U.S. stocks in freefall

Discuss all general (i.e. non-personal) investing questions and issues, investing news, and theory.
patrick
Posts: 1473
Joined: Fri Sep 04, 2009 3:39 am
Location: Mega-City One

Re: U.S. stocks in freefall

Post by patrick » Fri Aug 21, 2015 8:08 pm

protagonist wrote:If it makes you feel any better, the S+P is still up 11.4% since a year ago today.

It will take a large correction to make up for the gains of the past few years.


Indeed. It's still up 90% since this thread began! (including dividends, that is)

User avatar
Uncle Pennybags
Posts: 1836
Joined: Tue Oct 28, 2014 2:05 am

Re: U.S. stocks in freefall

Post by Uncle Pennybags » Fri Aug 21, 2015 8:44 pm

Hunky-dory wrote:Here comes the typical afternoon sell-off. Will we get the standard pre-close mini-rally?!?
No sorry, we buy the dips types are out of money this month.

flyingaway
Posts: 1534
Joined: Fri Jan 17, 2014 10:19 am

Re: U.S. stocks in freefall

Post by flyingaway » Fri Aug 21, 2015 9:01 pm

On a day like today, I feel uncomfortable not to buy something, mostly symbolically.

User avatar
nisiprius
Advisory Board
Posts: 34361
Joined: Thu Jul 26, 2007 9:33 am
Location: The terrestrial, globular, planetary hunk of matter, flattened at the poles, is my abode.--O. Henry

Re: U.S. stocks in freefall

Post by nisiprius » Fri Aug 21, 2015 9:05 pm

Monday's news today: "Stocks rebounded on NASA's denial of reports that an asteroid will strike the earth near Puerto Rico sometimes between September 18th and 28th."
flyingaway wrote:On a day like today, I feel uncomfortable not to buy something, mostly symbolically.
"Mr. Herbert Hoover says that now's the time to buy,
So let's have another cup o' coffee, and lets have another piece o' pie!"
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.

protagonist
Posts: 4953
Joined: Sun Dec 26, 2010 12:47 pm

Re: U.S. stocks in freefall

Post by protagonist » Fri Aug 21, 2015 9:46 pm

nisiprius wrote:Monday's news today: "Stocks rebounded on NASA's denial of reports that an asteroid will strike the earth near Puerto Rico sometimes between September 18th and 28th."
flyingaway wrote:On a day like today, I feel uncomfortable not to buy something, mostly symbolically.
"Mr. Herbert Hoover says that now's the time to buy,
So let's have another cup o' coffee, and lets have another piece o' pie!"


I just learned about the asteroid. Thanks. Maybe you are right and Efrain Rodriguez was responsible for the market decline.

Even Hoover was right sometimes.
And Bogle is wrong sometimes.
It doesn't matter who said something....the "something" must be evaluated on its own merit. The moral....Think for yourself. Don't trust some other guy to do it for you.

Browser
Posts: 4857
Joined: Wed Sep 05, 2012 4:54 pm

Re: U.S. stocks in freefall

Post by Browser » Fri Aug 21, 2015 10:02 pm

There must be some sort of rule pertaining to buying while the market is going down the tank. I ran across one just recently that might work: at the first trigger point (say down 10% for purpose of argument), deploy 25% of your wad and then begin DCAing in the rest over whatever period seems right to you, such as 12 months, 24, 36 -- or until the market is down 50%, whichever comes first. Have any other formulas to share?
We don't know where we are, or where we're going -- but we're making good time.

Leeraar
Posts: 4109
Joined: Tue Dec 10, 2013 8:41 pm
Location: Nowhere

Re: U.S. stocks in freefall

Post by Leeraar » Fri Aug 21, 2015 10:24 pm

Browser wrote:There must be some sort of rule pertaining to buying while the market is going down the tank. I ran across one just recently that might work: at the first trigger point (say down 10% for purpose of argument), deploy 25% of your wad and then begin DCAing in the rest over whatever period seems right to you, such as 12 months, 24, 36 -- or until the market is down 50%, whichever comes first. Have any other formulas to share?

There's "Value Averaging", which is DCA on steroids. Problem is, it requires you to make predictions and time the market. If there is a big drop, you'll run out of money to invest.

The method I use is called rebalancing, with a 50/50 Asset Allocation. Works pretty well for me. :P

L.
You can get what you want, or you can just get old. (Billy Joel, "Vienna")

Browser
Posts: 4857
Joined: Wed Sep 05, 2012 4:54 pm

Re: U.S. stocks in freefall

Post by Browser » Fri Aug 21, 2015 10:31 pm

I'm obviously talking about a situation where the investor has a wad of cash he'd like to put into stocks. If it were already in there, there's no need for a formula for getting into the market, comprende?
We don't know where we are, or where we're going -- but we're making good time.

flyingaway
Posts: 1534
Joined: Fri Jan 17, 2014 10:19 am

Re: U.S. stocks in freefall

Post by flyingaway » Fri Aug 21, 2015 10:35 pm

Browser wrote:There must be some sort of rule pertaining to buying while the market is going down the tank. I ran across one just recently that might work: at the first trigger point (say down 10% for purpose of argument), deploy 25% of your wad and then begin DCAing in the rest over whatever period seems right to you, such as 12 months, 24, 36 -- or until the market is down 50%, whichever comes first. Have any other formulas to share?


My "rule" is to buy funds when S&P is below 2050, and to buy vacations when S&P is above 2050.

surfstar
Posts: 1427
Joined: Fri Sep 13, 2013 12:17 pm
Location: Santa Barbara, CA

Re: U.S. stocks in freefall

Post by surfstar » Fri Aug 21, 2015 10:40 pm

I don't keep "dry powder" to buy on dips. Everything I intend to invest, is invested.
Guess I can only take advantage of "sales" that coincide with my Jan Roth investments or my bi-weekly contributions. Darn.

Browser
Posts: 4857
Joined: Wed Sep 05, 2012 4:54 pm

Re: U.S. stocks in freefall

Post by Browser » Fri Aug 21, 2015 10:52 pm

surfstar wrote:I don't keep "dry powder" to buy on dips. Everything I intend to invest, is invested.
Guess I can only take advantage of "sales" that coincide with my Jan Roth investments or my bi-weekly contributions. Darn.

That's probably the best way to do it, but I'm sure there a plenty of folks like me who have been on the chicken sideline for awhile. We may get the last laugh as we begin to wet our beaks. :D :D
We don't know where we are, or where we're going -- but we're making good time.

Thebigc
Posts: 101
Joined: Sun Jun 21, 2015 1:18 pm

Re: U.S. stocks in freefall

Post by Thebigc » Fri Aug 21, 2015 10:55 pm

Is it priced in yet? I'm not sure what was getting priced in, but it must have been a real daisy. People here are always telling me it's priced in. Interest rates? Priced in. China? Priced in. Inflation, deflation, corellation, growth, emerging markets? Priced in, priced in, priced in, priced... in. Bonds are priced in too. Don't forget that.

So I am just wondering what got priced in? Was it the possible .35 percent intrest rate increase getting priced in again? Did people suddenly go, "hey wait, China is a mess?" again? Concerns of deflation again? Only been hearing about that since QE started. First time we are going to raise rates in forever, could be as big as .50% or as small as .25% If they even do it... again, this time for sure, cause they really mean it this time. Emerging markets are not doing well, oil is being depressed by OPEC. Holy cow when did this all happen? Well been going on for years, but don't worry, priced in. Was it not priced in the day before? Nothing really changed, but heck lets just double down on the selling.

You can't price in panic and fear. We need a correction, we need a correction. Don't worry we always find a way to give ourselves one. We may even have a bear market, but at least we are done with limbo, stagnation sucks. Embrace the pain, it isn't over yet. Someone will call a bottom and people will be like hey that's sounds pretty good, lets start buying.

Just took a 63,497.51 hit, that's not a bad a car, that like a loaded S6, I want an R8 though.

Tell you one thing, my bonds, soooo much better at negative correlation than anything international. That seems like good diversification to me. US just dropped a fiver after everyone else closed. Monday should be fun. Should be intresting to see going forward if Captain Jack was right, so far US stock and bond allocation is doing it's job. Even International bonds are holding a negative correlation to equities. Now we got plenty of time to see what international equities do. Feel free to price in the last 10 years. 20 years, whatever. But from the suggestion of increase to 40% international equities, lets see how we do. Nothing may work but we will find out if this high correlation but currency based diversification helps. So far not really helping. Bonds are helping again, international equities not so much, in fact a big part of the problem.

flyingaway
Posts: 1534
Joined: Fri Jan 17, 2014 10:19 am

Re: U.S. stocks in freefall

Post by flyingaway » Fri Aug 21, 2015 11:05 pm

If it has not been priced in, it is being priced in.

BogleBoogie
Posts: 493
Joined: Tue May 13, 2014 11:15 am
Location: AK

Re: U.S. stocks in freefall

Post by BogleBoogie » Fri Aug 21, 2015 11:32 pm

Browser wrote:There must be some sort of rule pertaining to buying while the market is going down the tank. I ran across one just recently that might work: at the first trigger point (say down 10% for purpose of argument), deploy 25% of your wad and then begin DCAing in the rest over whatever period seems right to you, such as 12 months, 24, 36 -- or until the market is down 50%, whichever comes first. Have any other formulas to share?


That's called MARKET TIMING. There is no "formula" for that. You have to guess three times correctly to make it work. When to sell, when to buy, and when to stop selling/buying.

peppers
Posts: 1278
Joined: Tue Oct 25, 2011 7:05 pm

Re: U.S. stocks in freefall

Post by peppers » Sat Aug 22, 2015 6:15 am

nisiprius wrote:Sorry, what are you all seeing? I'm not sure I see it...
Image


This reminds me of the pattern left on the sidewalk after we lit up some small circular dark fireworks. If I remember correctly, I believed they were called "snakes".
"..the cavalry ain't comin' kid, you're on your own..."

User avatar
nedsaid
Posts: 8858
Joined: Fri Nov 23, 2012 12:33 pm

Re: U.S. stocks in freefall

Post by nedsaid » Sat Aug 22, 2015 11:45 am

We finally are getting the 10% correction we have not had for a while. We will see whether or not this turns into a true bear market of 20% down. My feeling is that we will see a correction and not a bear market. My predictive powers aren't very good though. What I will say is that market declines like this are normal market behavior. It shouldn't be a surprise as we have had a very strong US Stock Market since 2009.

It also looks like the "Nedsaid U.S. stocks in freefall Boglehead thread contrary indicator" is in pretty serious trouble. Until know, it worked like a charm. The thread would pop up and the markets would rally. It was fun while it lasted.
A fool and his money are good for business.

Pinotage
Posts: 187
Joined: Sat Nov 12, 2011 6:02 am

Re: U.S. stocks in freefall

Post by Pinotage » Sat Aug 22, 2015 12:43 pm

Agree with the numerous other posters that this is just a bump. A blip. A relative nothing.

I say that based on:

1- Our specific frame of reference for market turbulence (invested through far bigger dips before)
2 - Our investing horizon (many decades to go)
3 - Our asset allocation (relatively conservative for age)
4 - The rest of our financial picture

I think it is important to remember all of these factors, and probably more, work in concert to stoke or soothe one's emotions.

Particularly number 4.

A dip, however small or large, looks worse when you are unemployed. It looks worse if you are carrying a too-large mortgage. It looks worse if you have health issues. It looks worse if you have other demands on your time and resources, demands that aren't deferrable or scalable based on market performance.

It even looks worse if you stub your toe, have low blood sugar, or discover a leaky pipe in your basement. Or read a bunch of negative posts. Emotional triggers feed on one another and can skew an otherwise rational perspective pretty fast.

So if the recent dip really looks bad to you, take a moment to consider why. Is it because your AA is too aggressive? Or is it because other areas of your financial life need more attention than your investments? Or have your emotions temporarily gotten the best of you?

Full disclosure: I'm writing this post with hopes to balance some of the negative over-reaction, but also as a reminder to myself how I felt at this specific moment in time. I hope to refer back to this post in days, weeks, or years when I'm feeling emotional about the market.

Best wishes to all!

Leeraar
Posts: 4109
Joined: Tue Dec 10, 2013 8:41 pm
Location: Nowhere

Re: U.S. stocks in freefall

Post by Leeraar » Sat Aug 22, 2015 2:19 pm

Well,

I figured out my rebalancing today, and scheduled the trades for Monday. I considered waiting until Monday afternoon but, to be quite honest, I do not know how to react if I then see the market is up or down.

The total moved is less than 1% of retirement assets. Most of the money moved comes out of VBILX, Intermediate Bonds. I suppose it has done relatively well since I last rebalanced in May.

L.
You can get what you want, or you can just get old. (Billy Joel, "Vienna")

User avatar
goodenyou
Posts: 1100
Joined: Sun Jan 31, 2010 11:57 pm
Location: Skating to Where the Puck is Going to Be..or on the golf course

Re: U.S. stocks in freefall

Post by goodenyou » Sat Aug 22, 2015 6:01 pm

Bad things happen fast...and good things happen slowly.
"Ignorance more frequently begets confidence than does knowledge" | "The best years you have left are the ones you have right now"

User avatar
Munir
Posts: 2351
Joined: Mon Feb 26, 2007 4:39 pm
Location: Oregon

Re: U.S. stocks in freefall

Post by Munir » Sat Aug 22, 2015 9:12 pm

Boo-hoo. A few weeks ago I transferred a bunch of money from my bond-heavy balanced fund in my IRA into Total Stock Market in order to use that money for my RMDs in the next 2-3 years. The assumption was that stock funds will do better than bond-heavy balanced funds in this period and I didn't want to sell my balanced fund to satisfy my RMD. Now it looks like I will be reversing this failed "strategy" :D .
Last edited by Munir on Sun Aug 23, 2015 12:07 am, edited 1 time in total.

sawhorse
Posts: 2871
Joined: Sun Mar 01, 2015 7:05 pm

Re: U.S. stocks in freefall

Post by sawhorse » Sat Aug 22, 2015 9:18 pm

Pinotage wrote:Agree with the numerous other posters that this is just a bump. A blip. A relative nothing.

I say that based on:

1- Our specific frame of reference for market turbulence (invested through far bigger dips before)
2 - Our investing horizon (many decades to go)
3 - Our asset allocation (relatively conservative for age)
4 - The rest of our financial picture

I think it is important to remember all of these factors, and probably more, work in concert to stoke or soothe one's emotions.

Particularly number 4.

A dip, however small or large, looks worse when you are unemployed. It looks worse if you are carrying a too-large mortgage. It looks worse if you have health issues. It looks worse if you have other demands on your time and resources, demands that aren't deferrable or scalable based on market performance.

It even looks worse if you stub your toe, have low blood sugar, or discover a leaky pipe in your basement. Or read a bunch of negative posts. Emotional triggers feed on one another and can skew an otherwise rational perspective pretty fast.

So if the recent dip really looks bad to you, take a moment to consider why. Is it because your AA is too aggressive? Or is it because other areas of your financial life need more attention than your investments? Or have your emotions temporarily gotten the best of you?

Full disclosure: I'm writing this post with hopes to balance some of the negative over-reaction, but also as a reminder to myself how I felt at this specific moment in time. I hope to refer back to this post in days, weeks, or years when I'm feeling emotional about the market.

Best wishes to all!

This is one of the best posts I've read on any thread.

User avatar
Munir
Posts: 2351
Joined: Mon Feb 26, 2007 4:39 pm
Location: Oregon

Re: U.S. stocks in freefall

Post by Munir » Sun Aug 23, 2015 10:10 am

Pinotage wrote:Agree with the numerous other posters that this is just a bump. A blip. A relative nothing.

I say that based on:

1- Our specific frame of reference for market turbulence (invested through far bigger dips before)
2 - Our investing horizon (many decades to go)
3 - Our asset allocation (relatively conservative for age)
4 - The rest of our financial picture

I think it is important to remember all of these factors, and probably more, work in concert to stoke or soothe one's emotions.

Particularly number 4.

A dip, however small or large, looks worse when you are unemployed. It looks worse if you are carrying a too-large mortgage. It looks worse if you have health issues. It looks worse if you have other demands on your time and resources, demands that aren't deferrable or scalable based on market performance.

It even looks worse if you stub your toe, have low blood sugar, or discover a leaky pipe in your basement. Or read a bunch of negative posts. Emotional triggers feed on one another and can skew an otherwise rational perspective pretty fast.

So if the recent dip really looks bad to you, take a moment to consider why. Is it because your AA is too aggressive? Or is it because other areas of your financial life need more attention than your investments? Or have your emotions temporarily gotten the best of you?

Full disclosure: I'm writing this post with hopes to balance some of the negative over-reaction, but also as a reminder to myself how I felt at this specific moment in time. I hope to refer back to this post in days, weeks, or years when I'm feeling emotional about the market.

Best wishes to all!


Agree. However, some of us do not have the luxury or safety of #2. A higher fixed income allocation should address that even though that allocation could also drop (possibly temporarily) whenever the Fed decides to raise rates.

User avatar
Uncle Pennybags
Posts: 1836
Joined: Tue Oct 28, 2014 2:05 am

Re: U.S. stocks in freefall

Post by Uncle Pennybags » Mon Aug 24, 2015 12:36 am

Munir wrote:A few weeks ago I transferred a bunch of money from my bond-heavy balanced fund in my IRA into Total Stock Market ... Now it looks like I will be reversing this failed "strategy" :D .
Ha ha funny joke. :wink:

SrGrumpy
Posts: 424
Joined: Wed Aug 05, 2015 3:21 pm

Re: U.S. stocks in freefall

Post by SrGrumpy » Mon Aug 24, 2015 1:22 am

Pinotage wrote:Agree with the numerous other posters that this is just a bump. A blip. A relative nothing.


Couldn't disagree more. At any rate, it would be healthy if the frothy market did crash. China is a real worry. You can ask, justifiably, how events there should affect the share price of Chipotle, to quote Jim Cramer. I don't know why, but it does. But Bogleheads are famous for proudly ignoring world events and staying the course towards the iceberg. Whatever works, I guess.

Thebigc
Posts: 101
Joined: Sun Jun 21, 2015 1:18 pm

Re: U.S. stocks in freefall

Post by Thebigc » Mon Aug 24, 2015 2:01 am

Shouldn't this thread title be China builds full size replica of 1929.

Leeraar
Posts: 4109
Joined: Tue Dec 10, 2013 8:41 pm
Location: Nowhere

Re: U.S. stocks in freefall

Post by Leeraar » Mon Aug 24, 2015 2:04 am

SrGrumpy wrote:
Pinotage wrote:Agree with the numerous other posters that this is just a bump. A blip. A relative nothing.


Couldn't disagree more. At any rate, it would be healthy if the frothy market did crash. China is a real worry. You can ask, justifiably, how events there should affect the share price of Chipotle, to quote Jim Cramer. I don't know why, but it does. But Bogleheads are famous for proudly ignoring world events and staying the course towards the iceberg. Whatever works, I guess.

Wow! Which iceberg do I not recall?

I don't know if the blip is over, or if the "frothy market" will crash. But, I will rebalance Monday, based on Friday's prices. If the market changes after that, I will rebalance again.

"Chipotle, Jim Cramer, China" in the same paragraph. How does one make sense of that? :P

L.
You can get what you want, or you can just get old. (Billy Joel, "Vienna")

User avatar
JoMoney
Posts: 4480
Joined: Tue Jul 23, 2013 5:31 am

Re: U.S. stocks in freefall

Post by JoMoney » Mon Aug 24, 2015 2:42 am

SrGrumpy wrote:...Bogleheads are famous for proudly ignoring world events and staying the course towards the iceberg. Whatever works, I guess.
:sharebeer On these seas you can't really see the icebergs coming, but if you've built your ship knowing they're inevitably out there, you'll do just fine. Stay the course.
Image
"To achieve satisfactory investment results is easier than most people realize; to achieve superior results is harder than it looks." - Benjamin Graham

TorturedRegret
Posts: 144
Joined: Fri Aug 21, 2015 5:20 pm

Re: U.S. stocks in freefall

Post by TorturedRegret » Mon Aug 24, 2015 6:58 am

peppers wrote:
nisiprius wrote:Sorry, what are you all seeing? I'm not sure I see it...
Image


This reminds me of the pattern left on the sidewalk after we lit up some small circular dark fireworks. If I remember correctly, I believed they were called "snakes".


https://www.youtube.com/watch?v=F3aAksyabes

Browser
Posts: 4857
Joined: Wed Sep 05, 2012 4:54 pm

Re: U.S. stocks in freefall

Post by Browser » Mon Aug 24, 2015 7:25 am

Ladies and Gentlemen: It's official. US stocks in freefall. DOW futures down by more than 600 points this morning, Monday Aug 24, 2015. The good news is that you'll have an opportunity to check your risk tolerance today. The risk has shown up! :happy
Last edited by Browser on Mon Aug 24, 2015 7:53 am, edited 1 time in total.
We don't know where we are, or where we're going -- but we're making good time.

2Birds1Stone
Posts: 383
Joined: Wed Nov 19, 2014 10:33 pm
Location: New York

Re: U.S. stocks in freefall

Post by 2Birds1Stone » Mon Aug 24, 2015 7:38 am

As a newer investor who dumped his entire net worth into a 80/20 portfolio over the past few months this definitely doesn't feel very good -_-

Tanelorn
Posts: 1322
Joined: Thu May 01, 2014 9:35 pm

Re: U.S. stocks in freefall

Post by Tanelorn » Mon Aug 24, 2015 7:57 am

Premarket is down 3-5% for broad US market indexes.

User avatar
TomatoTomahto
Posts: 6978
Joined: Mon Apr 11, 2011 1:48 pm

Re: U.S. stocks in freefall

Post by TomatoTomahto » Mon Aug 24, 2015 7:57 am

2Birds1Stone wrote:As a newer investor who dumped his entire net worth into a 80/20 portfolio over the past few months this definitely doesn't feel very good -_-
If it always felt good, everyone would be doing it. The reason you generally make money at this is that there's always the small nagging fear that it will be global and long-lasting. You can't do much about it except lock in the losses, so relax.

Browser
Posts: 4857
Joined: Wed Sep 05, 2012 4:54 pm

Re: U.S. stocks in freefall

Post by Browser » Mon Aug 24, 2015 8:03 am

TomatoTomahto wrote:
2Birds1Stone wrote:As a newer investor who dumped his entire net worth into a 80/20 portfolio over the past few months this definitely doesn't feel very good -_-
If it always felt good, everyone would be doing it. The reason you generally make money at this is that there's always the small nagging fear that it will be global and long-lasting. You can't do much about it except lock in the losses, so relax.

On the other hand, this could get a lot worse. My theory: if you're likely to bail if stocks go down by 25% or more (be honest) then I'd go ahead and bail right now rather than later. Your equity bet was too large and now you know it. Reset.
We don't know where we are, or where we're going -- but we're making good time.

User avatar
tainted-meat
Posts: 676
Joined: Tue Dec 20, 2011 9:35 pm
Location: Kentucky

Re: U.S. stocks in freefall

Post by tainted-meat » Mon Aug 24, 2015 8:03 am

Stick to the plan and keep investing. It will pay off in the long-run. Long-term risks are lower when stock prices are lower even though it doesn't feel that way. :mrgreen:

TorturedRegret
Posts: 144
Joined: Fri Aug 21, 2015 5:20 pm

Re: U.S. stocks in freefall

Post by TorturedRegret » Mon Aug 24, 2015 8:04 am

2Birds1Stone wrote:As a newer investor who dumped his entire net worth into a 80/20 portfolio over the past few months this definitely doesn't feel very good -_-


Welcome to the real world ...

toto238
Posts: 1877
Joined: Wed Feb 05, 2014 2:39 am

Re: U.S. stocks in freefall

Post by toto238 » Mon Aug 24, 2015 8:08 am

I have 30 years to go until retirement.

I'm not "losing money" today.

I'm simply earning my equity premium.

60-year-old-Me will thank present-day-Me.

azanon
Posts: 1542
Joined: Mon Nov 07, 2011 10:34 am
Location: Little Rock, AR
Contact:

Re: U.S. stocks in freefall

Post by azanon » Mon Aug 24, 2015 8:10 am

I think ideally, you should emotionally feel pretty good, whatever is happening at any given moment in the market. If you're freaking out when the inevitable drop comes, you were positioned too aggressively to begin with. The only way to stay the course is to know beforehand that you have a portfolio you can live with, when you eventually see all of the typical investment scenarios. Any other portfolio is just wrong, IMO.

Browser
Posts: 4857
Joined: Wed Sep 05, 2012 4:54 pm

Re: U.S. stocks in freefall

Post by Browser » Mon Aug 24, 2015 8:31 am

Down over 1000 right at the open. Whew!
We don't know where we are, or where we're going -- but we're making good time.

User avatar
BigFoot48
Posts: 2502
Joined: Tue Feb 20, 2007 10:47 am
Location: Arizona

Re: U.S. stocks in freefall

Post by BigFoot48 » Mon Aug 24, 2015 8:31 am

Thebigc wrote:Shouldn't this thread title be China builds full size replica of 1929.

Good one!
Retired | Two-time in top-10 in Bogleheads S&P500 contest; 12-time loser

Browser
Posts: 4857
Joined: Wed Sep 05, 2012 4:54 pm

Re: U.S. stocks in freefall

Post by Browser » Mon Aug 24, 2015 8:33 am

Down 1300. Full-on crash mode.
We don't know where we are, or where we're going -- but we're making good time.

Carpentermaass84
Posts: 22
Joined: Fri Aug 21, 2015 5:16 pm

Re: U.S. stocks in freefall

Post by Carpentermaass84 » Mon Aug 24, 2015 8:35 am

Circuit breaker pulled - catastrophic losses across the board. I am vigorously patting myself on the back for pulling everything out at 18,250.

kingomri
Posts: 31
Joined: Tue Feb 25, 2014 11:19 am

Re: U.S. stocks in freefall

Post by kingomri » Mon Aug 24, 2015 8:37 am

Browser wrote:Ladies and Gentlemen: It's official. US stocks in freefall. DOW futures down by more than 600 points this morning, Monday Aug 24, 2015. The good news is that you'll have an opportunity to check your risk tolerance today. The risk has shown up! :happy

This is my first significant downturn since I first started investing. They say you don't really know your risk tolerance until you experience a bear market. So far, I'm feeling pretty good - I'm still rooting for more drops and staying low for a while so I can buy cheaper when I up my 401(k) contributions in Q4!\

On the more unfortunate side, I dumped my entire yearly traditional IRA contribution into the market last Monday, but I'm not too upset.

Thebigc
Posts: 101
Joined: Sun Jun 21, 2015 1:18 pm

Re: U.S. stocks in freefall

Post by Thebigc » Mon Aug 24, 2015 8:41 am

Browser wrote:Down 1300. Full-on crash mode.


That's huge point wise but percentage wise it's not the worst the Dow has been through not even close. But this is pretty bad for a single day.

Browser
Posts: 4857
Joined: Wed Sep 05, 2012 4:54 pm

Re: U.S. stocks in freefall

Post by Browser » Mon Aug 24, 2015 8:41 am

I was following Marketwatch. Their ticker is crazy. Showed DOW down by over 1500 then 2 seconds later down by 789. What's going on?
We don't know where we are, or where we're going -- but we're making good time.

BanditKing
Posts: 534
Joined: Tue Oct 29, 2013 11:11 pm

Re: U.S. stocks in freefall

Post by BanditKing » Mon Aug 24, 2015 8:44 am

Never fails - I maxed my 401k about 4 weeks ago!

I think the best predictor of the market's performance is that it goes up just before my contribution goes in, and down right afterwards. And now that I'm done for the year, why not crash. *sigh*

crg11
Posts: 392
Joined: Sat Jan 04, 2014 8:16 am

Re: U.S. stocks in freefall

Post by crg11 » Mon Aug 24, 2015 8:46 am

And now -496 for the Dow.

:sharebeer First rapid drop I've been part of since becoming a Boglehead. It feels good not having to worry and stay the course. Would be nice if it stays down until next week's paycheck when a bonus hits too :sharebeer

easye418
Posts: 327
Joined: Wed Apr 22, 2015 8:04 am

Re: U.S. stocks in freefall

Post by easye418 » Mon Aug 24, 2015 8:47 am

BanditKing wrote:Never fails - I maxed my 401k about 4 weeks ago!

I think the best predictor of the market's performance is that it goes up just before my contribution goes in, and down right afterwards. And now that I'm done for the year, why not crash. *sigh*


As a newbie to Boglehead, is this one of those days that everyone mentions "you need to stick to the plan and never sell!"?

Being 26 and 100 stocks, I just need to forget to look at Vanguard for a while.

BanditKing
Posts: 534
Joined: Tue Oct 29, 2013 11:11 pm

Re: U.S. stocks in freefall

Post by BanditKing » Mon Aug 24, 2015 8:48 am

easye418 wrote:As a newbie to Boglehead, is this one of those days that everyone mentions "you need to stick to the plan and never sell!"?


Absolutely. There's a few things you can do around the edges, but yea, just stick with your IPS. If you want to fiddle (ie, buy some things now that they are on sale), that rule should be written into your IPS in fact.
Last edited by BanditKing on Mon Aug 24, 2015 8:50 am, edited 1 time in total.

easye418
Posts: 327
Joined: Wed Apr 22, 2015 8:04 am

Re: U.S. stocks in freefall

Post by easye418 » Mon Aug 24, 2015 8:49 am

BanditKing wrote:
easye418 wrote:As a newbie to Boglehead, is this one of those days that everyone mentions "you need to stick to the plan and never sell!"?


Absolutely. There's a few things you can do around the edges, but yea, just stick with your IPS. If you want to fiddle (ie, buy some things now that the are on sale), that rule should be written into your IPS in fact.


IPS? = Investment Planning Strategy?

I did sell my bonds and exchanged last Friday. Shoulda just stayed to the course.
Last edited by easye418 on Mon Aug 24, 2015 8:54 am, edited 1 time in total.

TorturedRegret
Posts: 144
Joined: Fri Aug 21, 2015 5:20 pm

Re: U.S. stocks in freefall

Post by TorturedRegret » Mon Aug 24, 2015 8:50 am

Carpentermaass84 wrote:Circuit breaker pulled - catastrophic losses across the board. I am vigorously patting myself on the back for pulling everything out at 18,250.


You are wrong.
Market timing is impossible, so that was a mistake.
Haven't you learned anything about indexing and Buy and Hold?

Post Reply