I am down twice as much as you. It's not a permanent loss. The first few weeks were rough.Alex GR wrote: ↑Mon Mar 23, 2020 7:38 amMathguy,
For what it's worth, I also can't sleep at night. I wake up thinking: "was this whole coronavirus/market crash thing a dream or did I just lose $150k in 30 days???"
(Some people I know can't save that much in their lifetime)
Really, I am in the same boat. I wake up in the middle of the night and cannot fall asleep for hours. The typical forum response for this is "well then you didn't set the allocation appropriately". I've seen it hundreds of times in response to statements like this.
Having said that, I don't really follow you on the rest of it.
The time to sell (if any) was in late February. For example, when VTI was 170 and dropped to 150, you could sell all stock and hold cash temporarily until the smoke clears. You would have a pretty good chance of getting back in at least @150. Even if the market took off and soared back to 170, at some point it would likely drop and you could get back in.
But now it's simply too late. For all we know, today (or sometime this week) could be another March 9th, 2009.
One thing I could understand is if (following my VTI example) you sell it today @115 and immediately put in orders to buy @105, 100, 95 and 90 (or some variation of this) hoping they execute and (depending on portfolio size) make(save) yourself several thousand dollars. Tens of thousands for a decent portfolio. But then again, what do you do if that doesn't happen? Or, what if only 105 executes and others don't, and the market takes off from there?
I am probably feeling even worse than you are (read the first part of my post). But I realize that the only option at this point is to ignore it and wait for the market to come back.
Can't force myself to rebalance by selling bond and buying stock to return to desired allocation like I am suppose to according to this forum. But have enough strength to ride it out.
P.S. Watchnerd, I know you're reading. You on board with this? (except for the nocturnal part of course)
I went through 2008 and saw some colleagues get laid off. 2008 was really bad and dark. Especially in the cold of December.
My CIO halted raises for 3 years.
This will pass and recover. You'll have gained the exposure to a bear market. You will go through another and it will be less of a shock to you.
If you bail, you lock in perm losses. Next you'll have sleepless nights on figuring out on when to get back in because the recovery will be non linear. Your sleepless nights will be much worse because you'll be kicking yourself in not participating in the recovery. You'll be swearing and wringing your hands in anxiety while sitting out and watching the gains.