

Re: Ask HN: How to deal with markets down turn? Feeling down

#204

Post by bluGill »

O__________O wrote: post #114
throw0101c wrote: post #95

Earlier quoted context omitted.

> Fidelity did a survey [citation needed] This is an urban legend from what I recall. (But not touching your investments is generally a good idea.)

Citation: https://www.businessinsider.com/forgetful-investors-performe...

Intersting discussion. I found a citation years ago when I last shared the story, but I guess it was false.

Re: Ask HN: How to deal with markets down turn? Feeling down

#205

Post by [deleted] »

orzig wrote: post #58

All this is good advice, but I haven't seen any prospective on personal budgets: - Remember that money exists to be spent on useful things, it's not a video game score - Understand your monthly spending and monthly take-home. If you're in a role that grants equity, I bet you've got a healthy surplus. If not, I bet you could make some lifestyle changes to achieve that. - Take a moment to really accept that you are fin…

[deleted]

Re: Ask HN: How to deal with markets down turn? Feeling down

#206

Post by voisin »

Mikeb85 wrote: post #166
jeremyt wrote: post #81

Earlier quoted context omitted.

To make money, why else? Look folks, this wasn't my retirement money, it was money I didn't particularly need and had no idea what to do with. It always worked for me before. My investing history is a long string of huge successes beginning in 2014. I've always invested in companies I believed in and that had solid fundamentals. It appears the market doesn't give a shit about company fundamentals right now. Most smal…

> It appears the market doesn't give a shit about company fundamentals right now. Fundamentals have never mattered all that much. Stock prices are based on demand for the stock itself, which is largely dependent on economic conditions. When the Fed was increasing the money supply a lot of that excess pumped up stocks because there was nowhere else for it to go, now that money is drying up causing the market correctio…

“In the short term the market is a voting machine. In the long term it is a weighing machine” - Buffett.

Fundamentals matter over long periods, but in short time spans it is, as you say, about demand for the stock which can have nothing to do with fundamentals.

Re: Ask HN: How to deal with markets down turn? Feeling down

#207

Post by voisin »

wholinator2 wrote: post #189
omreaderhn wrote: post #159

Earlier quoted context omitted.

This mentality worked for the past 40 years but it won't work for the next 40 years.

Why

Interest rates have been on the decline for this period resulting in everything going up (the everything bubble). Rates now have to go up because inflation is running rampant, and so we need to see valuations (as a whole) reverse.

Re: Ask HN: How to deal with markets down turn? Feeling down

#208

Post by voisin »

esalman wrote: post #140
throw0101c wrote: post #19

> 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…

Any advice for those who are retiring?

Don’t. Wait for a few more years to see how inflation and interest rates and your portfolio goes. Retirement now is a massive gamble as major variables affecting your entire retirement plan are a complete lottery right now.

Re: Ask HN: How to deal with markets down turn? Feeling down

#210

Post by devoutsalsa »

You crying over money you never had. I’ve been on this ride a few times. I’ve learned that it’s not real money until you can (and do) cash it out. It’s intoxicating to think about your imminent ability to retire, but the mistake is allowing yourself to become intoxicated in the first place.
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