Stay the course - socially responsible?

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Rex23
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Stay the course - socially responsible?

Post by Rex23 »

In times when markets are dropping, I was wondering if anyone thinks that staying the course is also a socially responsible strategy?
I understand that there will always be greedy people who may try to exploit others, but staying the course sounds like it would also keep the funds available to those that really need them.

After reading the news last week we already see examples of greed vs social responsibility (senators selling stock early on vs companies in different industries producing much needed supplies). I was also thinking that in municipal bond markets, with recent drops, large numbers are selling when likely states do need money at good rates.

Just something that was on my mind last few days and wanted to see if others have any thoughts on this.

thanks
Rex
livesoft
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Re: Stay the course - socially responsible?

Post by livesoft »

I don't think so. Was it socially responsible for me to donate a big chunk of our small-cap value index fund holdings to our DFA before they dropped 43%? I don't think people would think that was socially responsible.
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7eight9
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Re: Stay the course - socially responsible?

Post by 7eight9 »

In the event of an emergency, please put on your oxygen mask before assisting others.
I guess it all could be much worse. | They could be warming up my hearse.
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hisdudeness
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Re: Stay the course - socially responsible?

Post by hisdudeness »

7eight9 wrote: Sun Mar 22, 2020 11:23 am In the event of an emergency, please put on your oxygen mask before assisting others.
Good one, I like that.
:sharebeer
To the OP:
No.
It would also be helpful to everyone except yourself to burn all your dollars, so that everyone else's dollars are worth ever so slightly more in purchasing power.
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watchnerd
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Re: Stay the course - socially responsible?

Post by watchnerd »

Rex23 wrote: Sun Mar 22, 2020 11:14 am keep the funds available to those that really need them.
I'm not understanding this.

How does what I do with my investment portfolio get funds to those who need them?

My Treasury purchases don't go to the needy.

My stock purchases don't go to the needy. They don't even go to the corporations.
70% Global Market Weight Equities | 15% Long Treasuries 15% short TIPS & cash || RSU + ESPP
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Ged
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Re: Stay the course - socially responsible?

Post by Ged »

Doesn't the invocation of the Defense Production Act sort of make this discussion moot?
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Schlabba
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Re: Stay the course - socially responsible?

Post by Schlabba »

Rex23 wrote: Sun Mar 22, 2020 11:14 am In times when markets are dropping, I was wondering if anyone thinks that staying the course is also a socially responsible strategy?
I understand that there will always be greedy people who may try to exploit others, but staying the course sounds like it would also keep the funds available to those that really need them.

After reading the news last week we already see examples of greed vs social responsibility (senators selling stock early on vs companies in different industries producing much needed supplies). I was also thinking that in municipal bond markets, with recent drops, large numbers are selling when likely states do need money at good rates.

Just something that was on my mind last few days and wanted to see if others have any thoughts on this.

thanks
Rex
How do you exploit others in the market? If someone is selling isn't it a voluntary transaction? (assuming they are not selling at gun point).
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jjface
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Re: Stay the course - socially responsible?

Post by jjface »

7eight9 wrote: Sun Mar 22, 2020 11:23 am In the event of an emergency, please put on your oxygen mask before assisting others.
Unless they are out of stock...
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nisiprius
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Re: Stay the course - socially responsible?

Post by nisiprius »

I think it probably is socially responsible to stay the course in a volatile market, in terms of damping down oscillations due to excessive feedback. Similarly, it probably is socially responsible not to buy toilet paper if you have a "normal" amount in your house... as opposed to stocking up an abnormal amount out of fear that everyone else is stocking up out of fear that everyone else is stocking up.

In much the same way, John C. Bogle often described indexing as a way to make sure you got "your fair share" of the profits earned by business, and I sometimes wondered if his use of the word "fair" had an ethical dimension to it.

But I'm not going to act on that notion. And I'm not going to let my family run out of toilet paper if I can help it.

I'm staying the course out of self-interest, or what I think is my own self-interest.

(There is an ideology that seems to argue that you have an ethical duty to try your darndest to get the better of others, but I don't personally belong to it.)
Annual income twenty pounds, annual expenditure nineteen nineteen and six, result happiness; Annual income twenty pounds, annual expenditure twenty pounds ought and six, result misery.
jjface
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Re: Stay the course - socially responsible?

Post by jjface »

I don't see how you can exploit anyone. Some want to get out as they are too afraid so buyers do them a favor by buying. We may consider them cheap stocks but others consider them too hot (or cold?) to handle. We are all in it for ourselves but nothing is socially irresponsible. Hoarding stocks isn't like hoarding toilet paper.

If everyone started to cash out the markets would crash faster. Staying the course and even buying more keeps things a little more stable. Just a little.

I am suspicious of day traders manipulating the market. Such large swings in volatility just feels like some large parties are moving the market to make a profit. It just seems crazy to have 10% loss followed by a 10% gain and then another 10% loss the next day. But that is just my own feelings and probably wrong!
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