What did wise people do with their investments in 2008

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java007
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What did wise people do with their investments in 2008

Post by java007 » Fri Mar 01, 2019 12:59 am

What did wise people do with their investments in 2008 when it was confirmed bear market? Did they just hold the investments though it was a loss or modified allocations to make it 100% bonds or take out the money and moved it to savings account to protect the capital? I just want to gather ideas as stock market could come down anytime after the current bull run. Thank you for all your suggestions. Appreciate it.

RCL
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Re: What did wise people do with their investments in 2008

Post by RCL » Fri Mar 01, 2019 1:05 am

Not that I was wise, but didn't sell anything and tried to buy more when extra $$ were available
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Re: What did wise people do with their investments in 2008

Post by MotoTrojan » Fri Mar 01, 2019 1:09 am

java007 wrote:
Fri Mar 01, 2019 12:59 am
What did wise people do with their investments in 2008 when it was confirmed bear market? Did they just hold the investments though it was a loss or modified allocations to make it 100% bonds or take out the money and moved it to savings account to protect the capital? I just want to gather ideas as stock market could come down anytime after the current bull run. Thank you for all your suggestions. Appreciate it.
Wise people had a wise plan in place and stuck with it as if nothing happened, rebalancing along the way if the plan called for it.

yogesh
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Re: What did wise people do with their investments in 2008

Post by yogesh » Fri Mar 01, 2019 1:34 am

I didn’t know what to do when 401K tanked, every month it became worse, started worrying about job, stopped looking at 401k. It turned out that distractions helped and we sailed through. If I had taxable investments that time; I would have chickened out for sure. I learnt a lot about my conservative behavior so I am doing TR2040 in 401k and 50/50 balanced in taxable as in signature.

I was wise by accident :-)
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TierArtz
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Re: What did wise people do with their investments in 2008

Post by TierArtz » Fri Mar 01, 2019 1:48 am

My salary jumped in 2008, plus a pension started. I maxed all tax advantaged accounts and added what I could (rest of 30% of salary) to taxable accounts. Basically nothing different.

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Re: What did wise people do with their investments in 2008

Post by 02nz » Fri Mar 01, 2019 2:37 am

java007 wrote:
Fri Mar 01, 2019 12:59 am
I just want to gather ideas as stock market could come down anytime after the current bull run.
You're correct that the market could come down anytime. It could also go up. It could go up and then down. Or down and up. Or ...

You're trying to time the market. It's a fool's errand.

Do you have the knowledge, experience, and resources of professionals who do this for a living? No? Even most of them can't time the market. What makes you think you can? And remember, you have to be right twice - once getting out of the market, and again getting back in. There was another thread recently - "I got out of the market in 2015 because stock prices were crazy high ... how do I buy back in?"

Wise people stayed the course in 2008, because by the time it was a "confirmed bear market" as you call it, most of the losses were already behind them. Those that stayed the course in 2009 and beyond made a ton of money. Those that didn't ... well, you can search the forum. :wink:

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Re: What did wise people do with their investments in 2008

Post by pdavi21 » Fri Mar 01, 2019 3:03 am

Wise people sold stocks high and bought them back low. They were successful, and it made them stupid. Then came the Buy The Dip market of 2009-2019. The wise people were fools by then and sold low and bought high on every whipsaw.
"We spend a great deal of time studying history, which, let's face it, is mostly the history of stupidity." -Stephen Hawking

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Re: What did wise people do with their investments in 2008

Post by TheOscarGuy » Fri Mar 01, 2019 7:12 am

java007 wrote:
Fri Mar 01, 2019 12:59 am
What did wise people do with their investments in 2008 when it was confirmed bear market? Did they just hold the investments though it was a loss or modified allocations to make it 100% bonds or take out the money and moved it to savings account to protect the capital? I just want to gather ideas as stock market could come down anytime after the current bull run. Thank you for all your suggestions. Appreciate it.
This is similar to your other thread:

[/https://www.bogleheads.org/forum/view ... 1&t=274391

I can understand as a new investor you are hesitant to get your feet wet. This is more so true if you have a large sum of money you want to invest. But ask yourself this: do you care if you lose half of the money you invest, tomorrow, if you really are going to take out that money in 30 years? I imagine your time horizon is long term, so why does it matter what happens if market crashes? Even if you lose significant portion tomorrow after investing today, the 'loss' isn't realized unless you decide to sell. If you don't and keep the investment long term, you will come out ahead.

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Re: What did wise people do with their investments in 2008

Post by racy » Fri Mar 01, 2019 7:44 am

(Since I'm a bit of money nerd), I've tracked our portfolio performance monthly for 29+ years. Results: for 273 months (72% of the time) it increased, 97 months it declined (28%).
What'd I do in 2008? Nothing, other than stick to my Investment Policy Statement (which includes "stay the course: no market timing").

Rudedog
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Re: What did wise people do with their investments in 2008

Post by Rudedog » Fri Mar 01, 2019 8:28 am

STAY THE COURSE...............of course.

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Re: What did wise people do with their investments in 2008

Post by Jack FFR1846 » Fri Mar 01, 2019 8:32 am

I was wise the way that dead people were wise in the Fidelity 401k study, being the ones who had the most gain. I ignored an old 401k, which contained most of my retirement money, having rolled each employer's 401k into that one. 50% of it was in the stable value fund. How's that for genius?
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Re: What did wise people do with their investments in 2008

Post by TimDex » Fri Mar 01, 2019 8:40 am

Nothing.
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Re: What did wise people do with their investments in 2008

Post by Tamarind » Fri Mar 01, 2019 8:48 am

Wise people kept contributing to their accounts and rebalanced only occasionally as needed, because they knew that crashes, even large ones, are normal. They ignored the crash and continued as though it weren't happening, giving them more time to focus on keeping their job or finding a new one.

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Re: What did wise people do with their investments in 2008

Post by JW-Retired » Fri Mar 01, 2019 8:49 am

java007 wrote:
Fri Mar 01, 2019 12:59 am
What did wise people do with their investments in 2008 when it was confirmed bear market? Did they just hold the investments though it was a loss or modified allocations to make it 100% bonds or take out the money and moved it to savings account to protect the capital?
I wisely held tight.

In the fall of 2008, when stocks had fallen pretty far, I changed my periodic 401k contributions to buy 100% equities but I didn't sell any bonds to buy them. In the taxable account, except when exchanging one equity for another to tax loss harvest, I sold no stocks at all.

The whole do nothing thing was always the plan and it was quite painless. :D
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Re: What did wise people do with their investments in 2008

Post by LawyersGunsAndMoney » Fri Mar 01, 2019 8:51 am

I was very dumb, but also fortunate to start investing in late 2008-early 2009 when I first became 401k eligible (I was in my 20s).

Prior to that, I had worked for a few years and put money into a TradIRA with Fidelity. Because I was a dumb kid, I didn't know that you had to actually choose mutual funds to invest in, and so for the time period of 2007-2008 my contributions just sat in the default sweep account which I believe was a basic money market.

I even remember older colleages complaining about how their portfolios were down 20% or more, looking at my account's smaller losses and thinking "Wow, I'm a better investor than them because I invested in a Fidelity IRA!"

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Re: What did wise people do with their investments in 2008

Post by Peculiar_Investor » Fri Mar 01, 2019 8:56 am

java007 wrote:
Fri Mar 01, 2019 12:59 am
What did wise people do with their investments in 2008 when it was confirmed bear market?
Since the OP just recently joined they may or may not be aware that the forum was operating during the period in question, so if you search you can find 'as it happened' details of how forum members felt and acted during that time frame.

There is this timeless topic A time to EVALUATE your jitters, started in August 2011, that is a sticky in the Investing - Theory, News & General forum. Well worth reading, as is most of what nisiprius has written.

Other topics on the subject that I found using a quick search are: To answer the OP's question, I'd already been through Black Monday (October 1987) and the dot.com crisis, so my risk tolerance had already been well tested. We just followed the plan layout out in our investment policy statement (IPS).
Normal people… believe that if it ain’t broke, don’t fix it. Engineers believe that if it ain’t broke, it doesn’t have enough features yet. – Scott Adams

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Re: What did wise people do with their investments in 2008

Post by Call_Me_Op » Fri Mar 01, 2019 9:05 am

Those considered wise are only considered wise in hindsight. Since anything could have happened, this question cannot really be answered in a meaningful way. I would say those who were wise had enough in safe investments that they could have lost at least half of their equities without panicking. But I cannot say that one who was approaching retirement and was 100% in stocks was wise - even though ended-up fine.
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Re: What did wise people do with their investments in 2008

Post by nisiprius » Fri Mar 01, 2019 9:12 am

I don't know if I was wise, but I did nothing. I didn't buy more stocks, but most of my holdings were in balanced funds that did so automatically. In 2008 we were less than ten years from retirement and had serious money in our various retirement accounts. Around the time of the crash, my employers' sales dropped 70% and I was let go, so I lost my job at that time, too.

I'm risk-averse and I've always been adamant about sticking to a conservative stock allocation. I think this is what made it possible for my wife and I to get through 2008-2009 without selling. Within my personal set of acquaintances I know three people who sold heavily in late 2008. Since they had a higher stock allocation, it's possible that despite selling at the downturn, they might ended up with more dollars than I did but I think it is more likely that they ended up "about the same." I imagine experienced a more difficult emotional roller-coast ride than we did. For a number of reasons I don't know exact numbers, one being that people who sold during 2008-2009 don't like to talk about it.

Someone who did talk his mood in 2008 was writer Ben Stein, but I don't know if I took action. I did not experience the apparent depth of despair he seemed to be describing in a column in 2008:
I decided to [file] my stock transaction receipts… I like to review them in paper. Or, I should say I once upon a time liked to review them. Now, they're a catastrophe.

My losses are staggering even in the most plain vanilla index funds. In the emerging markets and developed markets, investments that had once provided immense gains, the losses are worse. Even in my beloved RQI, the high-income, leveraged REIT index fund, the losses are beyond belief.

Instead of just jumping off my balcony, which wouldn't get me more than a broken leg, I am going to try to make some sense of what has happened…. I am more than the mere composite of the stocks and bonds I own. I hate myself for being so dependent on how much money I have for my self image. As for retirement, well, I get sick and bored if I am not on the road most of the time anyway. The reason I am not suicidal right now is that I have a wife who would be fine with it if we had to live a more modest life style.
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Re: What did wise people do with their investments in 2008

Post by Rus In Urbe » Fri Mar 01, 2019 9:16 am

1. For about a year, I stopped looking at my accounts
2. I didn't change a thing in terms of investments coming out of my paycheck
3. I didn't sell some stuff that went plummeting in another account.

...Okay, not quite! There was one unwise move: 2 years later, I reviewed the stuff in #3. I sold one individual stock, $5,000 on Motorola, that was way down; I just didn't like their products (emotional, non-rational decision). Later Motorola came back, and more. But that was a tiny bit, a kind of side-bet. This is one reason I never buy individual stocks any more---I'm not lucky at roulettes. The rest of my funds were in mutuals or indexes, and stayed there.

The result of doing basically nothing was that it took about 14 months for my accounts to bounce back to where they had been before the crash---and by then I owned more pieces of the stock market. The Great Recovery has been wonderful.
I'd like to live as a poor man with lots of money. ~Pablo Picasso

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Re: What did wise people do with their investments in 2008

Post by fposte » Fri Mar 01, 2019 9:19 am

I was only wise in hindsight, but I was so clueless about my investments that it never occurred to me to do anything but just let them ride.

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Re: What did wise people do with their investments in 2008

Post by Broken Man 1999 » Fri Mar 01, 2019 9:22 am

Wise move: Added money to accounts when available. Sold nothing. Kept same AA, high % of equities.

Lucky move: Bought some individual stocks and made a bunch of money. Used money to upgrade our windows to hurricane rated.

Broken Man 1999
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Re: What did wise people do with their investments in 2008

Post by StandingRock » Fri Mar 01, 2019 9:24 am

Whenever you feel panicky you should just sell everything. That could happen in 2008 or any year really. Don't just focus on one year, that's dumb. Then after you're sure that the market is on the upswing, like it has been going up steadily for 5 to 10 years, go ahead and start buying again. You just need to make sure that you wait until the market is up big time, that way you can feel confident you're buying at the right time.


:)

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Re: What did wise people do with their investments in 2008

Post by Colorado13 » Fri Mar 01, 2019 9:29 am

fposte wrote:
Fri Mar 01, 2019 9:19 am
I was only wise in hindsight, but I was so clueless about my investments that it never occurred to me to do anything but just let them ride.
+1 Thankfully, I didn't consider any other courses of action and continued to invest in my 401K and IRA.

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Re: What did wise people do with their investments in 2008

Post by midareff » Fri Mar 01, 2019 9:31 am

I did nothing.... well, maybe a bit of mental weeping, as I continued to programmatically buy every two weeks.

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Re: What did wise people do with their investments in 2008

Post by beyou » Fri Mar 01, 2019 9:38 am

Given I work in the fund business (most of 3 decades through many financial crises), my job is tied to the markets.
Major drop always leads to layoffs in the fund business.
I was wise AND lucky in two ways :

1) I made sure my job was not tied just to the stock market, diversified my SKILL SET to help my firm with many things that helped them through the financial crisis, helping me to retain employment in tough times.

2) Given I experienced 2 major financial disruptions early in my career, I long ago learned to be prepared with an emergency fund, and to avoid panic (helps to have read Hitchhikers Guide to the Galaxy). We have a roller coaster ride of an economy, and I just close my eyes when dropping from the peak, and enjoy the ride back up. Set you asset allocation, and STICK TO IT. Warren Buffett once said that as an investor, it is wise to be “Fearful when others are greedy and greedy when others are fearful.” A colorful way to say to stick to your plan.
I sold stock as part of my AA plan last year, and while I could be regretful for the last month as we had a rally, I am not regretful.
The plan got me through 2008 and should "get you through" good times too (avoid greed).

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Re: What did wise people do with their investments in 2008

Post by robphoto » Fri Mar 01, 2019 9:42 am

Tried not to look at my accounts.

Paid off my mortgage, because there was so much chaos about people losing homes, and my mortgage was with Countrywide who were constantly making weird errors in my account.

My investments at the time were almost all stocks, so I didn't have money to rebalance toward them. I did buy some individual stocks to add to long-term holdings, because the prices/yields seemed ridiculously low for great companies that still making plenty of money (JNJ at 40-ish, 6 or 7% dividend)

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Re: What did wise people do with their investments in 2008

Post by dbr » Fri Mar 01, 2019 9:44 am

I retired a little before that. Having an appropriate asset allocation between stocks and bonds and diversity of income streams made 2008 no really big deal.

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Re: What did wise people do with their investments in 2008

Post by Elric » Fri Mar 01, 2019 10:00 am

Omniprescient people would have sold stocks in 2007 and bought treasuries. Being a mere mortal, I held the course, sold nothing, and continued to invest. It would have bothered me a lot more if I'd been planning to retire in the next year or two.

If you think you'd have been smart enough to sell as it started crashing, you may be right. But you also would then be likely to also sell on short, temporary dips, as well as stay out too long, missing growth. That's how many owners of mutual funds with outstanding performance managed to lose money over the years - they tried to time when they got in and out.
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Re: What did wise people do with their investments in 2008

Post by ruralavalon » Fri Mar 01, 2019 10:06 am

java007 wrote:
Fri Mar 01, 2019 12:59 am
What did wise people do with their investments in 2008 when it was confirmed bear market? Did they just hold the investments though it was a loss or modified allocations to make it 100% bonds or take out the money and moved it to savings account to protect the capital? I just want to gather ideas as stock market could come down anytime after the current bull run. Thank you for all your suggestions. Appreciate it.
We had a 65/35 asset allocation in August 2008, age 63, planning to retire in early 2011.

I continued regular contributions every pay period throughout 2008 and 2009.

I was petrified. In December 2008 the ratio was reversed, I sold Treasurys to buy stock index funds to rebalance, but didn't go back to 65/35 just to 50/50. It was hard to make myself do that, I certainly didn't feel "wise" at the time.
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Re: What did wise people do with their investments in 2008

Post by carol-brennan » Fri Mar 01, 2019 10:10 am

java007 wrote:
Fri Mar 01, 2019 12:59 am
What did wise people do with their investments in 2008 when it was confirmed bear market? Did they just hold the investments though it was a loss or modified allocations to make it 100% bonds or take out the money and moved it to savings account to protect the capital? I just want to gather ideas as stock market could come down anytime after the current bull run. Thank you for all your suggestions. Appreciate it.
At a bit over 10 years out from 2008, the story is not over yet, methinks.

Right now certain people are crowing about "staying the course." They appear wise at the moment.

I think the wisest thing you can do is set aside enough money outside of the stock market to live on for the rest of your life. With any extra, put it in the stock market casino and see how it does.

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Re: What did wise people do with their investments in 2008

Post by HomerJ » Fri Mar 01, 2019 10:15 am

java007 wrote:
Fri Mar 01, 2019 12:59 am
What did wise people do with their investments in 2008 when it was confirmed bear market? Did they just hold the investments though it was a loss or modified allocations to make it 100% bonds or take out the money and moved it to savings account to protect the capital? I just want to gather ideas as stock market could come down anytime after the current bull run. Thank you for all your suggestions. Appreciate it.
Wise people did nothing.

One should pick an Asset Allocation that you can hold through a 50% stock market crash that takes years to recover.

Because that crash could start tomorrow. You never know.

If you're young, that could still be an aggressive portfolio like 90/10 or 80/20 stocks/bonds, because you don't have a lot invested yet, and you have plenty of time for the market to recover. You just keep saving, and the stocks you buy during the crash will someday come back and be worth a lot more.

If you're older or close to retirement, you should have a more conservative portfolio like 50/50 or 40/60 stocks/bonds. That way, even if there is a crash starting tomorrow, it only affects part of your portfolio, and you can live off the bonds portion while waiting for the stocks side to recover.

But the point is to be ready for the next 2008 TODAY. Because the next 2008 might start tomorrow.

The risk of a crash or recession is never zero. It might be higher one year, or lower another year, but one should always be prepared for it.

And then you don't have to worry about it anymore.

It's like carrying an umbrella around all the time. If some talking head on TV starts screaming about how the chance of rain is higher today than it was last week, you don't have to do anything. Because you're already carrying an umbrella.
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Re: What did wise people do with their investments in 2008

Post by alpine_boglehead » Fri Mar 01, 2019 10:16 am

The bogleheads forum was already around in 2008. More or less wise people came together here to discuss (unfortunately I was not one of them - but I stayed the course nonetheless) :D. Read up on some old threads - it's really good reading. A time capsule, so to speak:

The wise stayed the course:

Sheepdog's thread

Some less wise (at this point in time) loaded up on leverage prior to 2008, and also stayed the course:

Market timer's thread

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Re: What did wise people do with their investments in 2008

Post by Theseus » Fri Mar 01, 2019 10:17 am

I wouldn’t say I am wise - but was lucky. But I was 90% in cash. I got fully Invested by the end of 2009. But I would stay the course if it happened again.

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Re: What did wise people do with their investments in 2008

Post by wootwoot » Fri Mar 01, 2019 10:21 am

They shorted banks and housing.

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Re: What did wise people do with their investments in 2008

Post by Johnsson » Fri Mar 01, 2019 10:24 am

Nothing. But, sweated profusely. 😉

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Re: What did wise people do with their investments in 2008

Post by alpine_boglehead » Fri Mar 01, 2019 10:29 am

carol-brennan wrote:
Fri Mar 01, 2019 10:10 am
java007 wrote:
Fri Mar 01, 2019 12:59 am
What did wise people do with their investments in 2008 when it was confirmed bear market? Did they just hold the investments though it was a loss or modified allocations to make it 100% bonds or take out the money and moved it to savings account to protect the capital? I just want to gather ideas as stock market could come down anytime after the current bull run. Thank you for all your suggestions. Appreciate it.
At a bit over 10 years out from 2008, the story is not over yet, methinks.

Right now certain people are crowing about "staying the course." They appear wise at the moment.

I think the wisest thing you can do is set aside enough money outside of the stock market to live on for the rest of your life. With any extra, put it in the stock market casino and see how it does.
Having enough money is always the solution to investment problems (unless you put it into stupid things).

The market (as in short term trading) may be like a casino. It's a wild place. Prices fluctuating wildly. Media covering the ongoings. Bystanders being frightened by all the noise. I go there shopping sometimes. If you meet me on the way home, in my shopping basket you'll find lettuce, tomatoes, and ownership certificates of companies that produce, innovate, and make money.

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Re: What did wise people do with their investments in 2008

Post by SchruteB&B » Fri Mar 01, 2019 10:32 am

ruralavalon wrote:
Fri Mar 01, 2019 10:06 am
I sold Treasurys to buy stock index funds to rebalance, but didn't go back to 65/35 just to 50/50. It was hard to make myself do that, I certainly didn't feel "wise" at the time.
This is one of the most important things I’ve learned about myself. The things that now appear wise did NOT feel good at the time. I had automatic investing set up so money kept going into the market regularly during late 2008-2009 and it felt like throwing money down the sewer at the time. I am impressed by the steady nerves of people who could actually sell and buy equities. I know myself now and only having set up auto invest years before 2009 let me buy at those low prices.

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Re: What did wise people do with their investments in 2008

Post by RNJ » Fri Mar 01, 2019 10:35 am

I can only make an educated guess at what wise people did, which would be something like this: Wise people had thought carefully about an asset allocation they could stick with (this AA was likely arrive at after having already experienced a bear market or two). They had adequate reserves in some form. They had a plan already in place and they stuck to it.

As for me, my second child was born in the summer of '08. My mind was elsewhere - a good thing.

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Re: What did wise people do with their investments in 2008

Post by HomerJ » Fri Mar 01, 2019 10:44 am

SchruteB&B wrote:
Fri Mar 01, 2019 10:32 am
ruralavalon wrote:
Fri Mar 01, 2019 10:06 am
I sold Treasurys to buy stock index funds to rebalance, but didn't go back to 65/35 just to 50/50. It was hard to make myself do that, I certainly didn't feel "wise" at the time.
This is one of the most important things I’ve learned about myself. The things that now appear wise did NOT feel good at the time. I had automatic investing set up so money kept going into the market regularly during late 2008-2009 and it felt like throwing money down the sewer at the time. I am impressed by the steady nerves of people who could actually sell and buy equities. I know myself now and only having set up auto invest years before 2009 let me buy at those low prices.
Yes, I agree... I also was 65/35. I rebalanced once (selling bonds to buy stocks), but stocks kept dropping, and I admit I was scared to rebalance again. I had a hard floor in bonds that I didn't want to lose. So I stopped rebalancing. But I never sold stocks, and all my NEW money went 100% into stocks.

It was interesting how easy it was to put NEW money 100% in stocks, but I did not want to risk any more of my bond money. I had a couple of hundred thousand in bonds, and if the Great Depression II was about to start (and remember, it certainly seemed possible at the time), I wanted that money to keep my family warm and fed. Cinderella Man (true story boxing movie set during the Great Depression) came out in 2005, and it was still fresh in my mind.

After the recovery, I changed my AA to 50/50, and have been perfectly happy with that since.

But staying the course was key. One should have an Asset Allocation TODAY that allows you to stay the course TOMORROW, even if the market crashes.

Because it might.
The J stands for Jay

bluebolt
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Re: What did wise people do with their investments in 2008

Post by bluebolt » Fri Mar 01, 2019 10:45 am

I wisely didn't do much. Kept my maxed 401ks maxed, my automatic investments invested, and rebalanced my accounts.

The only active move I made was that I had some deployable cash which I used to buy a broad market index fund in early 2009 when the Dow dipped below 7,000.

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HomerJ
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Re: What did wise people do with their investments in 2008

Post by HomerJ » Fri Mar 01, 2019 10:45 am

carol-brennan wrote:
Fri Mar 01, 2019 10:10 am
java007 wrote:
Fri Mar 01, 2019 12:59 am
What did wise people do with their investments in 2008 when it was confirmed bear market? Did they just hold the investments though it was a loss or modified allocations to make it 100% bonds or take out the money and moved it to savings account to protect the capital? I just want to gather ideas as stock market could come down anytime after the current bull run. Thank you for all your suggestions. Appreciate it.
At a bit over 10 years out from 2008, the story is not over yet, methinks.

Right now certain people are crowing about "staying the course." They appear wise at the moment.

I think the wisest thing you can do is set aside enough money outside of the stock market to live on for the rest of your life. With any extra, put it in the stock market casino and see how it does.
The story is over for 2008. Might be a new story coming up.
The J stands for Jay

Xrayman69
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Re: What did wise people do with their investments in 2008

Post by Xrayman69 » Fri Mar 01, 2019 10:48 am

I stayed the course. Maxed out 401K monthly and company match. Taxable accounts. Full disclosure only started employed career in 2006 so relatively low basis and also was only in money market funds to start as I was naive and didn’t realize I had to inform employer based fund managers how to distribute. Once I found out went 30% TArget date fund and the rest full equity funds based upon BH philosophy.

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Wiggums
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Re: What did wise people do with their investments in 2008

Post by Wiggums » Fri Mar 01, 2019 10:56 am

I had 23 years of investments in the market at that time. I stopped checking my account all the time. Something that I learned from the previous market downturn. I stayed fully invested and my contributions continued. I was 100% stocks. Fat, dumb and happy. I calmed worried Coworkers by telling them that great wealth is made during times like this. Something that I believe is true.
Last edited by Wiggums on Fri Mar 01, 2019 11:13 am, edited 6 times in total.

Spindrift
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Re: What did wise people do with their investments in 2008

Post by Spindrift » Fri Mar 01, 2019 10:57 am

I was 95% stocks as I have been my entire career until recently repositioning for retirement. I continued to max out 401K and throw all dry powder in as I got bonuses. It was painful saving a ton and seeing balances continue to decline. The only change I made was instead of checking my portfolio every morning, I reduced to only checking on Saturday. Bad way to start the weekend but I had to keep track of where I was. Just could not bear to do it every day.

mancich
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Re: What did wise people do with their investments in 2008

Post by mancich » Fri Mar 01, 2019 10:58 am

The wise investor stayed the course and kept plowing money into their investments on a regular basis. They probably also increased their emergency fund to deal with job security uncertainties, and avoided consumer debt. Sometimes these are easier said then done :oops:

DesertDiva
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Re: What did wise people do with their investments in 2008

Post by DesertDiva » Fri Mar 01, 2019 11:04 am

MotoTrojan wrote:
Fri Mar 01, 2019 1:09 am
java007 wrote:
Fri Mar 01, 2019 12:59 am
What did wise people do with their investments in 2008 when it was confirmed bear market? Did they just hold the investments though it was a loss or modified allocations to make it 100% bonds or take out the money and moved it to savings account to protect the capital? I just want to gather ideas as stock market could come down anytime after the current bull run. Thank you for all your suggestions. Appreciate it.
Wise people had a wise plan in place and stuck with it as if nothing happened, rebalancing along the way if the plan called for it.
+1. Precisely.

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Tycoon
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Re: What did wise people do with their investments in 2008

Post by Tycoon » Fri Mar 01, 2019 11:07 am

I upped our investment contributions.
“To know what you know and what you do not know, that is true knowledge.” Confucius

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ruralavalon
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Re: What did wise people do with their investments in 2008

Post by ruralavalon » Fri Mar 01, 2019 11:08 am

SchruteB&B wrote:
Fri Mar 01, 2019 10:32 am
ruralavalon wrote:
Fri Mar 01, 2019 10:06 am
I sold Treasurys to buy stock index funds to rebalance, but didn't go back to 65/35 just to 50/50. It was hard to make myself do that, I certainly didn't feel "wise" at the time.
This is one of the most important things I’ve learned about myself. The things that now appear wise did NOT feel good at the time. I had automatic investing set up so money kept going into the market regularly during late 2008-2009 and it felt like throwing money down the sewer at the time. I am impressed by the steady nerves of people who could actually sell and buy equities. I know myself now and only having set up auto invest years before 2009 let me buy at those low prices.
Also all new contributions, every pay period, were invested in stock index funds.

Our asset allocation is still 50/50.

It all turned out well, I retired on schedule in January 2011.
"Everything should be as simple as it is, but not simpler." - Albert Einstein | Wiki article link:Getting Started

Dottie57
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Re: What did wise people do with their investments in 2008

Post by Dottie57 » Fri Mar 01, 2019 11:11 am

Not wise but two faced. One face sold one years expenses in stocks so I slept better. The other face upped the percentage of stocks bought in 401k - max contribution because - SALE!

Odd reaction but there it s.

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Fieldsy1024
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Re: What did wise people do with their investments in 2008

Post by Fieldsy1024 » Fri Mar 01, 2019 11:14 am

A year after investing in the company I work for (Boeing). I wasnt smart, but I was lucky. I didnt invest probably till April of 2007 so that's when I started from 0.

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