How to deal with regret

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Lauretta
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How to deal with regret

Post by Lauretta »

About one year ago I invested quite a large sum of money in stocks over a few month period. Now I am seeing the gains being rapidly wiped out and I fear that I will soon begin to see some losses.
I won't need the money for many years and I have quite a lot left in cash and cash-like products, so what happens in the next few months doesn't matter much, except for the fact that if there is a huge drop it means that I could have bought those stocks much cheaper... So I am feeling regret and I am beginning to feel stupid... :(
Have you experienced investing a big sum not long before a market correction/bear market and do you have tips on how to deal (pychologically) with regret? (I know that rationally one can argue there's no sure way of timing the market, but one can still feel stupid when investing a significant amount of money not long before a correction/crash).
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flamesabers
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Re: How to deal with regret

Post by flamesabers »

Lauretta wrote: Thu Feb 08, 2018 1:57 pmHave you experienced investing a big sum not long before a market correction/bear market and do you have tips on how to deal (pychologically) with regret? (I know that rationally one can argue there's no sure way of timing the market, but one can still feel stupid when investing a significant amount of money not long before a correction/crash).
Perhaps the best way to deal with regret in this context is to accept the ups and downs of the market and move on to other matters. To help facilitate this process I would suggest viewing your portfolio less often so that you have fewer opportunities to berate yourself for not being able to time the market.
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GerryL
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Re: How to deal with regret

Post by GerryL »

Buyer's remorse is common, especially when you are doing something "new."
You know that you won't need the money for many years. You also know that you can't turn back the clock. So, you can only learn to stop fretting about things you can't change and get on with life.

If you want stories of experiences ...
My very first investment was in a stock mutual fund that I selected from a Consumer Reports article that advised about the importance of keeping costs low. In the early 1990s I put all of my IRA $$ into Dodge & Cox Stock fund, and, of course, worried about the week to week changes and wondered if I had done the right thing -- for a long time. But what would I do differently? I didn't know. I ended up with a job with a 401k and never added another penny to the IRA. After a little more than 20 years (and multiple market gyrations), the original ~$23k had grown to almost $200k.

Don't feel stupid. Remember that regarding when the market is going to go up or down: Nobody knows nuthin'. Embrace your ignorance.
RRAAYY3
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Re: How to deal with regret

Post by RRAAYY3 »

my buddy on wallstreet refers to the market as "BS" constantly ... it makes no sense - it just tends to go up overtime so whatever.

if you start seeing losses, don't panic, buy more and look at it as buying for cheaper. I just put in about 10K in int'l - it's pretty much been cut in half in like a week. whatever, I'm buying more and waiting 20 years. it'll work out.

don't beat yourself up. you have cash sitting, put it to work if you dont need it short term.
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Re: How to deal with regret

Post by HongKonger »

My best friend lump summed her entire life savings into the market 10 days ago. She is 60. I have forbidden her from looking at the figures or listening to the news until I tell her.

Remember that you have not incurred any losses until you actually sell. Be grateful you have cash enough that you don't need to sell at a price lower than you paid.

Do you regret not buying in 2008? This is a blip in the long term scheme of things. Tune out to the noise and get on with life.

Je ne regrette rien.
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cfs
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Re: How to deal with regret

Post by cfs »

Lauretta wrote: Thu Feb 08, 2018 1:57 pm . . . I won't need the money for many years and I have quite a lot left in cash and cash-like products . . .
"When everyone is thinking the same, no one is thinking at all" is a good signature. My recommendation to anyone in the same situation is DO NOT SELL. Your money, your portfolio, your decision. Thanks for reading ~cfs~
~ Member of the Active Retired Force since 2014 ~
Cycle
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Re: How to deal with regret

Post by Cycle »

I keep a list of times I was wrong or overvalued something. Some are financial, others career related. The cost of those mistakes is similar to paying for education. In the long run I think the mistakes will result in a net benefit, both financially and wrt free time, health and happiness
Never look back unless you are planning to go that way
PDX_Traveler
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Re: How to deal with regret

Post by PDX_Traveler »

Also worth remembering, the IRS does offer tax-loss harvesting as a salve to some of the pain. If you do run into (short term) losses, you could harvest those and re-invest a month later in the same funds. Just another thought...
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Re: How to deal with regret

Post by jebmke »

Once I have unrealized losses in my taxable account I harvest them. It provides some sense of "doing something" without impacting our investment strategy.
Don't trust me, look it up. https://www.irs.gov/forms-instructions-and-publications
arsenalfan
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Re: How to deal with regret

Post by arsenalfan »

Stop peeking at portfolio and get on with your life.
alex_686
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Re: How to deal with regret

Post by alex_686 »

Sort out the difference between logic and emotions.

You knew that stocks were risky when you invested. Have you incorporated new theoretical or pragmatic methods of handling risk? Do you think that the level of risk has shifted because of the big downwards moves? Have you had to revise your goals or market expectations? These are legitimate reasons to change your asset allocation.

Or is this a irrational reaction to a normal blood bath that happens every so often? The standard Boblehead refrain is to "stay the course". In times of stress I return to this. Have you come here to be talked off of the ledge? Or has this downturn realized that you don't have the "willingness" to take large risks. Remember, when determining your risk tolerance there is the ability and willingness to take risk. Willingness is often untested until times of stress. If so, update your IPS and recognize that this is part of your emotional makeup.
Former brokerage operations & mutual fund accountant. I hate risk, which is why I study and embrace it.
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TinyElvis
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Re: How to deal with regret

Post by TinyElvis »

Lauretta wrote: Thu Feb 08, 2018 1:57 pm About one year ago I invested quite a large sum of money in stocks over a few month period. Now I am seeing the gains being rapidly wiped out and I fear that I will soon begin to see some losses.
What did you invest in? My gains for the past year are nowhere close to being "wiped out".
"Give a cat a fish and it will eat for a day. Teach a cat to fish and it will just sit there waiting for you to give it a fish."
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ray.james
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Re: How to deal with regret

Post by ray.james »

Lauretta,

What you are feeling is natural and many investors face as they graduate to emotional investing maturity.

For me, I remember 1 thing:
- expectations vs reality
I remember a good number target in x Years. As long as I am on journey I am fine. Its a marathon, sometimes it runs faster than average and sometimes slower than average to " that" end number.
Focus on other aspects of life to avoid constant checking.
When in doubt, http://www.bogleheads.org/forum/viewtopic.php?f=1&t=79939
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Lauretta
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Re: How to deal with regret

Post by Lauretta »

alex_686 wrote: Thu Feb 08, 2018 2:27 pm Have you incorporated new theoretical or pragmatic methods of handling risk? Do you think that the level of risk has shifted because of the big downwards moves? Have you had to revise your goals or market expectations? These are legitimate reasons to change your asset allocation.
No, I think I might just be a bit depressed... :( Anyway, concerning the methods of handling risk, I have studied dual momentum (though I have many doubts about it); I could indeed sell some Etfs if the 12 month momentum turns negative, but here in Europe at least the ones I use have a pretty big bid ask spread which I think adds to the inefficiency of the strategy.
I'll probably just hold what I've got - compared to what I've seen on this website I probably have less stocks in my AA than most people here. The stupid thing is that I bought most of them last year... :(
Anyway, thank you, and everyone else who has responded with useful advice and encouragement :happy
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PVW
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Re: How to deal with regret

Post by PVW »

I did it the other way. I sold some incentive stock options early last year for about $50K. If I'd waited a year, I could have sold them for about $120K.

But what can you do? Just grin and bear it. I don't let it affect my behavior going forward and there is no chance of correcting that mistake. Who knows, maybe next year the ISOs will be under water.

Part of being a Boglehead is that you take what the market gives you. It helps remove buyer's remorse because you stick to a plan and you're not actively making decisions that can turn out to be mistakes. If the stress is too much then maybe your plan is a mistake and it needs to be changed - but don't let the market swings affect the plan.
stocknoob4111
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Re: How to deal with regret

Post by stocknoob4111 »

regret? I invested a few hundred thousand on Jan 5, i'm down about $25,000 so far. And no I'm not some rich guy just working class. I will ride it out. I know in a few years it will pan out. I am hoping 100 years of history is on my side.
Last edited by stocknoob4111 on Thu Feb 08, 2018 2:42 pm, edited 1 time in total.
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Lauretta
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Re: How to deal with regret

Post by Lauretta »

TinyElvis wrote: Thu Feb 08, 2018 2:29 pm
Lauretta wrote: Thu Feb 08, 2018 1:57 pm About one year ago I invested quite a large sum of money in stocks over a few month period. Now I am seeing the gains being rapidly wiped out and I fear that I will soon begin to see some losses.
What did you invest in? My gains for the past year are nowhere close to being "wiped out".
I'm in Europe, so for example my US stocks are having their gains nearly wiped out in euro terms, because of the dollar weakening (and I didn't currecy hedge).
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Re: How to deal with regret

Post by VictoriaF »

Whenever you feel regret, listen to Edith Piaf Non, Je ne regrette rien, https://www.youtube.com/watch?v=Q3Kvu6Kgp88

Cheers,
Victoria
Inventor of the Bogleheads Secret Handshake | Winner of the 2015 Boglehead Contest. | Every joke has a bit of a joke. ... The rest is the truth. (Marat F)
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warner25
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Re: How to deal with regret

Post by warner25 »

I've thought a lot about dealing with regret over the past year in other contexts, and I did invest my first large sum of money (at the time, for me) right before the 2008-2009 crash. The best coping mechanism I've found is simply to stay immersed in other things so I don't have the time or energy to dwell on regrets. I've still not found a way to think about regrets without feeling anguish all over again. Just dive into some challenging work, or a new hobby, or a book, etc. Time passes and hopefully when we look up again things have turned out OK*, like GerryL said. Ask yourself, in another year, do you want to look back on all the time and energy you spent dwelling on something bad, or do you want to have achieved/created/done a bunch of good things? So do those good things instead.

* Ok, but never perfect. It's maybe unique to investing that we can so easily calculate where we'd be today if we'd only bought and sold the right things at the right time. What if we held more or less equity in our asset allocation, what if we didn't start investing until March 2009, what if we bet everything on bitcoin in 2009**? Nobody can make all the perfect moves, so we'd all drive ourselves crazy thinking about the money we could have had.

** $56 million if we did that and continued "investing" our savings in bitcoin since then, even with the recent crash. $132 million at the peak...
ryman554
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Re: How to deal with regret

Post by ryman554 »

Lauretta wrote: Thu Feb 08, 2018 1:57 pm About one year ago I invested quite a large sum of money in stocks over a few month period. Now I am seeing the gains being rapidly wiped out and I fear that I will soon begin to see some losses.
Lauretta:

In the past months, you have come on here asking (pumping?) about bitcoin, discussing (advocating?) the subtleties of "mechanical" (aka, factor) investing, and are now worried about losses in equities.

I get the distinct impression that you know just enough to be dangerous to yourself. You're eager to invest, but it also seems to me you are easily distracted by the latest fad you may have read about.

SLOW DOWN.

The premise of boglehead investing is that nobody knows anything. Read all the financial stuff you want, but if you get a "great idea", then it's almost certain the people smarter than I (and you!) have thought of it, too, and have likely already made the easy money.

I told you this once before in a different way -- the key to getting ahead is being average. Don't pick and choose. Don't try to time. Above all, don't try to get rich quick. Just invest in the world and you will be fine.

Yes, there are nuances, but, really these nuances are noise to the overall strategy of diversification.

So, SLOW DOWN.

You need a plan. To get a plan, you need to outline your goals. What do you need your money for and when?

SLOW DOWN.

Take a breath and post your current financial situation (holdings and income and monthly expenses). Figure out where you want to be financially in 5, 10, 15, 20 years. And then post your plan for getting there. One thread. I bet you'll get lots of helpful advice and support, and this advice will help you deal with any regrets you have today or going forward.

ps. How am I dealing with the "downturn"? I can say that I'm not particularly happy about it. But I do get a chuckle every time I look at the big red numbers. Just like in 2008.
pejp
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Re: How to deal with regret

Post by pejp »

I altered my allocation 2 weeks ago from a 60% EQ/40% FI to 90% EQ. I'm 35, so I have a good 25 years before I need it. I experienced a slight uneasy feeling when I saw the $ amount I've dropped in the last week, but I've been reading a lot about boglehead investing over the last few months, and it's really helped. Now I'm thinking 'great, I'll be buying stocks more cheaply with my next 401k contribution'. If you accept that you don't really know anything, and that market timing is pointless, and that you only have money in the market that you don't need for a while, I think you can just sit back and relax.
riverguy
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Re: How to deal with regret

Post by riverguy »

HongKonger wrote: Thu Feb 08, 2018 2:19 pm My best friend lump summed her entire life savings into the market 10 days ago. She is 60. I have forbidden her from looking at the figures or listening to the news until I tell her.

Remember that you have not incurred any losses until you actually sell. Be grateful you have cash enough that you don't need to sell at a price lower than you paid.
Seems like a great idea to go all in stocks at an all time high at age 60.

No losses until you sell but people also forget that you have no gains until you actually sell.
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Re: How to deal with regret

Post by Golf maniac »

I have lived through every down market and crash since 1987. In those 30 years there have been a lot of downs and it is easy to feel “stupid”. You need to stay the course, continue to invest and let the market work. In the long term you will be fine and look like a genius in 30 years. Let the losers sell in a down market and buy in an up market trying to time the market.
Fallible
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Re: How to deal with regret

Post by Fallible »

ryman554 wrote: Thu Feb 08, 2018 3:25 pm
Lauretta wrote: Thu Feb 08, 2018 1:57 pm About one year ago I invested quite a large sum of money in stocks over a few month period. Now I am seeing the gains being rapidly wiped out and I fear that I will soon begin to see some losses.
Lauretta:

In the past months, you have come on here asking (pumping?) about bitcoin, discussing (advocating?) the subtleties of "mechanical" (aka, factor) investing, and are now worried about losses in equities.

I get the distinct impression that you know just enough to be dangerous to yourself. You're eager to invest, but it also seems to me you are easily distracted by the latest fad you may have read about.

SLOW DOWN.

The premise of boglehead investing is that nobody knows anything. Read all the financial stuff you want, but if you get a "great idea", then it's almost certain the people smarter than I (and you!) have thought of it, too, and have likely already made the easy money.

I told you this once before in a different way -- the key to getting ahead is being average. Don't pick and choose. Don't try to time. Above all, don't try to get rich quick. Just invest in the world and you will be fine.

Yes, there are nuances, but, really these nuances are noise to the overall strategy of diversification.

So, SLOW DOWN.

You need a plan. To get a plan, you need to outline your goals. What do you need your money for and when?

SLOW DOWN.

Take a breath and post your current financial situation (holdings and income and monthly expenses). Figure out where you want to be financially in 5, 10, 15, 20 years. And then post your plan for getting there. One thread. I bet you'll get lots of helpful advice and support, and this advice will help you deal with any regrets you have today or going forward. ...
I second this excellent advice, especially "SLOW DOWN."

Also, the OP should take a look at the wiki's "Behavioral pitfalls" page, which includes "Regret Aversion" and a reading list.

https://www.bogleheads.org/wiki/Behavioral_pitfalls
https://www.bogleheads.org/wiki/Behavio ... t_aversion
"Yes, investing is simple. But it is not easy, for it requires discipline, patience, steadfastness, and that most uncommon of all gifts, common sense." ~Jack Bogle
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Lauretta
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Re: How to deal with regret

Post by Lauretta »

ryman554 wrote: Thu Feb 08, 2018 3:25 pm
I get the distinct impression that you know just enough to be dangerous to yourself.


Take a breath and post your current financial situation (holdings and income and monthly expenses). Figure out where you want to be financially in 5, 10, 15, 20 years. And then post your plan for getting there. One thread. I bet you'll get lots of helpful advice and support, and this advice will help you deal with any regrets you have today or going forward.

Yes perhaps you are right, I might be a danger to myself; in any case the characters in Celine's books who seem to get themselves into trouble on purpose always had a strange fascination for me.
Yes I could post a question in the standard format; the trouble is that in Italy the tax rules, typical expenses etc are quite different from the US. Anyway I think I'll do that as I can probably get useful guidance anyway.
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H-Town
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Re: How to deal with regret

Post by H-Town »

Lauretta wrote: Thu Feb 08, 2018 1:57 pm About one year ago I invested quite a large sum of money in stocks over a few month period. Now I am seeing the gains being rapidly wiped out and I fear that I will soon begin to see some losses.
I won't need the money for many years and I have quite a lot left in cash and cash-like products, so what happens in the next few months doesn't matter much, except for the fact that if there is a huge drop it means that I could have bought those stocks much cheaper... So I am feeling regret and I am beginning to feel stupid... :(
Have you experienced investing a big sum not long before a market correction/bear market and do you have tips on how to deal (pychologically) with regret? (I know that rationally one can argue there's no sure way of timing the market, but one can still feel stupid when investing a significant amount of money not long before a correction/crash).
It's simple. Control your emotions and be cold and calculated.
Time is the ultimate currency.
DrGoogle2017
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Re: How to deal with regret

Post by DrGoogle2017 »

Regrets, I have a few, but too few to mention. Haha, I hope I get the lyrics right.
I also like the song by Edith Piaf too. OP, there is nothing you can do. Just don’t sell. They will be back up.
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Re: How to deal with regret

Post by BolderBoy »

Lauretta wrote: Thu Feb 08, 2018 1:57 pmexcept for the fact that if there is a huge drop it means that I could have bought those stocks much cheaper... So I am feeling regret and I am beginning to feel stupid... :(
Woulda, coulda, shoulda...

The investing isn't stupid. If you were to now bail out, that would be stupid.

And a lot of people are doing just that - bailing out. Stupid.

If you are truly getting fretful, then your AA isn't set right. Don't fix it now, wait...
"Never underestimate one's capacity to overestimate one's abilities" - The Dunning-Kruger Effect
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Meaty
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Re: How to deal with regret

Post by Meaty »

Lauretta wrote: Thu Feb 08, 2018 1:57 pm About one year ago I invested quite a large sum of money in stocks over a few month period. Now I am seeing the gains being rapidly wiped out and I fear that I will soon begin to see some losses.
I won't need the money for many years and I have quite a lot left in cash and cash-like products, so what happens in the next few months doesn't matter much, except for the fact that if there is a huge drop it means that I could have bought those stocks much cheaper... So I am feeling regret and I am beginning to feel stupid... :(
Have you experienced investing a big sum not long before a market correction/bear market and do you have tips on how to deal (pychologically) with regret? (I know that rationally one can argue there's no sure way of timing the market, but one can still feel stupid when investing a significant amount of money not long before a correction/crash).
Regret in of itself is worthless. The only value in regret is what you learn from it. In this case, you can’t learn anything because knowing when to buy/sell is unknowable. The only potential action is to evaluate if your AA really aligns with your emotional ability to take risk
"Discipline equals Freedom" - Jocko Willink
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Re: How to deal with regret

Post by livesoft »

PDX_Traveler wrote: Thu Feb 08, 2018 2:24 pm Also worth remembering, the IRS does offer tax-loss harvesting as a salve to some of the pain. If you do run into (short term) losses, you could harvest those and re-invest a month later in the same funds. Just another thought...
Yes, tax-loss harvesting is the way to deal with regret. Get other taxpayers to help pay for your losses.
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Pajamas
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Re: How to deal with regret

Post by Pajamas »

You have to make decisions in life. If you made the best decision that you could at the time given the circumstances, then there is no real reason to regret it. You can only move forward through time. You can change what you do in the future but not what you did in the past. :beer
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nps
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Re: How to deal with regret

Post by nps »

RRAAYY3 wrote: Thu Feb 08, 2018 2:18 pm I just put in about 10K in int'l - it's pretty much been cut in half in like a week.
What are you talking about?
flyfishing
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Re: How to deal with regret

Post by flyfishing »

I know this is a financial column- but regret should be about not spending time with a loved one; not enjoying the beauties of nature; missing a child's event because one thought work was more important.. We all need a life- its not all about money. If ones biggest regret is about the lost opportunity to make more money- how sad.
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Re: How to deal with regret

Post by RRAAYY3 »

nps wrote: Thu Feb 08, 2018 4:54 pm
RRAAYY3 wrote: Thu Feb 08, 2018 2:18 pm I just put in about 10K in int'l - it's pretty much been cut in half in like a week.
What are you talking about?
A recent market downturn
ROIGuy
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Re: How to deal with regret

Post by ROIGuy »

You said that you will not need this money for many years; I will assume you are talking 20-30 year time horizon.
With that in mind, do you think in 20-30 years the market and the funds you invested in will be higher then? If yes, stop staring at your computer and go enjoy your life!
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bottlecap
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Re: How to deal with regret

Post by bottlecap »

As they say, "Suck it up, Buttercup."

I'm only half-joking.

I understand your feelings.

But if you came to the right asset allocation when you invested and did not invest money you need in the next ten years, both of which should be true, this is the price of investing. Markets do not always go up.

Nobody likes it. I've lost a lot of money in the last week. Like nearly-yearly salary money. It doesn't make it any less real that it's been in the market longer than a year.

But I've been through this before. I know my allocation is okay. I know I don't need the money for 10+ years. Hopefully 20+ years.

So I've learned to let the market do it's thing. You will too, eventually.

Good luck,

JT

P.S. If you didn't think out your allocation in the first place and have serious doubts about it now, then you should consider changing it. But not because of the recent downturn. The downturn will change to an upturn at some point. If you are more risk-averse than you thought, that probably won't change as you get older.
CantPassAgain
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Re: How to deal with regret

Post by CantPassAgain »

RRAAYY3 wrote: Thu Feb 08, 2018 5:08 pm
nps wrote: Thu Feb 08, 2018 4:54 pm
RRAAYY3 wrote: Thu Feb 08, 2018 2:18 pm I just put in about 10K in int'l - it's pretty much been cut in half in like a week.
What are you talking about?
A recent market downturn
What international stock fund is down 50% in the last week?
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Lauretta
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Re: How to deal with regret

Post by Lauretta »

bottlecap wrote: Thu Feb 08, 2018 5:38 pm
If you didn't think out your allocation in the first place and have serious doubts about it now, then you should consider changing it. But not because of the recent downturn. The downturn will change to an upturn at some point. If you are more risk-averse than you thought, that probably won't change as you get older.
Yes but for me in Italy it's complicated to evaluate risk; I have 55% stocks and 45% cash, and no bonds because bonds have negative yields in the EU (for shorter maturities) and there's some defaut risk in some governements. So actually stocks are probably less risky than the other assets in the long term here, because of the risk in bonds I mentioned and because cash is eroded by inflation.
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Re: How to deal with regret

Post by whodidntante »

When I buy a lot in a lump sum, I just assume the market will drop like a rock. I also assume that I'll be just fine.

Markets can have impressively steep drops but don't really seem to go up with the same fervor. I think it's because people get scared, so they wait and see, which increases selling pressure, so they wait and see some more. It takes a while to get all the weak hands to fold so the market can go up again.
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Re: How to deal with regret

Post by stemikger »

Over the long term you will lose much more in cash, it just won't feel the same. In 10 years, you would be glad you own stocks instead of any other type of investment. You have to start thinking like the greats, read Warren Buffett's Letters to Shareholders and once you get it, you won't care what the market does and just be happy you own American Businesses that create value over time.

Now, if that ever stops, having loses in your portfolio will be the least of our worries. Stay the Course!!
Choose Simplicity ~ Stay the Course!! ~ Press on Regardless!!!
RRAAYY3
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Re: How to deal with regret

Post by RRAAYY3 »

CantPassAgain wrote: Thu Feb 08, 2018 5:56 pm
RRAAYY3 wrote: Thu Feb 08, 2018 5:08 pm
nps wrote: Thu Feb 08, 2018 4:54 pm
RRAAYY3 wrote: Thu Feb 08, 2018 2:18 pm I just put in about 10K in int'l - it's pretty much been cut in half in like a week.
What are you talking about?
A recent market downturn
What international stock fund is down 50% in the last week?
none i was just trying to make the OP feel better. 10% drop over the last week hasn't been fun either - but oh well I buy more.
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Lauretta
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Re: How to deal with regret

Post by Lauretta »

whodidntante wrote: Thu Feb 08, 2018 6:11 pm
Markets can have impressively steep drops but don't really seem to go up with the same fervor.
exactly, I was thinking of this earlier
When everyone is thinking the same, no one is thinking at all
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Re: How to deal with regret

Post by Lauretta »

RRAAYY3 wrote: Thu Feb 08, 2018 6:14 pm
CantPassAgain wrote: Thu Feb 08, 2018 5:56 pm
RRAAYY3 wrote: Thu Feb 08, 2018 5:08 pm
nps wrote: Thu Feb 08, 2018 4:54 pm
RRAAYY3 wrote: Thu Feb 08, 2018 2:18 pm I just put in about 10K in int'l - it's pretty much been cut in half in like a week.
What are you talking about?
A recent market downturn
What international stock fund is down 50% in the last week?
none i was just trying to make the OP feel better. 10% drop over the last week hasn't been fun either - but oh well I buy more.
haha :D you didn't have to exaggerate in order to try to make me feel better. But I understand the idea, in Italy there's a saying: 'Mal comune, mezzo gaudio'...(A trouble shared is a trouble halved)
When everyone is thinking the same, no one is thinking at all
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Re: How to deal with regret

Post by RRAAYY3 »

Lauretta wrote: Thu Feb 08, 2018 6:16 pm
RRAAYY3 wrote: Thu Feb 08, 2018 6:14 pm
CantPassAgain wrote: Thu Feb 08, 2018 5:56 pm
RRAAYY3 wrote: Thu Feb 08, 2018 5:08 pm
nps wrote: Thu Feb 08, 2018 4:54 pm

What are you talking about?
A recent market downturn
What international stock fund is down 50% in the last week?
none i was just trying to make the OP feel better. 10% drop over the last week hasn't been fun either - but oh well I buy more.
haha :D you didn't have to exaggerate in order to try to make me feel better. But I understand the idea, in Italy there's a saying: 'Mal comune, mezzo gaudio'...
the point: look at downturns as a chance to buy more for cheaper rather than doom n gloom sky falling or regret. NOBODY knows how to time markets.

[i love italy, by the way.]
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Re: How to deal with regret

Post by MNS CA »

HongKonger wrote: Thu Feb 08, 2018 2:19 pm My best friend lump summed her entire life savings into the market 10 days ago. She is 60. I have forbidden her from looking at the figures or listening to the news until I tell her.

Remember that you have not incurred any losses until you actually sell. Be grateful you have cash enough that you don't need to sell at a price lower than you paid.

Do you regret not buying in 2008? This is a blip in the long term scheme of things. Tune out to the noise and get on with life.

Je ne regrette rien.
In 2008, Shiller PE was down to 15. Right now it's above 30. Stocks may be down, but they're still not a bargain.
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Re: How to deal with regret

Post by Lauretta »

MNS CA wrote: Thu Feb 08, 2018 6:21 pm
HongKonger wrote: Thu Feb 08, 2018 2:19 pm My best friend lump summed her entire life savings into the market 10 days ago. She is 60. I have forbidden her from looking at the figures or listening to the news until I tell her.

Remember that you have not incurred any losses until you actually sell. Be grateful you have cash enough that you don't need to sell at a price lower than you paid.

Do you regret not buying in 2008? This is a blip in the long term scheme of things. Tune out to the noise and get on with life.

Je ne regrette rien.
In 2008, Shiller PE was down to 15. Right now it's above 30. Stocks may be down, but they're still not a bargain.
yes but they say you cannot time using Shiller's ratio because markets can stay overpriced for a long time, some people think the ratio has moved permanently higher.
When everyone is thinking the same, no one is thinking at all
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Re: How to deal with regret

Post by MNS CA »

Lauretta wrote: Thu Feb 08, 2018 6:23 pm
MNS CA wrote: Thu Feb 08, 2018 6:21 pm
HongKonger wrote: Thu Feb 08, 2018 2:19 pm My best friend lump summed her entire life savings into the market 10 days ago. She is 60. I have forbidden her from looking at the figures or listening to the news until I tell her.

Remember that you have not incurred any losses until you actually sell. Be grateful you have cash enough that you don't need to sell at a price lower than you paid.

Do you regret not buying in 2008? This is a blip in the long term scheme of things. Tune out to the noise and get on with life.

Je ne regrette rien.
In 2008, Shiller PE was down to 15. Right now it's above 30. Stocks may be down, but they're still not a bargain.
yes but they say you cannot time using Shiller's ratio because markets can stay overpriced for a long time, some people think the ratio has moved permanently higher.
You probably can't wait for Shiller PE to get back down to 15 again. At 20 or even 25, I'd buy. But when it's above 30? I'm not so sure that you can't reduce your stock allocation a bit at that point and come out ahead.
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Re: How to deal with regret

Post by RRAAYY3 »

shiller is irrelevant ... times have changed ... if you have a lot of cash on hand, wait until you start suffering losses and then BUY BUY BUY

get shares for cheaper, reduce your cost basis, and then - wait.
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Re: How to deal with regret

Post by Lauretta »

MNS CA wrote: Thu Feb 08, 2018 6:25 pm
Lauretta wrote: Thu Feb 08, 2018 6:23 pm
MNS CA wrote: Thu Feb 08, 2018 6:21 pm
HongKonger wrote: Thu Feb 08, 2018 2:19 pm My best friend lump summed her entire life savings into the market 10 days ago. She is 60. I have forbidden her from looking at the figures or listening to the news until I tell her.

Remember that you have not incurred any losses until you actually sell. Be grateful you have cash enough that you don't need to sell at a price lower than you paid.

Do you regret not buying in 2008? This is a blip in the long term scheme of things. Tune out to the noise and get on with life.

Je ne regrette rien.
In 2008, Shiller PE was down to 15. Right now it's above 30. Stocks may be down, but they're still not a bargain.
yes but they say you cannot time using Shiller's ratio because markets can stay overpriced for a long time, some people think the ratio has moved permanently higher.
You probably can't wait for Shiller PE to get back down to 15 again. At 20 or even 25, I'd buy. But when it's above 30? I'm not so sure that you can't reduce your stock allocation a bit at that point and come out ahead.
yes I have overweighed EM and Europe and underweighed the US also because of CAPE considerations
When everyone is thinking the same, no one is thinking at all
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Re: How to deal with regret

Post by Agggm »

Lauretta wrote: Thu Feb 08, 2018 1:57 pm About one year ago I invested quite a large sum of money in stocks over a few month period. Now I am seeing the gains being rapidly wiped out and I fear that I will soon begin to see some losses.
I won't need the money for many years and I have quite a lot left in cash and cash-like products, so what happens in the next few months doesn't matter much, except for the fact that if there is a huge drop it means that I could have bought those stocks much cheaper... So I am feeling regret and I am beginning to feel stupid... :(
Have you experienced investing a big sum not long before a market correction/bear market and do you have tips on how to deal (pychologically) with regret? (I know that rationally one can argue there's no sure way of timing the market, but one can still feel stupid when investing a significant amount of money not long before a correction/crash).
Pay it no mind. Invest regularly and enjoy life as best you can within your means.
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