smitcat,smitcat wrote: ↑Wed Jul 03, 2019 12:26 pmFWIW - we saw little difference going thru a recession with smaller and larger portfolios.KlangFool wrote: ↑Wed Jul 03, 2019 12:21 pmCoburn,Coburn wrote: ↑Wed Jul 03, 2019 12:13 pmEveryone is different, but to me I see little difference betwenn B and C just based on employment and net worth and enduring a recession. IOW, if you went thru a recession as B, then facing a recession as C...should not be drastically different.KlangFool wrote: ↑Wed Jul 03, 2019 9:47 amfortyofforty,fortyofforty wrote: ↑Wed Jul 03, 2019 7:46 amGood points, nedsaid.
One other thing I'll add. There is nothing - NOTHING - that can adequately prepare you for a deep, severe bear market. Nor is there anything that can truly predict how you will react to your first one. They are terrible. Until you live through one or two, you cannot truly prepare yourself psychologically. As Mike Tyson famously said, "Everyone has a plan until they get punched in the mouth."
I disagreed that a person can be prepared psychologically. This is true even if they went through a few. I had been experienced this myself. The reason is each experience is different depending on the person's portfolio size and employment situation at that time.
The following experiences are different.
A) Going through a recession with full employment and complete job security and a small portfolio
B) Going through a recession with unemployment and 500K portfolio
C) Going through a recession with unemployment and 1 million portfolio
Just because someone went through the previous recession with a portfolio of 500K, it does not mean the person is prepared with a portfolio of 1 to 2 million.
Just to complete your post. Is your opinion based on actual experience or it is just your belief with no actual experience?
My belief is based on my actual first-hand experience.
Just to complete your post.
A) Do you have job security in both cases?
B) Small and large portfolio in some relative sizes. For example, small = 1 year of expense. Large = 20 years of expense.