How will you survive a melt up in stocks?

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Tigermoose
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Joined: Sat Jul 21, 2012 5:02 pm

How will you survive a melt up in stocks?

Post by Tigermoose » Fri Aug 19, 2016 11:51 am

http://awealthofcommonsense.com/2016/08 ... a-melt-up/

I thought this was Bogle Head type advice that would be beneficial to readers here, especially new ones.

...

1. Don't change your strategy
2. Stay within your comfort zone.
3. Avoid chasing yield and substitutes
4. Don’t own more stocks than you’re comfortable holding during a bear market.
5. Have a plan.
6. Above all else, know yourself.

...
Institutions matter

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nedsaid
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Re: How will you survive a melt up in stocks?

Post by nedsaid » Fri Aug 19, 2016 12:11 pm

Since July of 2013, I have been in a mild rebalancing campaign from stocks to bonds. In the event of a market melt up, I would just keep harvesting my stock gains and putting the proceeds into bonds. What else would I do?
A fool and his money are good for business.

n00b_to_investing
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Joined: Mon Feb 11, 2013 1:37 pm

Re: How will you survive a melt up in stocks?

Post by n00b_to_investing » Fri Aug 19, 2016 1:07 pm

I am tempted to harvest some gains but since bulk of my savings is in taxable accounts I am hesitant as it would generate to a taxable event.

Tigermoose
Posts: 555
Joined: Sat Jul 21, 2012 5:02 pm

Re: How will you survive a melt up in stocks?

Post by Tigermoose » Fri Aug 19, 2016 1:14 pm

nedsaid wrote:Since July of 2013, I have been in a mild rebalancing campaign from stocks to bonds. In the event of a market melt up, I would just keep harvesting my stock gains and putting the proceeds into bonds. What else would I do?
LEVER UP BABY! :mrgreen:
Institutions matter

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cfs
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Location: ~ Mi Propio Camino ~

Re: How will you survive a melt up in stocks?

Post by cfs » Fri Aug 19, 2016 1:26 pm

Melt Up?

Stocks exploding? Why Bonds? 100% in Equities? Missing the stock market's boat? Time for a refresher course. Check the five steps of a bubble on the attachment: http://www.investopedia.com/articles/st ... bubble.asp -- Good luck with your investments, good luck with your Black Swan-Ready portfolio.

Thanks for reading.
~ Member of the Active Retired Force since 2014 ~

GoldenFinch
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Re: How will you survive a melt up in stocks?

Post by GoldenFinch » Fri Aug 19, 2016 7:13 pm

What to do during melt up is a good reminder of what to do during melt down: stick to your plan and stay the course. I really think it's better not to pay attention too much in either case.

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SeeMoe
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Re: How will you survive a melt up in stocks?

Post by SeeMoe » Sat Aug 20, 2016 10:59 am

Tigermoose wrote:http://awealthofcommonsense.com/2016/08 ... a-melt-up/

I thought this was Bogle Head type advice that would be beneficial to readers here, especially new ones.

...

1. Don't change your strategy
2. Stay within your comfort zone.
3. Avoid chasing yield and substitutes
4. Don’t own more stocks than you’re comfortable holding during a bear market.
5. Have a plan.
6. Above all else, know yourself.

FIRST: Take a deep breath, slowly exhale and "take stock" of the situation. Don't PANIC! Looking back over 30+ years of investing experiences I see where I had an epiphany after the early 1980's crash and sold months after the lows, and I was wrong to do so! Held and also bought on the sharp "V" shaped plunge after "911" , and did very well. Did not sell during the "DOT com" fiasco either, but held what I had. The 2007-08 Market Meltdown caused me to hold, but not buy in to this current Bull Market until 2012! Big mistake,...Have a plan , stay diversified and chill out during any crisis. "Panic and Epiphanies" are the real enemies,.. for me anyway.

SeeMoe.. :shock:
...
"By gnawing through a dike, even a Rat can destroy a nation ." {Edmund Burke}

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FIREchief
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Re: How will you survive a melt up in stocks?

Post by FIREchief » Sat Aug 20, 2016 8:52 pm

Light a cigar, pour a beer and watch for the inevitable carnage of a crash? It's all good if you finish where you need to.

(100% equity investor)
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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blueblock
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Location: Wisconsin

Re: How will you survive a melt up in stocks?

Post by blueblock » Sun Aug 21, 2016 8:06 am

Tigermoose wrote: 1. Don't change your strategy
2. Stay within your comfort zone.
3. Avoid chasing yield and substitutes
4. Don’t own more stocks than you’re comfortable holding during a bear market.
5. Have a plan.
6. Above all else, know yourself.
Items 1-6: check!

If there's a big run up, I will stick to my plan. (Same as when there's a downturn.)

rixer
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Re: How will you survive a melt up in stocks?

Post by rixer » Sun Aug 21, 2016 10:32 am

Because I am never sure about what the right moves are at times, I put it in a lifestrategy fund and take what it gives me. It will likely be as good as I can do so I just roll with it.

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Cosmo
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Re: How will you survive a melt up in stocks?

Post by Cosmo » Mon Aug 22, 2016 5:11 am

Tigermoose wrote:http://awealthofcommonsense.com/2016/08 ... a-melt-up/

I thought this was Bogle Head type advice that would be beneficial to readers here, especially new ones.

...

1. Don't change your strategy
2. Stay within your comfort zone.
3. Avoid chasing yield and substitutes
4. Don’t own more stocks than you’re comfortable holding during a bear market.
5. Have a plan.
6. Above all else, know yourself.

...
I can get past "melt up". What? How about stock "Solidification" or "Sky High" equities?

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