Lost $7000 today in ONE DAY!

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Alex GR
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Lost $7000 today in ONE DAY!

Post by Alex GR » Thu Aug 17, 2017 8:39 pm

Hi everyone,
I lost $7000 today in one day. My portfolio is below.
Ironically, I've just returned from a store where I was arguing with a cashier over 0.50 cents! Got home and saw that the portfolio went down by $7k... :oops:
Should I change the allocation if this kind of downswing bothers me? :confused
The portfolio is 72/28 with 55% U.S. Stock, 28% U.S. Bond and 17% International Stock.

VOO Vanguard 500 Index Fund 32%
VOE Vanguard Mid-Cap Value ETF 5%
VBR Vanguard Small-Cap Value ETF 13%
POGRX PRIMECAP Odyssey Growth Fund 5%
BIV Vanguard Intermediate-Term Bond ETF 19%
PONDX PIMCO Income Fund Class D 9%
VXUS Vanguard Total International Stock ETF International 12%
VWO Vanguard FTSE Emerging Markets ETF International 2%
SFVLX Seafarer Overseas Value Fund International 3%

centrifuge41
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Re: Lost $7000 today in ONE DAY!

Post by centrifuge41 » Thu Aug 17, 2017 8:41 pm

Sweet, time to get more equities! :D

Silverado
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Re: Lost $7000 today in ONE DAY!

Post by Silverado » Thu Aug 17, 2017 8:43 pm

Congrats! You have built a decent portfolio to have the paper value drop that much in a single,day.

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Cyclesafe
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Re: Lost $7000 today in ONE DAY!

Post by Cyclesafe » Thu Aug 17, 2017 8:43 pm

Nothing changed. You didn't lose $7000. You have the same number of shares now that you did this morning. Get a grip.

Dottie57
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Re: Lost $7000 today in ONE DAY!

Post by Dottie57 » Thu Aug 17, 2017 8:44 pm

If you believed in your allocation yesterday, you should believe in it today. Stay the course.

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whodidntante
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Re: Lost $7000 today in ONE DAY!

Post by whodidntante » Thu Aug 17, 2017 8:45 pm

As a portfolio grows, asset allocation and diversification become more important.

Bacchus01
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Re: Lost $7000 today in ONE DAY!

Post by Bacchus01 » Thu Aug 17, 2017 8:47 pm

I wish it was only that. I'm not looking, but guessing closer to $40K

But, if it stays down tomorrow I'll TLH. Then in 20 years I'll forget about it.

Jack FFR1846
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Re: Lost $7000 today in ONE DAY!

Post by Jack FFR1846 » Thu Aug 17, 2017 8:48 pm

So my portfolio's down about $14k but I'm at 50/50 and you're at 80/20 so I'll guess you have what? $700,000 invested?
Last edited by Jack FFR1846 on Thu Aug 17, 2017 8:49 pm, edited 1 time in total.
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reimann
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Re: Lost $7000 today in ONE DAY!

Post by reimann » Thu Aug 17, 2017 8:48 pm

Ha! I lost >$30K! I bet others here lost a lot more!

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Re: Lost $7000 today in ONE DAY!

Post by pkcrafter » Thu Aug 17, 2017 8:54 pm

What, did something happen?

Paul
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indexonlyplease
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Re: Lost $7000 today in ONE DAY!

Post by indexonlyplease » Thu Aug 17, 2017 8:54 pm

I wish I did not read this post. I had no idea the market went down. Anyway I am to lazy to check my portfolio. I should of bought more TSM today.

The Wizard
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Re: Lost $7000 today in ONE DAY!

Post by The Wizard » Thu Aug 17, 2017 8:57 pm

pkcrafter wrote:
Thu Aug 17, 2017 8:54 pm
What, did something happen?

Paul
Yes. Seems a bunch of investors went bust...
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delamer
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Re: Lost $7000 today in ONE DAY!

Post by delamer » Thu Aug 17, 2017 8:58 pm

Is there some level of loss that you'd be OK experiencing? What percentage value loss did you have?

avalpert
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Re: Lost $7000 today in ONE DAY!

Post by avalpert » Thu Aug 17, 2017 9:00 pm

Cyclesafe wrote:
Thu Aug 17, 2017 8:43 pm
Nothing changed. You didn't lose $7000. You have the same number of shares now that you did this morning. Get a grip.
No, he did lose $7000 today - the shares are worth what the market says they are worth, beyond that you can't even say they are worth the paper they are printed on anymore.

I lost a lot more than that today, doesn't bother me to consider action.

OP - I would say yes, if this type of day bothers you you might need to consider a less equity-heavy allocation. This wasn't like an unusually large drop, you will see more like it.

LarryAllen
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Re: Lost $7000 today in ONE DAY!

Post by LarryAllen » Thu Aug 17, 2017 9:06 pm

A lot of people on here had their portfolios go down significantly more than $7k today. No biggie. Hopefully it goes back up before I retire and actually need the dough.

J295
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Re: Lost $7000 today in ONE DAY!

Post by J295 » Thu Aug 17, 2017 9:07 pm

You ask ...
Should I change the allocation if this kind of downswing bothers me
Good question that of course only you can decide. In my opinion, many factors go into this determination, and being bothered by drops is one but not the deciding factor. For example, we have 50% of publicly traded investments in equities, and we have decided we can tolerate a 50% drop in equities (so, 25% total portfolio loss assuming other 50% is stagnant). If that drop occurs in a 6 or 12 month period we will be "bothered" but even knowing that fact we aren't willing to change our allocation.

We ended up with five simple sentences for our Investment Policy Statement, but it took some significant time, effort, and introspection to land on something that fits us well.

Best of luck.

deltaneutral83
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Re: Lost $7000 today in ONE DAY!

Post by deltaneutral83 » Thu Aug 17, 2017 9:08 pm

OP, I'm going to guess you weren't around in the fall of 2008. The 1.5% move today would be small potatos next to the daily 5-6% declines in the S&P. It seems like yesterday. Your $7k to the downside today would have frequently experienced $25k losses then.

Iliketoridemybike
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Re: Lost $7000 today in ONE DAY!

Post by Iliketoridemybike » Thu Aug 17, 2017 9:09 pm

I lost $19,000 and I am 50/50. Yawn.

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Re: Lost $7000 today in ONE DAY!

Post by triceratop » Thu Aug 17, 2017 9:10 pm

I lost much less, a bit more than $800 today; I would wager it's in the top 10 biggest loss days for me, in absolute terms. Of course, this will repeatedly occur to all of us over the coming decades The loss didn't bother me in the least.

If a 1-2% loss in a single day bothers you, your asset allocation may be incorrect for your risk tolerance.
"To play the stock market is to play musical chairs under the chord progression of a bid-ask spread."

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arcticpineapplecorp.
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Re: Lost $7000 today in ONE DAY!

Post by arcticpineapplecorp. » Thu Aug 17, 2017 9:12 pm

avalpert wrote:
Thu Aug 17, 2017 9:00 pm
Cyclesafe wrote:
Thu Aug 17, 2017 8:43 pm
Nothing changed. You didn't lose $7000. You have the same number of shares now that you did this morning. Get a grip.
No, he did lose $7000 today - the shares are worth what the market says they are worth, beyond that you can't even say they are worth the paper they are printed on anymore.
I understand what you're saying philosophically but practically speaking he didn't really lose money because he had no money to lose. He had shares only. They have value, less than yesterday. Could be even less tomorrow, next year, next decade. Or could be worth more in the future. No one knows. But the true value isn't determined unless, and until he sells. Until then he hasn't lost anything (or made anything). The value of his account doesn't tell him what he has. It tells him what he would have if he sells today. If it's less than he originally paid, and he sells, he created a loss. If he doesn't, he hasn't. You'd agree that someone can't claim a loss on their tax return until they actually sell the stock for less than they paid for it originally, right? So how can he have lost anything if he hasn't sold yet?
"Invest we must." -- Jack Bogle | “The purpose of investing is not to simply optimise returns and make yourself rich. The purpose is not to die poor.” -- William Bernstein

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Re: Lost $7000 today in ONE DAY!

Post by oldcomputerguy » Thu Aug 17, 2017 9:14 pm

Iliketoridemybike wrote:
Thu Aug 17, 2017 9:09 pm
I lost $19,000 and I am 50/50. Yawn.
+1 on the "yawn". (Oh, wait, it's after my bedtime. Never mind.)
It’s taken me a lot of years, but I’ve come around to this: If you’re dumb, surround yourself with smart people. And if you’re smart, surround yourself with smart people who disagree with you.

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Rob5TCP
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Re: Lost $7000 today in ONE DAY!

Post by Rob5TCP » Thu Aug 17, 2017 9:16 pm

Alex GR wrote:
Thu Aug 17, 2017 8:39 pm
Hi everyone,
I lost $7000 today in one day. My portfolio is below.
Ironically, I've just returned from a store where I was arguing with a cashier over 0.50 cents! Got home and saw that the portfolio went down by $7k... :oops:
Should I change the allocation if this kind of downswing bothers me? :confused
The portfolio is 72/28 with 55% U.S. Stock, 28% U.S. Bond and 17% International Stock.

VOO Vanguard 500 Index Fund 32%
VOE Vanguard Mid-Cap Value ETF 5%
VBR Vanguard Small-Cap Value ETF 13%
POGRX PRIMECAP Odyssey Growth Fund 5%
BIV Vanguard Intermediate-Term Bond ETF 19%
PONDX PIMCO Income Fund Class D 9%
VXUS Vanguard Total International Stock ETF International 12%
VWO Vanguard FTSE Emerging Markets ETF International 2%
SFVLX Seafarer Overseas Value Fund International 3%

As mentioned above, if a $7k loss is causing lost sleep; what will happen when the day comes and you have $50,000 or $100,000 loss (or even more).
You need to find what level you are comfortable to withstand the next inevitable bear market. Adjust your risk levels so you can ride out the next bear market (when it comes - which it inevitability will)

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FIREchief
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Re: Lost $7000 today in ONE DAY!

Post by FIREchief » Thu Aug 17, 2017 9:19 pm

Isn't this more like "lost and found?" If the money shows up tomorrow, or next week or next month; has anybody really lost anything? :confused
I am not a lawyer, accountant or financial advisor. Any advice or suggestions that I may provide shall be considered for entertainment purposes only.

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oldzey
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Re: Lost $7000 today in ONE DAY!

Post by oldzey » Thu Aug 17, 2017 9:22 pm

It's only a loss on paper... until you sell.
"The broker said the stock was 'poised to move.' Silly me, I thought he meant up." ― Randy Thurman

The Wizard
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Re: Lost $7000 today in ONE DAY!

Post by The Wizard » Thu Aug 17, 2017 9:25 pm

Alex GR wrote:
Thu Aug 17, 2017 8:39 pm

...Should I change the allocation if this kind of downswing bothers me? :confused
Perhaps.
But no matter what your stock allocation was, within reason, you would have seen SOME overall downswing today.
It's quite unreasonable to think that a $7000 downswing is too much but a $3000 downswing would be perfectly ok.
The important thing is to learn to accept that these things happen normally.

If you do decide to lower your stock allocation, perhaps drop it by 5%, from 72% to 67%.
And the best time to make this change to a less volatile AA is when the market indices are pushing record highs once again at 3:30 pm...
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runner3081
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Re: Lost $7000 today in ONE DAY!

Post by runner3081 » Thu Aug 17, 2017 9:32 pm

Wow, cool. I don't really follow the market (no need to when indexing and DCA'ing every month automatically).

Now that I see this, will watch a bit more. Might be time to make a few "sale" purchases on funds.
Last edited by runner3081 on Thu Aug 17, 2017 9:33 pm, edited 1 time in total.

hightower
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Re: Lost $7000 today in ONE DAY!

Post by hightower » Thu Aug 17, 2017 9:33 pm

Cyclesafe wrote:
Thu Aug 17, 2017 8:43 pm
Nothing changed. You didn't lose $7000. You have the same number of shares now that you did this morning. Get a grip.
I'm seriously cracking up right now! "Get a grip". Lolol

James2
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Re: Lost $7000 today in ONE DAY!

Post by James2 » Thu Aug 17, 2017 9:35 pm

Isn't the best idea to ignore the market and do something else? Besides, as someone else said, you've only lost it if you sold and made the loss "real". Otherwise it's only on paper.

Of course there will be ups and downs in the market, it's normal. And of course I ended up looking at ours after seeing this post. Oh well, there's always tomorrow :sharebeer

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Pajamas
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Re: Lost $7000 today in ONE DAY!

Post by Pajamas » Thu Aug 17, 2017 9:38 pm

Today was not a really bad day. If it really upset you, how will $70k loss in one day make you feel?

MNGopher
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Re: Lost $7000 today in ONE DAY!

Post by MNGopher » Thu Aug 17, 2017 9:40 pm

It's true that loss aversion affects people much more than an equivalent gain.

youdiditr2
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Re: Lost $7000 today in ONE DAY!

Post by youdiditr2 » Thu Aug 17, 2017 9:43 pm

I'm down $20k tomorrow. Oh well. I bought some fried chicken to ease my pain :beer

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badbreath
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Re: Lost $7000 today in ONE DAY!

Post by badbreath » Thu Aug 17, 2017 9:44 pm

Yes my cost of shares went down today but a fluctuation of $30-$40 k per quarter to me is not odd, it happens. As someone mentioned the 08 crash, I lived thru that and it was a more like 50% cut to me but I just keep on investing and it worked out well.
“While money can’t buy happiness, it certainly lets you choose your own form of misery.” Groucho Marx

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Re: Lost $7000 today in ONE DAY!

Post by pkcrafter » Thu Aug 17, 2017 9:45 pm

avalpert wrote:
Thu Aug 17, 2017 9:00 pm
Cyclesafe wrote:
Thu Aug 17, 2017 8:43 pm
Nothing changed. You didn't lose $7000. You have the same number of shares now that you did this morning. Get a grip.
No, he did lose $7000 today - the shares are worth what the market says they are worth, beyond that you can't even say they are worth the paper they are printed on anymore.

I lost a lot more than that today, doesn't bother me to consider action.

OP - I would say yes, if this type of day bothers you you might need to consider a less equity-heavy allocation. This wasn't like an unusually large drop, you will see more like it.
I understand your comment on the paper loss, but looking at it a little differently may help some unseasoned investors to continue to hold. We can say Alex did not lose anything, his shares are all still there. What he is experiencing is normal price volatility and investors have to get used to dealing with it. Another way to say this is he really doesn't lose anything unless he sells. If he does that he fully realizes the loss.

Alex, if you feel some panic, then you probably should reduce your equity allocation. What will you do if the drop is 20X today's drop--and it will happen sometime.

How long have you held your current portfolio?

Here's a link to an article on understanding volatility...

https://finpage.blog/author/pkcrafter/

Paul
When times are good, investors tend to forget about risk and focus on opportunity. When times are bad, investors tend to forget about opportunity and focus on risk.

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Re: Lost $7000 today in ONE DAY!

Post by AlohaJoe » Thu Aug 17, 2017 9:52 pm

Alex GR wrote:
Thu Aug 17, 2017 8:39 pm
I lost $7000 today in one day.
The most I've lost in one day in the past 12 months was $124,709 on June 9th, 2017. I don't even remember that. I don't check every day and the only reason I even know if because your post made me go look at the spreadsheet.
Should I change the allocation if this kind of downswing bothers me? :confused
[OT comment removed by admin LadyGeek] We're not talking about someone who thought they could handle 80% stocks and then the market crashed and it turned out they were wrong. This was a totally normal market movement, the kind that happens dozens of times every year.

If you can't handle this you will make bad investing decisions your entire life and are much more likely to be unable to retire in the manner you expect.
Last edited by AlohaJoe on Thu Aug 17, 2017 9:54 pm, edited 1 time in total.

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Re: Lost $7000 today in ONE DAY!

Post by AlohaJoe » Thu Aug 17, 2017 9:53 pm

pkcrafter wrote:
Thu Aug 17, 2017 9:45 pm
Alex, if you feel some panic, then you probably should reduce your equity allocation. What will you do if the drop is 20X today's drop--and it will happen sometime.
I disagree. Reducing his equity allocation will never protect him from a $7,000 daily loss. Even if he is 100% bonds, you can still have a $7,000 daily loss. And the $7,000 loss bothers him. The only answer is to

a) not check daily
b) check daily but not freak out over incredibly minor, super-common market gyrations

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Jerry55
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Re: Lost $7000 today in ONE DAY!

Post by Jerry55 » Thu Aug 17, 2017 9:59 pm

My TSP is 50% of my holdings, and it went down $5,200.00 (ya don't lose anything unless you cash it out) 50% C Fund, 25/25 S and International funds.

My Wellesley (ROTH IRA), Wellington & my Dodge & Cox International went down just over $3,100.00

I'm retired since 2012, 62 yrs of age and am not worried. Why are you worried ??? Next time, it'll be UP $7,000.00. It happens. Enjoy the ride.

However, if you're worried so much, maybe find something else that will help you sleep better at night.
Retired CSRS on 12/19/2012 @ age 57 w/39 years | Good Bye Tension, Hello Pension !!!

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saltycaper
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Re: Lost $7000 today in ONE DAY!

Post by saltycaper » Thu Aug 17, 2017 10:05 pm

What's with all the "paper loss" and "you don't really lose until you sell" talk? Of course it's a loss regardless of whether or not you sell. That the number of shares owned hasn't changed doesn't mean there is no loss. If the value of the portfolio is $7K less today than yesterday, you've lost $7K. Pretty straightforward.
Alex GR wrote:
Thu Aug 17, 2017 8:39 pm
Hi everyone,
I lost $7000 today in one day. My portfolio is below.
Ironically, I've just returned from a store where I was arguing with a cashier over 0.50 cents! Got home and saw that the portfolio went down by $7k... :oops:
Should I change the allocation if this kind of downswing bothers me?
I didn't read your post history, but why does it bother you all of a sudden? Today wasn't unusual at all. There will be many more days like today and many worse days. Losing a lot of money is part of the game. In the past, if you've held a broadly diversified portfolio, you've gained it back in time. The future offers no guarantees. Changing allocation may be appropriate, but changing expectations also should be considered.
Quod vitae sectabor iter?

cutterinnj
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Re: Lost $7000 today in ONE DAY!

Post by cutterinnj » Thu Aug 17, 2017 10:11 pm

A related question

Is there a way to buy more funds (vtsax, for instance) at vanguard WITHOUT looking at the balance?
It would psychologically help to not see it.

I know it's down.
I know I should buy.
But I really don't want to see how much it went down.

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Re: Lost $7000 today in ONE DAY!

Post by jbolden1517 » Thu Aug 17, 2017 10:20 pm

cutterinnj wrote:
Thu Aug 17, 2017 10:11 pm
Is there a way to buy more funds (vtsax, for instance) at vanguard WITHOUT looking at the balance?
It would psychologically help to not see it.

I know it's down.
I know I should buy.
But I really don't want to see how much it went down.
Do your trading by phone. VBS offers phone trades.

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Strayshot
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Re: Lost $7000 today in ONE DAY!

Post by Strayshot » Thu Aug 17, 2017 10:21 pm

Would you feel better if it took 2 days? What about a week?

What was lost? Did you sell?

I saw a number I keep track of change by about 30K today. Maybe it will change again tomorrow?

My biggest fiscal loss today was on a bottle of cab and a smoked pork chop :sharebeer my stomach and mental health registered a gain though, so I am good! :moneybag

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William4u
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Re: Lost $7000 today in ONE DAY!

Post by William4u » Thu Aug 17, 2017 10:21 pm

Ignore the noise and follow your IPS. Your allocation is reasonable. Stay the course. A little volatility can be good in the long term.

1. Write an IPS.
2. Stick to it.

viewtopic.php?t=61915
https://www.bogleheads.org/wiki/Investm ... _statement

avalpert
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Re: Lost $7000 today in ONE DAY!

Post by avalpert » Thu Aug 17, 2017 10:23 pm

pkcrafter wrote:
Thu Aug 17, 2017 9:45 pm
avalpert wrote:
Thu Aug 17, 2017 9:00 pm
Cyclesafe wrote:
Thu Aug 17, 2017 8:43 pm
Nothing changed. You didn't lose $7000. You have the same number of shares now that you did this morning. Get a grip.
No, he did lose $7000 today - the shares are worth what the market says they are worth, beyond that you can't even say they are worth the paper they are printed on anymore.

I lost a lot more than that today, doesn't bother me to consider action.

OP - I would say yes, if this type of day bothers you you might need to consider a less equity-heavy allocation. This wasn't like an unusually large drop, you will see more like it.
I understand your comment on the paper loss, but looking at it a little differently may help some unseasoned investors to continue to hold. We can say Alex did not lose anything, his shares are all still there. What he is experiencing is normal price volatility and investors have to get used to dealing with it. Another way to say this is he really doesn't lose anything unless he sells.
And I understand that. I think it is possible that ignoring the value can help some psychology - but I also think it can hurt. It can lead people to take more risk than is prudent because they don't think the downside losses are actual losses, it can lead people to hold on to mistakes for too long because 'it isn't a loss if they don't sell'.

Personally, for the unseasoned investor who is apt to react to short term movement I think you are better off teaching them to not look at daily movements in their portfolio than to teach them to make believe that 'paper losses' aren't real.

avalpert
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Re: Lost $7000 today in ONE DAY!

Post by avalpert » Thu Aug 17, 2017 10:27 pm

arcticpineapplecorp. wrote:
Thu Aug 17, 2017 9:12 pm
avalpert wrote:
Thu Aug 17, 2017 9:00 pm
Cyclesafe wrote:
Thu Aug 17, 2017 8:43 pm
Nothing changed. You didn't lose $7000. You have the same number of shares now that you did this morning. Get a grip.
No, he did lose $7000 today - the shares are worth what the market says they are worth, beyond that you can't even say they are worth the paper they are printed on anymore.
I understand what you're saying philosophically but practically speaking he didn't really lose money because he had no money to lose.
Does that mean the net worth of his portfolio is 0? Is his safe withdrawal rate based on the value today or the value he bought at?
The true value today is fairly well known for publicly traded stocks and precisely known for mutual funds - it is determined, whether he sells at that value or not. The value that it will be in the future may not be determined, but we make many decisions based on today's value.

You'd agree that someone can't claim a loss on their tax return until they actually sell the stock for less than they paid for it originally, right? So how can he have lost anything if he hasn't sold yet?
Tax accounting is important for managing tax expenses - but that is it.

ccieemeritus
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Re: Lost $7000 today in ONE DAY!

Post by ccieemeritus » Thu Aug 17, 2017 10:35 pm

How much did you gain or lose since August 1st?

How much did you gain or lose since January 1st?

There have been 30+ record high closes for the DJIA so far this year. Naturally there will be days when it goes down. But you are not investing for tomorrow. You are investing for retirement. How far away is that? Do you expect the market to be higher or lower on that date?

That said, your personal risk tolerance (or lack thereof) might warrant decreasing your stock allocation. Better to adjust (sell) now near a high than during a 2008-like valley. We don't want you buying high and selling low during the next 10% correction or 20%+ bear market.

But before making an adjustment, think about your returns over the past month, past year, and past 5 years. Then think about how far away retirement is.

rick2427
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Re: Lost $7000 today in ONE DAY!

Post by rick2427 » Thu Aug 17, 2017 10:36 pm

My portfolio went down <0.6%> today (AA=50/30/20) where as S&P500 went down <1.54%> ..... I don't feel bad.
If I look at how much my portfolio went down .....ooops I feel like throwing up.

So I only look at percentage change Up or down Vs the market. Helps me keep things in perspective.

Cheers.

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Re: Lost $7000 today in ONE DAY!

Post by HomerJ » Thu Aug 17, 2017 10:38 pm

Alex GR wrote:
Thu Aug 17, 2017 8:39 pm
Hi everyone,
I lost $7000 today in one day. My portfolio is below.
Ironically, I've just returned from a store where I was arguing with a cashier over 0.50 cents! Got home and saw that the portfolio went down by $7k... :oops:
Should I change the allocation if this kind of downswing bothers me? :confused
The portfolio is 72/28 with 55% U.S. Stock, 28% U.S. Bond and 17% International Stock.
How much did your portfolio go up in the past 6 months? $90,000?

Are you seriously upset about the market going down 1.5%? This will happen multiple times in your life, hundreds of times.

It will go down 15% a dozen times in your lifetime. Maybe even tomorrow. No one knows.

It will probably drop 50% at least once or twice in your lifetime. Maybe even tomorrow. No one knows.

You should not have a single cent in the stock market if you cannot internalize this. It will go up AND down. So far, over the long run, it goes up. But 1.5% drops are normal and common. You need to be prepared for the bigger drops too.

Seriously. You WILL see your portfolio drop $100,000 sometime in the next 10 years. Maybe even tomorrow. You better get this in your head now.

It is what happens when you have a lot of money invested in the stock market. Gaining $150,000 in a year is also what happens when you have a lot of money invested in the stock market. Both events are normal and common.

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EyeYield
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Re: Lost $7000 today in ONE DAY!

Post by EyeYield » Thu Aug 17, 2017 10:39 pm

Some perspective. The market has gone up about 120% over the past eight years. Today the S&P 500 was down 1.5%.

Some further perspective. Almost 30 years ago I woke up to find my portfolio down 23%. That was my first exercise in portfolio discipline and since that time I've gotten a lot more exercise.
So enjoy the workout and feel the burn, it will make you stronger in the long run.
"The stock market is a giant distraction from the business of investing." - Jack Bogle

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Leif
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Re: Lost $7000 today in ONE DAY!

Post by Leif » Thu Aug 17, 2017 10:39 pm

This is a very minor drop. If it bothers you, and I mean lose sleep bother, then you should change your asset allocation and sell some stocks. Better now then when the market is down 50%. I would sell the <= 5% funds.
Last edited by Leif on Thu Aug 17, 2017 10:46 pm, edited 1 time in total.
Investors should diversify across many asset-classes so that whatever happens, we will not have all our investments in underperforming asset classes and thereby fail to meet our goals-Taylor Larimore

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oldzey
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Re: Lost $7000 today in ONE DAY!

Post by oldzey » Thu Aug 17, 2017 10:45 pm

oldzey wrote:
Thu Aug 17, 2017 9:22 pm
It's only a loss on paper... until you sell.
I'll also add this quote:

“If one isn't ready to lose capital, then one isn't ready to invest. They go hand-in-hand: Losses and investing. One cannot avoid losses if they invest.” ― Livesoft

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"The broker said the stock was 'poised to move.' Silly me, I thought he meant up." ― Randy Thurman

Fallible
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Re: Lost $7000 today in ONE DAY!

Post by Fallible » Thu Aug 17, 2017 10:56 pm

Alex GR wrote:
Thu Aug 17, 2017 8:39 pm
...I lost $7000 today in one day. ... Should I change the allocation if this kind of downswing bothers me? :confused
The portfolio is 72/28 with 55% U.S. Stock, 28% U.S. Bond and 17% International Stock. ...
What did you base your allocation on? In setting it, did you ask yourself how much you could afford to lose before you need the money? Did you allocate based on need, ability, and willingness to take risk? Do you have a written Investment Policy Statement that describes your investments and your reasons for them? If not, check the wiki, beginning with "Getting Started." https://www.bogleheads.org/wiki/Getting_started
Bogleheads® wiki | Investing Advice Inspired by Jack Bogle

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