Ok fellow bogleheads, was the correction scary or nothing?

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JW-Retired
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Re: Ok fellow bogleheads, was the correction scary or nothing?

Post by JW-Retired » Fri Mar 09, 2018 9:55 am

Not scary and better than nothing.

We had reinvested our RMD in January, but then missed the bottom for tax loss harvesting. Finally did the TLH this last Monday,
which was still pretty beneficial.:)
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Re: Ok fellow bogleheads, was the correction scary or nothing?

Post by Pigeye Brewster » Fri Mar 09, 2018 10:05 am

CantPassAgain wrote:
Thu Mar 08, 2018 7:25 pm
Why is everyone comparing February's drop with 2008? What about February 2016, September 2015, August 2011, and July 2010? Those were all worse than what happened a few weeks ago. Are people's memories that short? All you gotta do is click on a chart of the S&P 500 and look at it.
Drawdowns in the S&P 500 > 10% since March 2009 market bottom:

4/23/2010 to 7/2/2010 -16.0%
7/7/2011 to 8/8/2011 -17.3%
7/20/2015 to 8/25/2015 -12.3%
11/3/2015 to 2/11/2016 -13.3%
1/26/2018 to 2/8/2018 -10.2%

Also > 5% and < 10%:
6/12/2009 to 7/10/2009 -7.1%
10/19/2009 to 10/30/2009 -5.6%
1/19/2010 to 2/8/2010 -8.1%
8/9/2010 to 8/26/2010 -7.1%
2/18/2011 to 3/16/2011 -6.4%
9/16/2011 to 10/3/2011 -9.6%
11/8/2011 to 11/25/2011 -9.2%
4/2/2012 to 6/1/2012 -9.9%
10/4/2012 to 11/15/2012 -7.4%
9/18/2014 to 10/15/2014 -7.4%

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Re: Ok fellow bogleheads, was the correction scary or nothing?

Post by BrandonBogle » Fri Mar 09, 2018 10:25 am

I will say that runup caused me to hit a rebalancing band for the first time, since my contributions only 401k weren’t enough to keep my AA in check. So I shifted a large $$ amount to bonds in late January before I left for a trip. By the time I got back, things had recovered some (before falling again), so I didn’t even get to bask in how my rebalancing saved me some $$. Oh well.

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Re: Ok fellow boggelheads, was the correction earlier this year scary?

Post by at7000ft » Fri Mar 09, 2018 11:29 am

fgtayl01 wrote:
Wed Mar 07, 2018 3:00 pm
There wasn't an exhaustive selloff so it's hard to get excited either way this this one. But it was a chance to gauge your comfort with your risk tolerance and adjust your portfolio to feel comfortable.

You'll be more concerned when a downturn is sustained over time. Just remember your time horizon when it happens.
Agree, it was a great AA test case. I will probably retire this year at 67 and was at 60/40 in Vanguard IRAs. After the second day of over 1000 pt loss I realized I am really a 40/60. Moved over to VSCGX LifeStrategy based on good input from this group.

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Re: Ok fellow bogleheads, was the correction scary or nothing?

Post by Dulocracy » Fri Mar 09, 2018 12:14 pm

It was not scary. It happened. It will happen again. I am continuing to max my retirement/tax advantaged opportunities.
I'm not a financial professional. Post is info only & not legal advice. No attorney-client relationship exists with reader. Scrutinize my ideas as if you spoke with a guy at a bar. I may be wrong.

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Re: Ok fellow bogleheads, was the correction scary or nothing?

Post by Dottie57 » Fri Mar 09, 2018 12:19 pm

Not a big deal. It moved my totals by about 2%. Not enough to rebalance.

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Re: Ok fellow bogleheads, was the correction scary or nothing?

Post by blackcat allie » Fri Mar 09, 2018 1:26 pm

Grateful for this moment of reflection and processing. I'm very new to all this. I did have a little extra resources to put to work for total stock index & followed the "free fall" thread very closely. Though it was a minority, there were a few "contrarian" posts from people buying in low at dips ( ?2008 perhaps), and how it kept dipping from there, how painful. It discouraged me from buying (or reallocating) all but a very nominal amount.

Do others here find the "fearful/greedy" adage very tricky? Perhaps this board already has that proper/wise quotient baked in, but a strong contingent were licking their chops with buying opportunity. Probably I will be as well, next time. (Guess it's past time to write an investment plan!) thanks again for all the good ideas
Last edited by blackcat allie on Fri Mar 09, 2018 1:45 pm, edited 1 time in total.

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Re: Ok fellow bogleheads, was the correction scary or nothing?

Post by BogleMelon » Fri Mar 09, 2018 1:30 pm

I lost money during that correction when I bought a lot of popcorn to get ready for "quality" shows on CNBC, only to find that it is nothing major and no shows!
"One of the funny things about stock market, every time one is buying another is selling, and both think they are astute" - William Feather

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Re: Ok fellow bogleheads, was the correction scary or nothing?

Post by Mako » Fri Mar 09, 2018 2:03 pm

I'm just a bit older than the OP, late 30s, and used to watch the market religiously. Lately I haven't even been on bogleheads much this year, and I had no idea until reading this thread that we had a 10% or so correction earlier this year. I think that's a good thing, the more aware I am the more I will tinker and I don't think that will ultimately be productive. I check in to my accounts quarterly to rebalance and that's that. New money has been going in automatically approximately to my normal 60-40 AA. I just figured my XIRR for the year is 5.65% and I'm not close to any rebalancing bands. Not great but not awful. I recommend paying less attention, if possible.

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Re: Ok fellow bogleheads, was the correction scary or nothing?

Post by Flymore » Fri Mar 09, 2018 2:15 pm

Is the correction over? :?:

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Re: Ok fellow bogleheads, was the correction scary or nothing?

Post by F150HD » Fri Mar 09, 2018 2:35 pm

Flymore wrote:
Fri Mar 09, 2018 2:15 pm
Is the correction over? :?:
That is my question. Some see this as a continuing bull from 2009, others do not.

Is this bull market really 9 years old?
By William Watts
Published: Mar 9, 2018 12:11 p.m. ET


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Re: Ok fellow bogleheads, was the correction scary or nothing?

Post by sixtyforty » Fri Mar 09, 2018 4:25 pm

The market has a very interesting way, insidious actually, of dulling everyone's senses.. without them ever knowing it. This volatility, which I suspect will continue, just ends up conditioning everyone. When the market eventually decides to enter a bear market, it will do so when everyone leasts expects it.
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Re: Ok fellow bogleheads, was the correction scary or nothing?

Post by nisiprius » Fri Mar 09, 2018 6:15 pm

Since I am told that volatility clustering is a recognized fact, I have no confidence that the drama is over.

So far I haven't found it to be scary.

In 2008, on vacation, I was visiting a friend, and she happened to mention something about being worried about the stock market. I said "Nah, I'm not worried, the Dow just jinking up and down in the 12,000's. I'm not getting excited by the ups and downs. I won't worry about it until it gets into the 11,000's." And she says, "Nisi, it's in the 11,000's." And I said, "Oh, well. Well, it's still not a big deal."

Image

I am not predicting anything, but I'm not ready to talk about "the correction" in the past tense.

(It's even vaguely troubling: during the Great Depression, there was a big campaign of optimism, and part of it was that people took out ads and put up billboards saying "Wasn't the Depression terrible?" with the idea that thinking about it in the past tense might make it go away).
Annual income twenty pounds, annual expenditure nineteen nineteen and six, result happiness; Annual income twenty pounds, annual expenditure twenty pounds ought and six, result misery.

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Re: Ok fellow bogleheads, was the correction scary or nothing?

Post by John151 » Fri Mar 09, 2018 10:03 pm

I’m a retiree in my seventies, with about a third of my investments in stocks. My pension covers most of my living expenses, and I have enough in bonds to see me through to the end of my days. The correction didn’t frighten me at all. My stocks could go to zero without affecting my lifestyle in the slightest. That's one of the reasons why I keep two-thirds of my savings in bonds.

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Re: Ok fellow bogleheads, was the correction scary or nothing?

Post by Dandy » Sat Mar 10, 2018 6:52 am

all sudden deep declines are scary to a point. Since you don't know "if this is the big one". It is like being in an airplane and you get a sudden drop - very scary if you aren't an experienced experienced traveler - not so for experienced pilots. That being said - I am an experienced investor but don't like it very much when the market hits an air pocket!!

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Re: Ok fellow bogelheads, was the correction scary or nothing?

Post by JoeRetire » Sat Mar 10, 2018 8:41 am

CnC wrote:
Wed Mar 07, 2018 4:02 pm
I was hoping that there was some measurement of moderate drop that could help me guage my stomach for the rollercoaster that will eventually come.

But from the sounds of the majority here, nothing means anything until you are in the throes of a major recession and have lost your job. :confused it makes estimating your risk tolerance a bit tough doesn't it?
Yup. The reality is you will not be able to know your real risk tolerance until you hit a situation where you cannot tolerate it.

For me, the correction meant nothing. But then, I did nothing special during the Great Recession either (other than continued to purchase funds while they were on sale).

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Re: Ok fellow bogleheads, was the correction scary or nothing?

Post by livesoft » Sat Mar 10, 2018 8:48 am

I guess that everyone who was "waiting for a correction" to invest are all invested now, right?
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Re: Ok fellow bogleheads, was the correction scary or nothing?

Post by nedsaid » Sat Mar 10, 2018 10:11 am

CnC wrote:
Wed Mar 07, 2018 2:53 pm
Hey guys, I know the mantra time in the market not timing, and don't react to the market fluctuations. I am not concerned about any of that.


I just an interested in how the market correction felt to fellow boggelheads here. I'm pretty young (32) and I while I have been investing for a while I got serious about it early last year.


This is the first time since I started paying attention that my accounts went down across the board. So I wanted to guage my feelings and if anything I felt relieved that the dropped a bit and seemed to level out without a major recession.

I realize that this was a correction, not a crash. But the media being what they are is acting like this was a big deal.


I guess my question is this, was this a negligible blip that no reasonable person had any reaction to? Or does the fact that I felt ok about the dip mean my asset allocation is on target with my risk tolerance?


As I said it's the first time that I have "lost" money since I started and I'm trying to get a feel for where this lies on the scale from yawn to white knuckle.
My thinking is that the recent market correction was not that big of a deal. My portfolio is getting to be fairly large so a swing of a few percentage points in the markets represent lots of money. This is normal market behavior, and while seeing your account balances go down is never pleasant, it is part of the process.

Keep in mind that the media is relentlessly negative and gives a distorted picture as to what is actually happening in the world. You have to learn to ignore a lot of this. I have been reading about the US Government going bankrupt, the death of the US Dollar, and hyper-inflation since I started my career back in 1983. Somehow, the stock market keeps going up.

Really bad things do happen in financial markets but markets eventually recover. In my lifetime, I have seen three really bad bear markets. There was 1973-74, 2000-2002, and 2008-2009. Each time the stock market dropped by more than 50%. The garden variety bear markets are drops of 20% to 30%. The stock market fluctuates but the long term trend is up.
A fool and his money are good for business.

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Re: Ok fellow bogleheads, was the correction scary or nothing?

Post by BrandonBogle » Sat Mar 10, 2018 1:52 pm

Black Cat wrote:
Fri Mar 09, 2018 1:26 pm
Grateful for this moment of reflection and processing. I'm very new to all this. I did have a little extra resources to put to work for total stock index & followed the "free fall" thread very closely. Though it was a minority, there were a few "contrarian" posts from people buying in low at dips ( ?2008 perhaps), and how it kept dipping from there, how painful. It discouraged me from buying (or reallocating) all but a very nominal amount.

Do others here find the "fearful/greedy" adage very tricky? Perhaps this board already has that proper/wise quotient baked in, but a strong contingent were licking their chops with buying opportunity. Probably I will be as well, next time. (Guess it's past time to write an investment plan!) thanks again for all the good ideas
When I thought about it, agreed with, and decided to follow Boglehead principles, I explicitly wrote in my IPS that by being an index investors, I'm explicitly saying that getting the average will meet my goals and there is nothing wrong with that. That intrinsically means that sometimes I won't get in at the very bottom and sometimes I won't get out at the very top -- I will still meet my goals and there is nothing wrong with that. It's a very liberating feeling.

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Re: Ok fellow bogleheads, was the correction scary or nothing?

Post by JW-Retired » Sat Mar 10, 2018 3:18 pm

livesoft wrote:
Sat Mar 10, 2018 8:48 am
I guess that everyone who was "waiting for a correction" to invest are all invested now, right?
That could be an illuminating thread. Please start up one for us?
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Re: Ok fellow bogleheads, was the correction scary or nothing?

Post by livesoft » Sat Mar 10, 2018 3:42 pm

JW-Retired wrote:
Sat Mar 10, 2018 3:18 pm
livesoft wrote:
Sat Mar 10, 2018 8:48 am
I guess that everyone who was "waiting for a correction" to invest are all invested now, right?
That could be an illuminating thread. Please start up one for us?
JW
I sort of did back in February:
viewtopic.php?f=1&t=240715
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Re: Ok fellow bogleheads, was the correction scary or nothing?

Post by JW-Retired » Sat Mar 10, 2018 4:05 pm

livesoft wrote:
Sat Mar 10, 2018 3:42 pm
JW-Retired wrote:
Sat Mar 10, 2018 3:18 pm
livesoft wrote:
Sat Mar 10, 2018 8:48 am
I guess that everyone who was "waiting for a correction" to invest are all invested now, right?
That could be an illuminating thread. Please start up one for us?
JW
I sort of did back in February:
viewtopic.php?f=1&t=240715
So you did. There were 48 replies with the last one Feb 10. I could find just one who said they invested some amount in the dip. Didn't say how much but he said he was still 50% cash.

I guess most are still waiting for the big one.
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Re: Ok fellow bogleheads, was the correction scary or nothing?

Post by ny_knicks » Sat Mar 10, 2018 4:21 pm

I have a friendly banter with a close friend regarding market timimg. We both received bonuses the last few weeks. I went all in w/ mine he's staying on the sidelines to time the market. It is anyone's guess who will come out ahead. He seems very confident that he won't invest when the market is at an all-time high. I guess you could have said that last January, then January before that, the January before that...and that...and that...

I am young and 100% equities. Every dollar I put in the market I would be comfortable waiting to withdraw for quite a long time. The dips don't scare me because of this. Confident over a long-term horizon it will bounce back. Not confident in my ability to time these dips so I just continue to plow money into the market when I have it. I do go back and fourth on DCA but have read enough now to be comfortable just going all in day 1.

This last one wasn't scary and I think most knew it was coming eventually. When you see red just realize those aren't realized losses. Just potential losses if you sold today. But you aren't selling today so let it ride.

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Re: Ok fellow bogleheads, was the correction scary or nothing?

Post by LeisureLee » Sat Mar 10, 2018 4:49 pm

I think it's good you're paying attention and thinking about it.

I'm amazed at how much each drop feels different than the previous ones to me.

At first I had very little money invested, so my monthly contributions were more than the drops. I thought, "No problem, I can handle this."

The next time the drops were bigger than my contributions. "Eh, I'm buying at a discount."

The next drop was more than a year of saving. "Hmm, I hope this doesn't last long."

Then I stopped working, and the drop was a year of spending lost and no work income to replace it with. No "I get to buy the dip". That made me feel like going back to work until it recovered.

Even though the percentage drops aren't that different, the changes in my life circumstances make them feel a lot different.

I guess I'm saying to expect it to get both easier and harder as you go along. Experience with prior dips helps, but the difficulty level keeps going up. Maybe when you've been retired through a few of them that stops happening. =)

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Re: Ok fellow bogleheads, was the correction scary or nothing?

Post by livesoft » Sat Mar 10, 2018 4:53 pm

LeisureLee wrote:
Sat Mar 10, 2018 4:49 pm
Then I stopped working, and the drop was a year of spending lost and no work income to replace it with. No "I get to buy the dip". That made me feel like going back to work until it recovered.
Folks who exchanged out of bond funds to buy the equity dip also avoided a 1% drop in their bond funds with the amount exchanged. So why not "I get to buy the dip"?
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Re: Ok fellow bogleheads, was the correction scary or nothing?

Post by LeisureLee » Sat Mar 10, 2018 5:12 pm

livesoft wrote:
Sat Mar 10, 2018 4:53 pm
LeisureLee wrote:
Sat Mar 10, 2018 4:49 pm
Then I stopped working, and the drop was a year of spending lost and no work income to replace it with. No "I get to buy the dip". That made me feel like going back to work until it recovered.
Folks who exchanged out of bond funds to buy the equity dip also avoided a 1% drop in their bond funds with the amount exchanged. So why not "I get to buy the dip"?
Ah, true. I am still rebalancing. Psychologically it doesn't feel like it did when I was saving next month's paycheck at lower prices. It sort of feels like that, but also I'm thinking about how maybe I'm selling the bonds I'll need for spending if things don't come back up for a long time. I'm guessing you've been mostly free of market worries for quite some time.

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Re: Ok fellow bogleheads, was the correction scary or nothing?

Post by Goinganontoday » Sat Mar 10, 2018 5:28 pm

Soon2BXProgrammer wrote:
Wed Mar 07, 2018 6:24 pm
there was a correction?
+1
This was my exact thought.

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Re: Ok fellow bogleheads, was the correction scary or nothing?

Post by WanderingDoc » Sat Mar 10, 2018 5:57 pm

Mako wrote:
Fri Mar 09, 2018 2:03 pm
I'm just a bit older than the OP, late 30s, and used to watch the market religiously. Lately I haven't even been on bogleheads much this year, and I had no idea until reading this thread that we had a 10% or so correction earlier this year. I think that's a good thing, the more aware I am the more I will tinker and I don't think that will ultimately be productive. I check in to my accounts quarterly to rebalance and that's that. New money has been going in automatically approximately to my normal 60-40 AA. I just figured my XIRR for the year is 5.65% and I'm not close to any rebalancing bands. Not great but not awful. I recommend paying less attention, if possible.
Curious, why do you rebalance quarterly? Most recommendations are annually or not at all.
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Re: Ok fellow bogleheads, was the correction scary or nothing?

Post by Cipro » Sun Mar 11, 2018 8:23 am

Well I admit that I found the dip scary. I'm 59 yo and looking to retire in the next 3 years. I had no worries during 2008, but then the number of years to retirement was greater and I was confident that I would likely recoup my losses in the next 10-15 years. Not so this close to retirement. As a result, I reallocated. One thing I've learned from 2008 is that it takes a lot of fixed income to counterbalance downturns. A big change in value of a portfolio at the beginning of retirement can make a big difference at the end.

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Re: Ok fellow bogleheads, was the correction scary or nothing?

Post by tibbitts » Sun Mar 11, 2018 10:31 am

As I mentioned in my previous post I still don't understand why people are talking about this in the past tense. I assume most people here are still down six figures, and I believe many Bogleheads are probably down seven figures, so at least for those who aren't accumulating I'm not understanding.

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Re: Ok fellow bogleheads, was the correction scary or nothing?

Post by runner23 » Sun Mar 11, 2018 10:36 am

tibbitts wrote:
Sun Mar 11, 2018 10:31 am
As I mentioned in my previous post I still don't understand why people are talking about this in the past tense. I assume most people here are still down six figures, and I believe many Bogleheads are probably down seven figures, so at least for those who aren't accumulating I'm not understanding.
I think the nasdaq closed at all time high on Friday. Other equity indexes are not that far off all time high either.

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Re: Ok fellow bogleheads, was the correction scary or nothing?

Post by multiham » Sun Mar 11, 2018 11:15 am

Cipro wrote:
Sun Mar 11, 2018 8:23 am
Well I admit that I found the dip scary. I'm 59 yo and looking to retire in the next 3 years. I had no worries during 2008, but then the number of years to retirement was greater and I was confident that I would likely recoup my losses in the next 10-15 years. Not so this close to retirement. As a result, I reallocated. One thing I've learned from 2008 is that it takes a lot of fixed income to counterbalance downturns. A big change in value of a portfolio at the beginning of retirement can make a big difference at the end.
I'm in the same position. I'm almost 53 and looking to retire at 55. Back in 2008, I hardly ever looked at my 401K as retirement wasn't even a thought. I did not enjoy getting quarterly statements showing losses, but never thought about decreasing my investing. Knew there were plenty of years left, and my best earning days were coming up. My job was safe, my kids were young, and finances were no where near as important to me as they are today.

Flash forward to the small correction we had. I'm now reading posts on here everyday. I know what number I need to hit to be fi. My asset allocation is aligned with my age and risk tolerance. Did I stop investing or change % contributions to taxable or 401K. No, I left them on autopilot and didn't do anything differently. However, I HATE losing money. People can tell me that I didn't lose anything and that it was just a paper loss for a short time. I don't feel that way. I expect markets to go up and down. I'm absolutely fine with that. What I don't like was the really wild swings as if there was no rationale to the market. I felt like a gambler, not an investor. Unemployment is down, inflation slightly rising but in check, corporate profits looking good and yet the market would start the day up 100 and then lose 400 points in the matter of a couple of hours. Made no sense to me, and I like things that are logical.

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Re: Ok fellow bogleheads, was the correction scary or nothing?

Post by island » Sun Mar 11, 2018 11:22 am

I'm in my 50's. It was nothing, didn't change a thing.

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Re: Ok fellow bogleheads, was the correction scary or nothing?

Post by nedsaid » Sun Mar 11, 2018 2:57 pm

JW-Retired wrote:
Sat Mar 10, 2018 3:18 pm
livesoft wrote:
Sat Mar 10, 2018 8:48 am
I guess that everyone who was "waiting for a correction" to invest are all invested now, right?
That could be an illuminating thread. Please start up one for us?
JW
My bet is that those who were waiting for a correction and got one are still waiting. It is bad enough to be worried about high valuations but even worse to be worried about falling stock prices. I have to admit that I have expressed a lot of concern about high valuations but have only continually rebalanced as the market advanced. Pretty much running in place. Another thing to consider is that during bull markets, stocks always look expensive. I like the Warren Buffett quote where in response to a question he says that the market is expensive but not as expensive as it looks.
A fool and his money are good for business.

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Re: Ok fellow bogleheads, was the correction scary or nothing?

Post by Porter01 » Sun Mar 11, 2018 5:40 pm

2000 I learned about John Bogle. 2008 and "lost decade" were great for me. I knew folks who sold out at the bottom in 2008 and those who bought into real estate speculation and in building trade had it rough.

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Re: Ok fellow bogleheads, was the correction scary or nothing?

Post by munemaker » Sun Mar 11, 2018 5:49 pm

If you think that was scary, you have not been around long.

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FrugalInvestor
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Re: Ok fellow bogleheads, was the correction scary or nothing?

Post by FrugalInvestor » Sun Mar 11, 2018 6:55 pm

I began to respond having only looked and the title and thinking you were asking about 2008-9. :oops:

After reading your post more carefully I realized you were speaking of the very recent market volatility. I suppose it may have technically been a 'correction' but in my book after going through 1987, 2000 and 2008-9 it was just a blip and nothing more. Could it have been worse? Certainly. But even then it would have taken much more to make me worry.

Keep in mind that the news media loves to trumpet "the largest (or second largest or whatever) market drop since blah blah blah". Also keep in mind when they say this that they're typically speaking of point drop, not percentage drop. There's a big difference.

Market volatility will always occur and most of the ups and downs are of little to no significance for a long-term investor. Even the truly big drops are fairly meaningless but it's hard for most of us to not fall into worry mode at some point.
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Re: Ok fellow bogleheads, was the correction scary or nothing?

Post by tibbitts » Sun Mar 11, 2018 9:10 pm

runner23 wrote:
Sun Mar 11, 2018 10:36 am
tibbitts wrote:
Sun Mar 11, 2018 10:31 am
As I mentioned in my previous post I still don't understand why people are talking about this in the past tense. I assume most people here are still down six figures, and I believe many Bogleheads are probably down seven figures, so at least for those who aren't accumulating I'm not understanding.
I think the nasdaq closed at all time high on Friday. Other equity indexes are not that far off all time high either.
I have a pretty conservative aa, depending on how you count things like high yield bonds, and I have less than many Bogleheads (nowhere near Flagship Select.) Still down about $70k as of today - more than a year's net salary. I'm not changing anything, but it's not the best feeling ever either.

CZjc1330
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Re: Ok fellow bogleheads, was the correction scary or nothing?

Post by CZjc1330 » Sun Mar 11, 2018 9:23 pm

Absolutely nothing because it corrected so quickly.

I expect a 10 to 15% correction w/in 15 months. So I peeled off last three-year paper profits and hold that portion in cash. (Since it is a tax-deferred account, I did not have to pay any taxes.)

When the market drops 15%, I'll dollar cost purchase into Vanguard Total Market over a 12 month period.

Good Luck.

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BrandonBogle
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Re: Ok fellow bogleheads, was the correction scary or nothing?

Post by BrandonBogle » Sun Mar 11, 2018 11:30 pm

tibbitts wrote:
Sun Mar 11, 2018 10:31 am
As I mentioned in my previous post I still don't understand why people are talking about this in the past tense. I assume most people here are still down six figures, and I believe many Bogleheads are probably down seven figures, so at least for those who aren't accumulating I'm not understanding.
While this doesn’t touch on talking about the correction in the past tense, I definitely didn’t experience a seven-figure or even six-figure drop. %-wise we all may have relatives similar changes though.

ssquared87
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Re: Ok fellow bogleheads, was the correction scary or nothing?

Post by ssquared87 » Sun Mar 11, 2018 11:52 pm

What correction? ;)

Honestly I pay no attention to the market. It’s a distraction from what’s important to my success and it’s out of my control so why get anxiety and risk staying the course?

balana
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Re: Ok fellow bogleheads, was the correction scary or nothing?

Post by balana » Mon Mar 12, 2018 4:41 am

I’m still in the accumulation phase with 20+ years to retirement, but personally, I don’t see the big deal. It dropped off within a couple of days and it’s rebounded quite a bit within a month or so. I expected a “correction” to be down for a significant period. Yeah, I’m a little annoyed to see my net worth drop, but it gets me more bang for my buck. YMMV.

Mako
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Re: Ok fellow bogleheads, was the correction scary or nothing?

Post by Mako » Mon Mar 12, 2018 10:16 am

WanderingDoc wrote:
Sat Mar 10, 2018 5:57 pm
Mako wrote:
Fri Mar 09, 2018 2:03 pm
...I check in to my accounts quarterly to rebalance and that's that...
Curious, why do you rebalance quarterly? Most recommendations are annually or not at all.
What I meant, which maybe wasn't exactly clear, was that check in quarterly to rebalance but I don't necessarily do so if I'm still within the bands.

keinodoggy
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Re: Ok fellow bogleheads, was the correction scary or nothing?

Post by keinodoggy » Mon Mar 12, 2018 11:17 am

multiham wrote:
Sun Mar 11, 2018 11:15 am
Cipro wrote:
Sun Mar 11, 2018 8:23 am
Well I admit that I found the dip scary. I'm 59 yo and looking to retire in the next 3 years. I had no worries during 2008, but then the number of years to retirement was greater and I was confident that I would likely recoup my losses in the next 10-15 years. Not so this close to retirement. As a result, I reallocated. One thing I've learned from 2008 is that it takes a lot of fixed income to counterbalance downturns. A big change in value of a portfolio at the beginning of retirement can make a big difference at the end.
I'm in the same position. I'm almost 53 and looking to retire at 55. Back in 2008, I hardly ever looked at my 401K as retirement wasn't even a thought. I did not enjoy getting quarterly statements showing losses, but never thought about decreasing my investing. Knew there were plenty of years left, and my best earning days were coming up. My job was safe, my kids were young, and finances were no where near as important to me as they are today.

Flash forward to the small correction we had. I'm now reading posts on here everyday. I know what number I need to hit to be fi. My asset allocation is aligned with my age and risk tolerance. Did I stop investing or change % contributions to taxable or 401K. No, I left them on autopilot and didn't do anything differently. However, I HATE losing money. People can tell me that I didn't lose anything and that it was just a paper loss for a short time. I don't feel that way. I expect markets to go up and down. I'm absolutely fine with that. What I don't like was the really wild swings as if there was no rationale to the market. I felt like a gambler, not an investor. Unemployment is down, inflation slightly rising but in check, corporate profits looking good and yet the market would start the day up 100 and then lose 400 points in the matter of a couple of hours. Made no sense to me, and I like things that are logical.
I felt like a gambler, not an investor
Investing in the market is gambling....

Teague
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Re: Ok fellow bogleheads, was the correction scary or nothing?

Post by Teague » Mon Mar 12, 2018 12:15 pm

keinodoggy wrote:
Mon Mar 12, 2018 11:17 am
Investing in the market is gambling....
I think they are significantly different.

For most people, over time, gambling has a negative expected return.

For most people, over time, investing has a positive expected return.
Semper Augustus

keinodoggy
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Re: Ok fellow bogleheads, was the correction scary or nothing?

Post by keinodoggy » Mon Mar 12, 2018 1:14 pm


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ruralavalon
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Re: Ok fellow bogleheads, was the correction scary or nothing?

Post by ruralavalon » Mon Mar 12, 2018 2:07 pm

Teague wrote:
Mon Mar 12, 2018 12:15 pm
keinodoggy wrote:
Mon Mar 12, 2018 11:17 am
Investing in the market is gambling....
I think they are significantly different.

For most people, over time, gambling has a negative expected return.

For most people, over time, investing has a positive expected return.
keinodoggy wrote:
Mon Mar 12, 2018 1:14 pm
Definition of gambling....

https://www.merriam-webster.com/dictionary/gamble
So investing in the stock market is significantly different than Las Vegas, but still a gamble.
"Everything should be as simple as it is, but not simpler." - Albert Einstein | Wiki article link:Getting Started

keinodoggy
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Re: Ok fellow bogleheads, was the correction scary or nothing?

Post by keinodoggy » Mon Mar 12, 2018 4:03 pm

ruralavalon wrote:
Mon Mar 12, 2018 2:07 pm
Teague wrote:
Mon Mar 12, 2018 12:15 pm
keinodoggy wrote:
Mon Mar 12, 2018 11:17 am
Investing in the market is gambling....
I think they are significantly different.

For most people, over time, gambling has a negative expected return.

For most people, over time, investing has a positive expected return.
keinodoggy wrote:
Mon Mar 12, 2018 1:14 pm
Definition of gambling....

https://www.merriam-webster.com/dictionary/gamble
So investing in the stock market is significantly different than Las Vegas, but still a gamble.
Yep....Vegas gives free drinks. :sharebeer

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