Really Bad Day (RBD) Activities

[Hot Sauce]

Awhile back, I read a post about RBDs that laid out the definition and some metrics and do’s/don’ts. Now I can’t find it, despite having used the search. If that sounds familiar, could someone please point me to that?

For some levity during today’s RBD, I read a headline today (9/3/2024) that was captioned:

“Stocks suffer worst day since August.”

[Longdog]

Awhile back, I read a post about RBDs. It laid out the definition and some to-do’s. Could someone please point me to that?

For some levity during today’s RBD, I read a headline today (9/3/2024) that was captioned:

“Stocks suffer worst day since August.”

That is hilarious! On the first trading day of September, stocks are down. OMG whatever shall I do?

[dvvader]

Calculate how much you lost during today’s RBD. Go car shopping for a “fun car” with that amount as your max budget. What kind of wheels can you get?!

And lol at the headline! Sensationalist much?

[muffins14]

Even more concerning is that this is the worst trading day since 9/2. The Muffins14 index was down 98%, or 1,237,847 points.

[Riprap]

Look at the bright side. International stocks outperformed.

[hoofaman]

I will TLH when I have basis below market value, but I only bother doing that when I can harvest at least 5k or so of losses. Even my recent basis from earlier this year is still in the green

[jebmke]

Is 2% an RBD? I forgot what the definition is.

How many of you are old enough to remember (and we’re invested) when there was a 22% RRBD?

[TheTimeLord]

This might help.

viewtopic.php?p=6870119#p6870119

[TheTimeLord]

Calculate how much you lost during today’s RBD. Go car shopping for a “fun car” with that amount as your max budget. What kind of wheels can you get?!

And lol at the headline! Sensationalist much?

I believe he is talking about a trading strategy that is discussed on this forum from time to time.

[Mike Scott]

Not boglehead cannon but the RBD concept has been captured for entertainment purposes:
https://www.gebele.com/charts-and-graphs/rbd-alerts

[greg24]

I'm hoping my monthly 403b contribution is invested at today's prices.

[TomatoTomahto]

I cannot lie: I invested a larger share of last Friday’s paycheck than I ordinarily would have into VTI and VEA. Shame on me!

[well9boy9]

I will TLH when I have basis below market value, but I only bother doing that when I can harvest at least 5k or so of losses. Even my recent basis from earlier this year is still in the green

1K for me.

[Harmanic]

All my investments are still well in the green, so no TLH for me. But I will get a slight discount on today's new contributions.

[magua]

The market is currently higher than it was 2 weeks ago.

I find the Really Bad Day concept to be circular logic. It's like a riddle. When you really boil it down, it goes like this:

1) The market goes up in the long run.
2) Given #1, the best time to buy is now.
3) If the market goes down a lot, then it might be a better time to take action than it was in the past, so you should reconsider #2.

Summary: If the market always goes up in the long run, taking action after a dip is a better time than some other time in the recent past.

It's like a Dr Suess poem. It's an unhelpful riddle of how to think of past/present/future. I would recommend ignoring RBD and only paying attention to #1.

Keep it simple. Stay the course.

[delamer]

Awhile back, I read a post about RBDs that laid out the definition and some metrics and do’s/don’ts. Now I can’t find it, despite having used the search. If that sounds familiar, could someone please point me to that?

For some levity during today’s RBD, I read a headline today (9/3/2024) that was captioned:

“Stocks suffer worst day since August.”

A classic from the financial press!

I wish some news source would use the headline ”Stocks Dropped (or Rose) For No Good Reason Whatsoever Yesterday” because that’s usually the truth.

[ResearchMed]

Awhile back, I read a post about RBDs that laid out the definition and some metrics and do’s/don’ts. Now I can’t find it, despite having used the search. If that sounds familiar, could someone please point me to that?

For some levity during today’s RBD, I read a headline today (9/3/2024) that was captioned:

“Stocks suffer worst day since August.”

And here I thought that today, stocks had the best day since August!



RM

[rockstar]

We’re doomed. Time to go triple leveraged cash.

[rob]

Calculate how much you lost during today’s RBD. Go car shopping for a “fun car” with that amount as your max budget. What kind of wheels can you get?!

And lol at the headline! Sensationalist much?

lol - I really like this one - runs excel to do all the math while playing a drum roll.....

Looks like I'm looking for a base level Camry Well ain't that a lot less interesting than I imagined

[jebmke]

Awhile back, I read a post about RBDs that laid out the definition and some metrics and do’s/don’ts. Now I can’t find it, despite having used the search. If that sounds familiar, could someone please point me to that?

For some levity during today’s RBD, I read a headline today (9/3/2024) that was captioned:

“Stocks suffer worst day since August.”

A classic from the financial press!

I wish some news source would use the headline ”Stocks Dropped (or Rose) For No Good Reason Whatsoever Yesterday” because that’s usually the truth.

The most common line I hear on Bloomberg radio during the day is “stocks are fluctuating”.

[Bcdkgf]

My auto purchase of BRK.B went thru. It's up. Go figure.

[rockstar]

Awhile back, I read a post about RBDs that laid out the definition and some metrics and do’s/don’ts. Now I can’t find it, despite having used the search. If that sounds familiar, could someone please point me to that?

For some levity during today’s RBD, I read a headline today (9/3/2024) that was captioned:

“Stocks suffer worst day since August.”

A classic from the financial press!

I wish some news source would use the headline ”Stocks Dropped (or Rose) For No Good Reason Whatsoever Yesterday” because that’s usually the truth.

The most common line I hear on Bloomberg radio during the day is “stocks are fluctuating”.

They need to get rid of that young girl that keeps asking the dumbest questions. She should be on CNBC.

[dvvader]

Calculate how much you lost during today’s RBD. Go car shopping for a “fun car” with that amount as your max budget. What kind of wheels can you get?!

And lol at the headline! Sensationalist much?

lol - I really like this one - runs excel to do all the math while playing a drum roll.....

Looks like I'm looking for a base level Camry Well ain't that a lot less interesting than I imagined

I seem to recall Livesoft joking about such a concept in the past, probably in the old free fall thread (RIP) during the COVID crash. It helped make light of an otherwise stressful situation and was the first thing that came to mind for this thread. I mean what else is there to do?!

And I’m in the lightly used base model Camry range myself lol, not much to sweat over.

[oldcomputerguy]

So the S&P 500 dropped 2.12% today. Yes, I guess that sounds bad. However, if you look at a somewhat longer time frame (say, since the low on Oct 27 2023), it's actually up by over 34%, even after today's drop.

It's probably not a good idea to make investing decisions based on the activity of one day.

[livesoft]

The S&P500 index was not in RBD territory at all today.

[aristotelian]

So the S&P 500 dropped 2.12% today. Yes, I guess that sounds bad. However, if you look at a somewhat longer time frame (say, since the low on Oct 27 2023), it's actually up by over 34%, even after today's drop.

It's probably not a good idea to make investing decisions based on the activity of one day.

So you're saying the market is still overvalued?

[oldcomputerguy]

So the S&P 500 dropped 2.12% today. Yes, I guess that sounds bad. However, if you look at a somewhat longer time frame (say, since the low on Oct 27 2023), it's actually up by over 34%, even after today's drop.

It's probably not a good idea to make investing decisions based on the activity of one day.

So you're saying the market is still overvalued?

Nah, I'm just saying that a 2% drop in one day is nothing to panic over.

[Carguy85]

An activity for the folks who think 2% is an RBD should be to call their insurance agent and inquire about whole life…get gains when the market is up and never lose any money when the market is down

[Tom_T]

So the S&P 500 dropped 2.12% today. Yes, I guess that sounds bad. However, if you look at a somewhat longer time frame (say, since the low on Oct 27 2023), it's actually up by over 34%, even after today's drop.

It's probably not a good idea to make investing decisions based on the activity of one day.

So you're saying the market is still overvalued?

Nah, I'm just saying that a 2% drop in one day is nothing to panic over.

Let's save our panic for when money market funds fall from 5% to 4.5%.

[rkhusky]

I wish some news source would use the headline ”Stocks Dropped (or Rose) For No Good Reason Whatsoever Yesterday” because that’s usually the truth.

Makes me laugh when someone posts that they understand stocks, but are baffled by bonds.

[retiringwhen]

The S&P500 index was not in RBD territory at all today.

Thus sayeth the oracle, but we do have data to back up his pronouncements

[masterofnothing257]

Well I was going to buy today anyway so thanks for the discount

[masterofnothing257]

Awhile back, I read a post about RBDs that laid out the definition and some metrics and do’s/don’ts. Now I can’t find it, despite having used the search. If that sounds familiar, could someone please point me to that?

For some levity during today’s RBD, I read a headline today (9/3/2024) that was captioned:

“Stocks suffer worst day since August.”

A classic from the financial press!

I wish some news source would use the headline ”Stocks Dropped (or Rose) For No Good Reason Whatsoever Yesterday” because that’s usually the truth.

Has the Bogleheads community considered crowdfunding a financial paper doing precisely this?

[pasadena]

“Stocks suffer worst day since August.”

I always roll my eyes at those end-of-the-world quotes. "Worst day since TWO MONTHS AGO! OMG! The Greatest Depression is here!"

Anyway, I wasn't planning on doing anything (I don't keep "dry powder" and I don't have any significant TLH opportunities), BUT I received a payment today that I was waiting for, and that will go into VTI first thing tomorrow, so I'm happy with the worst-day-ever-since-last-week.

Coincidentally, that payment is a few $100s greater than what I lost in the market, so I'm even in the green for the day!

[livesoft]

If stock market indices go up tomorrow, then I want to see "Stocks have best day of the month!"

Actually though, if the S&P500 drops less than 2% tomorrow, the same headline would work.

[drg02b]

“Stocks suffer worst day since August.”

Yep, these headlines tell me to believe all the AI hype. We've officially arrived.

[snowday2022]

I'm hoping my monthly 403b contribution is invested at today's prices.

For automated monthly contributions, is it based on the price at opening or closing on first open market day of month? I imagine it depends on mutual fund vs ETF?

[rkhusky]

Eyeing my stocks app, VTI was at about the same level on 7/8, 7/18, 7/31, and 8/15. Hopefully everyone was backing up the truck on those days too.

[livesoft]

Eyeing my stocks app, VTI was at about the same level on 7/8, 7/18, 7/31, and 8/15. Hopefully everyone was backing up the truck on those days too.

VTI had an RBD on August 5, 2024 when it closed at around $255.20 after trading lower during that day Today's close is up more than 6.7% from that price.

[rkhusky]

Eyeing my stocks app, VTI was at about the same level on 7/8, 7/18, 7/31, and 8/15. Hopefully everyone was backing up the truck on those days too.

VTI had an RBD on August 5, 2024 when it closed at around $255.20 after trading lower during that day Today's close is up more than 6.7% from that price.

Yes, if you loaded up on 7/31, when VTI was about the same price it is now, you wouldn’t have been happy a few days later. Wonder if folks who bought extra today will be happy or sad next week?

[max12377]

Not boglehead cannon but the RBD concept has been captured for entertainment purposes:
https://www.gebele.com/charts-and-graphs/rbd-alerts

Nice

[well9boy9]

Eyeing my stocks app, VTI was at about the same level on 7/8, 7/18, 7/31, and 8/15. Hopefully everyone was backing up the truck on those days too.

VTI had an RBD on August 5, 2024 when it closed at around $255.20 after trading lower during that day Today's close is up more than 6.7% from that price.

I TLH out of VTI on 8/5. Now waiting on 9/6 to TLH back in.

[AlohaBill]

How can it be a really bad day? CMC has recovered from his calf injury. Aiyuk has signed and Trent Williams just signed. Oh yes the 31 pick in the draft, Ricky Pearsall was shot in the chest. The bullet fortunately hit no vital organs and he was released the next day. So much for RBD. CHEERS.

[baconavocado]

I'm expecting more volatility for the next 2-3 months and I've put some cash on the sidelines and prepped my Roth conversion so I can take advantage of it. Today was nothing though.

[carminered2019]

Calculate how much you lost during today’s RBD. Go car shopping for a “fun car” with that amount as your max budget. What kind of wheels can you get?!

And lol at the headline! Sensationalist much?

I did and could have gotten a 98K car today.

[Beensabu]

I watered the entire yard (all four sides!) today except for the 20-foot stretch that's mostly shady all day. I will do it again tomorrow, and the next day, and the next day. We do not have a lawn, but do have plants and baby trees that will die in weeklong 100 degree days w/o daily watering.

It was a really hot day.

[retireIn2020]

Look at the bright side. International stocks outperformed.

That's a very interesting way to use the term "outperformed"

[AerialWombat]

Ever since the soaring/sinking threads got locked, I am no longer able to know when the market is making big moves. So if an RBD were to occur, I would never know!

[retireIn2020]

I'm expecting more volatility for the next 2-3 months and I've put some cash on the sidelines and prepped my Roth conversion so I can take advantage of it. Today was nothing though.

You don't need to have cash on the sidelines in order to do Roth conversions. As an example, my last Roth conversion was at the end of 2022 when I moved some total stock market funds from my tIRA to my Roth.

Key point is that I paid less in tax to make that conversion compared to its value today.

You don't gain anything from converting it to cash, then making the conversion, all you do is miss out on gain's if your prediction of volatility is wrong!

Cash on the sidelines is typically an emergency fund to cover expenses, or for those that think they can time the market.

[baconavocado]

I'm expecting more volatility for the next 2-3 months and I've put some cash on the sidelines and prepped my Roth conversion so I can take advantage of it. Today was nothing though.

You don't need to have cash on the sidelines in order to do Roth conversions. As an example, my last Roth conversion was at the end of 2022 when I moved some total stock market funds from my tIRA to my Roth.

Key point is that I paid less in tax to make that conversion compared to its value today.

You don't gain anything from converting it to cash, then making the conversion, all you do is miss out on gain's if your prediction of volatility is wrong!

Cash on the sidelines is typically an emergency fund to cover expenses, or for those that think they can time the market.

Cash on the sidelines is for large dips in the stock market, not for Roth conversions.