RBD alert [Really Bad Day]

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The Wizard
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RBD alert [Really Bad Day]

Post by The Wizard » Mon Feb 05, 2018 3:08 pm

Keep an eye on the major stock metrics.
You've got 50 minutes from now to put in a buy order if things hold...
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vk_217
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Re: RBD alert

Post by vk_217 » Mon Feb 05, 2018 3:14 pm

Should I exchange my bonds to equities.Sorry 1 year BH here and I have about 25k in equities and 5K in Bonds.
I came, I saw, I'm leaving.

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Re: RBD alert

Post by The Wizard » Mon Feb 05, 2018 3:16 pm

vk_217 wrote:
Mon Feb 05, 2018 3:14 pm
Should I exchange my bonds to equities.Sorry 1 year BH here and I have about 25k in equities and 5K in Bonds.
Not the whole 5K, no.
$500 at most for you, probably less...
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The Wizard
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Re: RBD alert

Post by The Wizard » Mon Feb 05, 2018 3:18 pm

It appears we just had a bit of a flash crash, in the DJIA at least, followed by a decent dead cat bounce.
Make of that what you will...
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LiterallyIronic
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Re: RBD alert

Post by LiterallyIronic » Mon Feb 05, 2018 3:21 pm

This is a good time of the month for it to be down. My 401k contribution should be going in right about now (the 5th), and my Roth IRA will be in a couple of days, with my wife's a couple days after that. Hopefully it doesn't rebound right before I get my monthly contributions in.

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Re: RBD alert

Post by asif408 » Mon Feb 05, 2018 3:23 pm

I'm kind of disappointed my EM funds are down less than my US funds today, because I wanted to buy more of them. I thought EM was more volatile?

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Re: RBD alert

Post by triceratop » Mon Feb 05, 2018 3:25 pm

asif408 wrote:
Mon Feb 05, 2018 3:23 pm
I'm kind of disappointed my EM funds are down less than my US funds today, because I wanted to buy more of them. I thought EM was more volatile?
It must be the superior accounting standards of the US viz a viz EM stocks, and the fact the market hasn't priced that in. :wink:
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Re: RBD alert

Post by greg24 » Mon Feb 05, 2018 3:27 pm

asif408 wrote:
Mon Feb 05, 2018 3:23 pm
I'm kind of disappointed my EM funds are down less than my US funds today, because I wanted to buy more of them. I thought EM was more volatile?
Being more volatile doesn't mean they are more volatile every single trading session.

retiringwhen
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Re: RBD alert

Post by retiringwhen » Mon Feb 05, 2018 3:31 pm

The Wizard wrote:
Mon Feb 05, 2018 3:18 pm
It appears we just had a bit of a flash crash, in the DJIA at least, followed by a decent dead cat bounce.
Make of that what you will...
That is a major reason ETF’s give me the willies... I like that I can put a trade in for TSM for the closing price and not have to worry about getting killed in a momentary blip on the exchange.....

BTW, not really an RBD guy, love to track these though. I have a some money ready for the market, so putting a bit in. Just a bit on the edges.....

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Re: RBD alert

Post by Nearly A Moose » Mon Feb 05, 2018 3:50 pm

vk_217 wrote:
Mon Feb 05, 2018 3:14 pm
Should I exchange my bonds to equities.Sorry 1 year BH here and I have about 25k in equities and 5K in Bonds.
Only if it’s part of your long term plan. Do you an IPS that says to do this? Recommend caution just jumping into buy/sell decisions.
Pardon typos, I'm probably using my fat thumbs on a tiny phone.

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Re: RBD alert

Post by perl » Mon Feb 05, 2018 3:51 pm

greg24 wrote:
Mon Feb 05, 2018 3:27 pm
asif408 wrote:
Mon Feb 05, 2018 3:23 pm
I'm kind of disappointed my EM funds are down less than my US funds today, because I wanted to buy more of them. I thought EM was more volatile?
Being more volatile doesn't mean they are more volatile every single trading session.
Yes. Learning that average results don't predict single day results is crucial for successful investing.

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Re: RBD alert

Post by H-Town » Mon Feb 05, 2018 3:56 pm

TLH alert...

Longtermgrowth
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Re: RBD alert

Post by Longtermgrowth » Mon Feb 05, 2018 4:07 pm

The Wizard wrote:
Mon Feb 05, 2018 3:18 pm
It appears we just had a bit of a flash crash, in the DJIA at least, followed by a decent dead cat bounce.
Make of that what you will...
I happened to be watching my fund tickers in yahoo finance when this happened. Am I the only one that got a good laugh out of it?

Dead cat bounce, hmm... If it turns out to be officially called that, it would mean better buying opportunities to come!

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Re: RBD alert

Post by david1082b » Mon Feb 05, 2018 4:15 pm

asif408 wrote:
Mon Feb 05, 2018 3:23 pm
I'm kind of disappointed my EM funds are down less than my US funds today, because I wanted to buy more of them. I thought EM was more volatile?
In the last week EEM is down more than VTI... you can still buy more of it if you have enough government-controlled printed paper "money". 8-) :moneybag

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Re: RBD alert [Really Bad Day]

Post by LadyGeek » Mon Feb 05, 2018 4:26 pm

This thread is now in the Investing - Theory, News & General forum (bad day in the market).

See: Abbreviations and Acronyms - Bogleheads
RBD - Really Bad Day. A Bogleheads' idiomatic term coined by forum member livesoft. An early mention is in this thread: Today was a Really Bad Day.
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Jacobkg
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Re: RBD alert [Really Bad Day]

Post by Jacobkg » Mon Feb 05, 2018 5:35 pm

Can someone remind me what course of action is recommended by the proponents of the RBD philosophy?

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Re: RBD alert [Really Bad Day]

Post by White Coat Investor » Mon Feb 05, 2018 5:37 pm

Jacobkg wrote:
Mon Feb 05, 2018 5:35 pm
Can someone remind me what course of action is recommended by the proponents of the RBD philosophy?
You're supposed to put your February 401(k) contribution in today.
1) Invest you must 2) Time is your friend 3) Impulse is your enemy | 4) Basic arithmetic works 5) Stick to simplicity 6) Stay the course

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Re: RBD alert

Post by tesuzuki2002 » Mon Feb 05, 2018 6:53 pm

The Wizard wrote:
Mon Feb 05, 2018 3:18 pm
It appears we just had a bit of a flash crash, in the DJIA at least, followed by a decent dead cat bounce.
Make of that what you will...
I had some open buy orders trigger than I put in back in December.. nice!!!
Calculated risks... be prudent.. make decisions and then let the marker freak in your favor!!

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Re: RBD alert

Post by whodidntante » Mon Feb 05, 2018 6:55 pm

asif408 wrote:
Mon Feb 05, 2018 3:23 pm
I'm kind of disappointed my EM funds are down less than my US funds today, because I wanted to buy more of them. I thought EM was more volatile?
Bonds^H^H^H^H^H EM is for safety.

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Johnnie
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Re: RBD alert [Really Bad Day]

Post by Johnnie » Mon Feb 05, 2018 7:04 pm

You guys make me nervous with all this cavalier talk. Even though I happen to agree that this is likely a blip, or just part of a garden-variety correction. But - cue my signature line. :|
"I know nothing."

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Re: RBD alert [Really Bad Day]

Post by Doom&Gloom » Mon Feb 05, 2018 7:15 pm

Johnnie wrote:
Mon Feb 05, 2018 7:04 pm
You guys make me nervous with all this cavalier talk. Even though I happen to agree that this is likely a blip, or just part of a garden-variety correction. But - cue my signature line. :|
Cavalier? Shoot, even I'm not worried. (Cue my screen-name 8-) )

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Re: RBD alert

Post by MindBogler » Mon Feb 05, 2018 7:15 pm

retiringwhen wrote:
Mon Feb 05, 2018 3:31 pm
That is a major reason ETF’s give me the willies... I like that I can put a trade in for TSM for the closing price and not have to worry about getting killed in a momentary blip on the exchange.....
That's not how it works, though. You would generally set a limit order to purchase an ETF and so a momentary blip will never harm you in the way you are envisioning.

For example (totally made up share prices):

Action: Sell 10 shares of BND at 10.
Result: The 10 shares sell for either 10, or some higher value.
Or: The shares do not sell.

The lower limit protected you on the downside, but they can sell for higher. If you ask for 10 and people bid 11 then congrats, you sell at 11.

Action: Buy 10 shares of BND at 10.
Result: You buy 10 shares of BND for 10 or less.
Or: Your purchase order fails to attract any sellers.

The upper limit protected you from the upside. You bid at up to 10. Your broker will execute trades at any ask from 0 - 10.

The main issue with ETFs is when they have low volume and thus have large deviations from NAV. For the large ETFs, like Vanguard, this is rarely an issue. The only way you could get "hit" by a momentary blip is if you use things like long standing stop loss orders. That isn't an issue for a buy and hold investor.

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Re: RBD alert [Really Bad Day]

Post by livesoft » Mon Feb 05, 2018 7:19 pm

Jacobkg wrote:
Mon Feb 05, 2018 5:35 pm
Can someone remind me what course of action is recommended by the proponents of the RBD philosophy?
Check your rebalancing bands before the market closes with current estimates of your mutual fund expected closing NAVs based on current prices of the corresponding ETFs.
-or-
Check this evening your rebalancing bands.

If you need to rebalance, then rebalance.

That's it.
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Re: RBD alert [Really Bad Day]

Post by nodenuff2 » Mon Feb 05, 2018 7:48 pm

Just checked my bands . Nope no changes needed. Yawn.
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bling
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Re: RBD alert [Really Bad Day]

Post by bling » Mon Feb 05, 2018 8:06 pm

Jacobkg wrote:
Mon Feb 05, 2018 5:35 pm
Can someone remind me what course of action is recommended by the proponents of the RBD philosophy?
the basic idea is that you know whether it's a bad day or not before the close. armed with that knowledge, you can use bonds to buy stocks at a "discount" and temporarily push the boundaries of your rebalancing bands.

however, you don't want to be outside of your desired asset allocation for too long, so you will want to reverse the trade soon after. there are no rules for when to exit the trade.

as with all trading systems, it's not when you enter, it's when you exit.

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Re: RBD alert [Really Bad Day]

Post by mariezzz » Mon Feb 05, 2018 8:11 pm

Is VTSAX below where is was in Dec 2017? I don't think so. Keep things in perspective. If you weren't doing anything 6-8 weeks ago in Dec, why do you think you should do something now?

Stay the course? What does your IPS say?

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Re: RBD alert [Really Bad Day]

Post by t5990jp » Mon Feb 05, 2018 8:19 pm

In an uncharacteristic fortunate event of timing, I liquidated my Edwards Jones earlier this month and completed the transfer into my newly opened Vangard account. It is sitting in Federal Money Market Fund. My question is, if I initiate a transfer into a mutual fund (VTSAX) tonight or tomorrow morning, how real time does the transaction take place. If the market opens way down tomorrow morning like it did today, can I pull the trigger and have the funds immediately go from FMMF to VTSAX? Thanks, and sorry for the rookie question. Obviously I'm a new Boglehead.

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Re: RBD alert [Really Bad Day]

Post by ofcmetz » Mon Feb 05, 2018 8:35 pm

White Coat Investor wrote:
Mon Feb 05, 2018 5:37 pm
Jacobkg wrote:
Mon Feb 05, 2018 5:35 pm
Can someone remind me what course of action is recommended by the proponents of the RBD philosophy?
You're supposed to put your February 401(k) contribution in today.
My wife's go in tomorrow. Market will be up 10% tomorrow now.
Never underestimate the power of the force of low cost index funds.

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Re: RBD alert [Really Bad Day]

Post by Darwin » Mon Feb 05, 2018 8:43 pm

"Stay on target..."

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Re: RBD alert [Really Bad Day]

Post by Miriam2 » Mon Feb 05, 2018 8:46 pm

The Wizard wrote: It appears we just had a bit of a flash crash, in the DJIA at least, followed by a decent dead cat bounce.
Wizard, your description was quite descriptive 8-)

"A dead cat bounce is a temporary recovery from a prolonged decline or a bear market that is followed by the continuation of the downtrend. The name "dead cat bounce" is based on the notion that even a dead cat will bounce if it falls far enough and fast enough."

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Re: RBD alert [Really Bad Day]

Post by livesoft » Mon Feb 05, 2018 8:47 pm

t5990jp wrote:
Mon Feb 05, 2018 8:19 pm
In an uncharacteristic fortunate event of timing, I liquidated my Edwards Jones earlier this month and completed the transfer into my newly opened Vangard account. It is sitting in Federal Money Market Fund. My question is, if I initiate a transfer into a mutual fund (VTSAX) tonight or tomorrow morning, how real time does the transaction take place. If the market opens way down tomorrow morning like it did today, can I pull the trigger and have the funds immediately go from FMMF to VTSAX? Thanks, and sorry for the rookie question. Obviously I'm a new Boglehead.
Mutual fund trade executions are never real-time. All executions occur at the NAV calculated after the next market close after an order is submitted in a timely fashion. So if the market opens way down in the morning, you could submit an order, but the market could be way up by the market close when your order is executed.
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Re: RBD alert [Really Bad Day]

Post by triceratop » Mon Feb 05, 2018 8:48 pm

mariezzz wrote:
Mon Feb 05, 2018 8:11 pm
Is VTSAX below where is was in Dec 2017? I don't think so. Keep things in perspective. If you weren't doing anything 6-8 weeks ago in Dec, why do you think you should do something now?

Stay the course? What does your IPS say?
VTSAX is below where it was for all but 2 days in December.
"To play the stock market is to play musical chairs under the chord progression of a bid-ask spread."

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Re: RBD alert [Really Bad Day]

Post by radiowave » Mon Feb 05, 2018 8:50 pm

It's nice having target date retirement index funds in tax-deferred. I just peek a little and smile not having to worry about IPS bands :)
Last edited by radiowave on Mon Feb 05, 2018 8:52 pm, edited 1 time in total.
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Re: RBD alert [Really Bad Day]

Post by The Wizard » Mon Feb 05, 2018 8:51 pm

triceratop wrote:
Mon Feb 05, 2018 8:48 pm
mariezzz wrote:
Mon Feb 05, 2018 8:11 pm
Is VTSAX below where is was in Dec 2017? I don't think so. Keep things in perspective. If you weren't doing anything 6-8 weeks ago in Dec, why do you think you should do something now?

Stay the course? What does your IPS say?
VTSAX is below where it was for all but 2 days in December.
So today's close was a good buying opportunity.
Will tomorrow's be as well?
We'll see...
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nedsaid
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Re: RBD alert [Really Bad Day]

Post by nedsaid » Mon Feb 05, 2018 8:55 pm

About the only good thing about this sudden downdraft in the stock market is that I won't have to worry about rebalancing for a while. My decision to gently rebalance from stocks to bonds as the market kept hitting new highs looks pretty good now. I started this process in July 2013 and continued until just last month. I was getting ready to do another round of mild rebalancing when the market experienced this drop. When the market starts hitting new all-time highs, I will likely resume my program of mild rebalancing.

My plan is to do absolutely nothing. I own good stuff and this should all recover given enough time.
A fool and his money are good for business.

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Re: RBD alert [Really Bad Day]

Post by MindBogler » Mon Feb 05, 2018 9:17 pm

nedsaid wrote:
Mon Feb 05, 2018 8:55 pm
About the only good thing about this sudden downdraft in the stock market is that I won't have to worry about rebalancing for a while. My decision to gently rebalance from stocks to bonds as the market kept hitting new highs looks pretty good now. I started this process in July 2013 and continued until just last month. I was getting ready to do another round of mild rebalancing when the market experienced this drop. When the market starts hitting new all-time highs, I will likely resume my program of mild rebalancing.

My plan is to do absolutely nothing. I own good stuff and this should all recover given enough time.
I'm feeling pretty content now with my move from 85/15 to 70/30 about 8 months ago. It was the right time for me to engage in de-risking.

Whether we are in for a correction now or not, the only viable strategy is to "batten down the hatches!" and hold on for the ride. One should set an asset allocation in calm water so one does not capsize the ship in stormy water.

Don't do anything rash, folks.

:sharebeer

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Re: RBD alert [Really Bad Day]

Post by nedsaid » Mon Feb 05, 2018 9:27 pm

MindBogler wrote:
Mon Feb 05, 2018 9:17 pm
nedsaid wrote:
Mon Feb 05, 2018 8:55 pm
About the only good thing about this sudden downdraft in the stock market is that I won't have to worry about rebalancing for a while. My decision to gently rebalance from stocks to bonds as the market kept hitting new highs looks pretty good now. I started this process in July 2013 and continued until just last month. I was getting ready to do another round of mild rebalancing when the market experienced this drop. When the market starts hitting new all-time highs, I will likely resume my program of mild rebalancing.

My plan is to do absolutely nothing. I own good stuff and this should all recover given enough time.
I'm feeling pretty content now with my move from 85/15 to 70/30 about 8 months ago. It was the right time for me to engage in de-risking.

Whether we are in for a correction now or not, the only viable strategy is to "batten down the hatches!" and hold on for the ride. One should set an asset allocation in calm water so one does not capsize the ship in stormy water.

Don't do anything rash, folks.

:sharebeer
A lot of people are probably thinking about what they are going to do about all of this. I have been saying that market highs are a good time to evaluate your risk profile. Better to think about things like this when markets are good rather than after they have crashed.
A fool and his money are good for business.

t5990jp
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Re: RBD alert [Really Bad Day]

Post by t5990jp » Mon Feb 05, 2018 9:36 pm

livesoft wrote:
Mon Feb 05, 2018 8:47 pm
t5990jp wrote:
Mon Feb 05, 2018 8:19 pm
In an uncharacteristic fortunate event of timing, I liquidated my Edwards Jones earlier this month and completed the transfer into my newly opened Vangard account. It is sitting in Federal Money Market Fund. My question is, if I initiate a transfer into a mutual fund (VTSAX) tonight or tomorrow morning, how real time does the transaction take place. If the market opens way down tomorrow morning like it did today, can I pull the trigger and have the funds immediately go from FMMF to VTSAX? Thanks, and sorry for the rookie question. Obviously I'm a new Boglehead.
Mutual fund trade executions are never real-time. All executions occur at the NAV calculated after the next market close after an order is submitted in a timely fashion. So if the market opens way down in the morning, you could submit an order, but the market could be way up by the market close when your order is executed.
Appreciate that livesoft. So if I understand correctly, if I purchase any time between now and the closing bell tomorrow, the pricing will set at the closing price of the funds I choose. Thanks again!

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Re: RBD alert [Really Bad Day]

Post by mariezzz » Mon Feb 05, 2018 9:46 pm

triceratop wrote:
Mon Feb 05, 2018 8:48 pm
mariezzz wrote:
Mon Feb 05, 2018 8:11 pm
Is VTSAX below where is was in Dec 2017? I don't think so. Keep things in perspective. If you weren't doing anything 6-8 weeks ago in Dec, why do you think you should do something now?

Stay the course? What does your IPS say?
VTSAX is below where it was for all but 2 days in December.
If you look at 'growth' in Morningstar, it's more like mid-Dec - VTSAX was relatively lower (by a little) in the first half of Nov. My point, however, was stocks went up quickly & now they're going down quickly. Most people are just losing gains.

The psychological reaction I'm seeing is quite interesting. If the stock market had ended 2017 a little lower (about 6% lower) and we have gained 1-2% in 2018, to end up precisely where we are today, Feb. 5 2018, we'd all be happy.

Instead, we had a ridiculously exuberant January - we all knew that (following a very good 2017), and then the market dropped over the last week. And now we're anxious.

I'm staying focused on how much I've gained since Jan 1 2017. With the ups, come downs.

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Re: RBD alert [Really Bad Day]

Post by iceport » Tue Feb 06, 2018 2:50 am

livesoft wrote:
Mon Feb 05, 2018 7:19 pm
Jacobkg wrote:
Mon Feb 05, 2018 5:35 pm
Can someone remind me what course of action is recommended by the proponents of the RBD philosophy?
Check your rebalancing bands before the market closes with current estimates of your mutual fund expected closing NAVs based on current prices of the corresponding ETFs.
-or-
Check this evening your rebalancing bands.

If you need to rebalance, then rebalance.

That's it.
Huh. That's it? That's all there is to employing the fabled RBD System of market timing? You can even wait until the market closes, then just check rebalancing bands?

This sure seems anticlimactic, hardly worthy of an "alert." In the worst case scenario — say someone doesn't get the alert in time — the market pushes the asset allocations back within rebalancing bands and the investor misses an opportunity to bump up their trade count. (Of course, that could also end up being a better than rebalancing immediately if the market continues in the same direction the following day.)
"Discipline matters more than allocation.” ─William Bernstein

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AtlasShrugged?
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Re: RBD alert [Really Bad Day]

Post by AtlasShrugged? » Tue Feb 06, 2018 7:59 am

Can someone remind me what course of action is recommended by the proponents of the RBD philosophy?
RBD Philosophy? WTH is that? Can you articulate it, because I am now genuinely curious. :shock:

If the futures are correct, today will be another RBD. After a rebalance yesterday, I ramped up my FXSIX contribution to maintain my overall stock/bond allocation. White Coat Investor said it all....Today, my 401K contribution will be made. I am buying the S&P at a discount. Sounds like a pretty good deal to me. :mrgreen:
“If you don't know, the thing to do is not to get scared, but to learn.”

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Re: RBD alert [Really Bad Day]

Post by rkhusky » Tue Feb 06, 2018 8:02 am

JCE66 wrote:
Tue Feb 06, 2018 7:59 am
I am buying the S&P at a discount. Sounds like a pretty good deal to me. :mrgreen:
You might be, if the market goes back up. There is no guarantee of that. Or the market could drop another 40% before it goes back up.

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AtlasShrugged?
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Re: RBD alert [Really Bad Day]

Post by AtlasShrugged? » Tue Feb 06, 2018 8:10 am

You might be, if the market goes back up. There is no guarantee of that. Or the market could drop another 40% before it goes back up.
rkhusky....With a 15-20 year horizon, I feel pretty confident in stating I am buying the S&P at a discount. But you are right, the future is a total unknown. What I have discovered to my delight is that following your ISP really works. :happy
“If you don't know, the thing to do is not to get scared, but to learn.”

bling
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Re: RBD alert [Really Bad Day]

Post by bling » Tue Feb 06, 2018 8:49 am

through bad luck i bought a whole bunch of stuff 2 weeks ago -- pretty much almost at the market highs. i'm down 7% for all of these positions (total stock, total international, emerging markets). sucks i can't tax loss harvest because the wash sale applies to buys 30 days before the sale.

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Re: RBD alert [Really Bad Day]

Post by ryman554 » Tue Feb 06, 2018 9:03 am

mariezzz wrote:
Mon Feb 05, 2018 9:46 pm
The psychological reaction I'm seeing is quite interesting. If the stock market had ended 2017 a little lower (about 6% lower) and we have gained 1-2% in 2018, to end up precisely where we are today, Feb. 5 2018, we'd all be happy.

Instead, we had a ridiculously exuberant January - we all knew that (following a very good 2017), and then the market dropped over the last week. And now we're anxious.

I'm staying focused on how much I've gained since Jan 1 2017. With the ups, come downs.
I'm with you.

I enjoyed the ride up this last 15 months or so. Staring at those nice green numbers is sooooo soothing.

And then this week. Bad all around for me, and not just in the stock market. Showed my wife the really big red number on friday. (first time for me to see it in the 5 figures!) We both shrugged. Then I showed her the even bigger red number yesterday. Here's what we both said. "oof".

Yup, "oof".

And then we had a good day.

Our AA is just fine, but my 2 comma membership may not be. Still, like Fido Advantage shares, or whatever they are called, once you're in and have your card, I guess you're grandfathered, right? =)

Da5id
Posts: 2059
Joined: Fri Feb 26, 2016 8:20 am

Re: RBD alert [Really Bad Day]

Post by Da5id » Tue Feb 06, 2018 9:06 am

mariezzz wrote:
Mon Feb 05, 2018 9:46 pm
The psychological reaction I'm seeing is quite interesting. If the stock market had ended 2017 a little lower (about 6% lower) and we have gained 1-2% in 2018, to end up precisely where we are today, Feb. 5 2018, we'd all be happy.
Loss aversion. Recency bias. All real psychological phenomena. An important part of having a plan we believe in is to fight our all too human weaknesses.

mptfan
Posts: 4722
Joined: Mon Mar 05, 2007 9:58 am

Re: RBD alert [Really Bad Day]

Post by mptfan » Tue Feb 06, 2018 9:09 am

JCE66 wrote:
Tue Feb 06, 2018 8:10 am
What I have discovered to my delight is that following your ISP really works. :happy
I assume you meant IPS? I hope you are not following your internet service provider around all day.

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AtlasShrugged?
Posts: 608
Joined: Wed Jul 15, 2015 6:08 pm

Re: RBD alert [Really Bad Day]

Post by AtlasShrugged? » Tue Feb 06, 2018 9:10 am

I assume you meant IPS? I hope you are not following your internet service provider around all day.
LOL, yes. I must have fat-fingered that. Need more coffee. :happy
“If you don't know, the thing to do is not to get scared, but to learn.”

livesoft
Posts: 62776
Joined: Thu Mar 01, 2007 8:00 pm

Re: RBD alert [Really Bad Day]

Post by livesoft » Tue Feb 06, 2018 9:14 am

bling wrote:
Tue Feb 06, 2018 8:49 am
through bad luck i bought a whole bunch of stuff 2 weeks ago -- pretty much almost at the market highs. i'm down 7% for all of these positions (total stock, total international, emerging markets). sucks i can't tax loss harvest because the wash sale applies to buys 30 days before the sale.
You misunderstand the wash sale rules. I'd be TLHing later today for sure if I had bought stuff 2 weeks ago.
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tigerdoc93
Posts: 135
Joined: Wed Oct 07, 2015 8:50 pm

Re: RBD alert [Really Bad Day]

Post by tigerdoc93 » Tue Feb 06, 2018 9:20 am

Bling: I’m definitely not an expert but I believe you can tax loss harvest in the scenario you presented without triggering a wash sale b/c you’re not buying REPLACEMENT shares. Hopefully a BH with more knowledge with wash sales will chime in soon. Also remember even if wash sale is triggered it’s not illegal.

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