2020 Stocks Start Off With A Nice Gain.

Ouch, I just looked at our losses and the recent turmoil has dropped our portfolio down by close about 7.5% from the recent high point. I don't like it, but I just have to ride it out.

Well, after thinking about it a bit and cranking the amount that I recently transferred to CD's back into the equation gave me a loss of about 4.5% from the recent high point. I will go with that and count myself as having dodged a big bullet.

One of the guys in my Wed morning breakfast group is planning to sell. Several of us tried to talk him out of it, but panic is a hard thing to deal with. It is way too late to do any selling.
 

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I say all the time , that what triggers our downturns is stuff never on the radar .

Most people have portfolios based on prosperity ...they pretty much rule out recessions ,depressions and high inflation happening .

Good portfolio design never rules out these things but allows for them and plans for them ...this is why I am a big believer in the all weather portfolios that make money up or down .....

People try to capture every penny of gain and then end up giving a lot of it back when they get caught in these declines from no where ....now it takes so much more in gains to get back .

I switched last December to a all weather portfolio...it has done very well and since the decline gold and long term treasuries have been soaring ....the plan is when my regular 60/40 model is 8-10% less than what I am in I will buy back what I had and pocket a few hundred thousand difference.....
"Good portfolio design never rules out these things but allows for them and plans for them ...this is why I am a big believer in the all weather portfolios that make money up or down ....."

I do not think there is a portfolio that makes money if the market goes up or down.
 
Biggest loss ever today 02/27/20. The Dow was down around 850 this morning then down later around 330 then I come home to see it down 1,190.95. All three markets down more than 4% today. One case of the corona virus reported in Brazil and their market all but crashed. Strap yourselves in.
Not true at all .. this was not even close to the biggest loss .... points alone mean nothing ..it is all about percentages ,that is what makes for the biggest drop ...1987 saw a 26% drop in one day .....now that is the biggest loss
 

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"Good portfolio design never rules out these things but allows for them and plans for them ...this is why I am a big believer in the all weather portfolios that make money up or down ....."

I do not think there is a portfolio that makes money if the market goes up or down.
Sure there is , the Harry brown permanent portfolio has been in use for 40 years ....it was up in 2008 .... it is doing very nicely this year .

it is 25% Tlt or long treasury bonds
25% total market or s&p fund
25% very short term treasuries
25% Gld or gold

it has had 5 losing years out of more than 40 and all were less than 5%.

there is a mutual fund called the permanent portfolio..it is not the same thing and is terrible
 
The above is the total opposite of Warren Buffet. Most important only a fool buys a stock solely based on price.
He has been doing awful the last few years ...he lost 4 billion in two days in kraft Heinz , a fortune in ibm and billions in wells fargo.

in his hey day none of us were warren Buffett ..what Applies to warren does not apply to the average investor...the average investor can not even get the same returns the funds they were in got ...morningstar tracks small investor returns by tracking the money ...they give both investor returns and the ground returns ....investors as a group show awful investor behavior
 

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