Dow falls 1,191 points -- the most in history

By itself , Points mean little ...percentages tell the story ...this was nothing compared to the 26% drop in one day in 1987 ...... let that sink in .

I started investing in 1987 too .... if I didn’t tell this story I wouldn’t even remember it happened .

I started using the fidelity insight growth model back then ...a hypothetical 100k without a penny added is 3.4 million
 
Gardenlover said:
As I mentioned in another strip around here somewhere - It's just paper until you have the gold in hand. I know some disagree, but stocks will rise again, don't freak out and sell it low.
Click to expand...
Nothing could be more false . You may not care at the moment what it it is worth but whether you sell or not that is all it is worth ...we only hope it goes back up for when we care.

I certainly care ...my draw in retirement is based on each years value ...anyone retiring has their safe withdrawal rate based on that snap shot .

My success rate in retirement is based on that value

estate taxes are based on that value

asset based loans are based on that value

IT COUNTS
 
mathjak107 said:
Nothing could be more false . You may not care at the moment what it it is worth but whether you sell or not that is all it is worth ...we only hope it goes back up for when we care
Click to expand...
Sorry but I disagree - freaking out and selling low is rather dumb IMHO. I always get a chuckle out of people who attempt to discredit other's experiences by stating it's a false dichotomy. It's been working for me for over 35 years. I'm glad you found something else that works for you. Dividends don't lie.
 
Gardenlover said:
Sorry but I disagree - freaking out and selling low is rather dumb IMHO. I always get a chuckle out of people who attempt to discredit other's experiences by stating it's a false dichotomy. It's been working for me for over 35 years. I'm glad you found something else that works for you.
Click to expand...
Your personal experience does not negate all the research and studies on individual investor behavior ....try reading even the vanguard investor study and they are the grand pappy of do it yourself investing . Investor behavior is a big factor

https://www.morningstar.com/articles/582626/mind-the-gap-why-investors-lag-funds

https://advisors.vanguard.com/iwe/pdf/FASQAAAB.pdf
 
Gardenlover said:
I give most people amble opportunity, but son you just made my ignore list. It's pitiful to think there is only one way to invest. You can't disprove proven results. Thanks for playing.
Click to expand...
I never said there is one way ...I said as a group the majority of small investors hurt their own performance. Fact.

that does not mean EVERYONE but it does mean most ...most investors stay put and do well when the trend is going higher and higher .buying high and selling higher makes a lot of money ...small investors tend to try to buy low in sell offs and end up bailing when the trend is down lower and lower
 
Last edited:
I made a great deal in the market. Those who panic sell, as a mass selloff occurs, should not be in the market, in the first place. If you have enough cash to comfortably do so, be like a kid in the candy store, and buy up all of the bargains, at the bottom, brought about by foolish people panic selling. Never went wrong doing so.

Of course, if you have some market smarts, you can make some more off the herd panic mentality by shorting a number of stocks.

Good luck!
 
treeguy64 said:
I made a great deal in the market. Those who panic sell, as a mass selloff occurs, should not be in the market, in the first place. If you have enough cash to comfortably do so, be like a kid in the candy store, and buy up all of the bargains, at the bottom, brought about by foolish people panic selling. Never went wrong doing so.

Of course, if you have some market smarts, you can make some more off the herd panic mentality by shorting a number of stocks.

Good luck!
Click to expand...
Many of us did well , but unfortunately the masses do not ....I have been an investor since 1987 in equities and loads of commercial real estate ..but I am not representative of what the masses do and likely you are not either ...
 
treeguy64 said:
I made a great deal in the market. Those who panic sell, as a mass selloff occurs, should not be in the market, in the first place. If you have enough cash to comfortably do so, be like a kid in the candy store, and buy up all of the bargains, at the bottom, brought about by foolish people panic selling. Never went wrong doing so.

Of course, if you have some market smarts, you can make some more off the herd panic mentality by shorting a number of stocks.

Good luck!
Click to expand...
Exactly!
 
mathjak107 said:
Nothing could be more false . You may not care at the moment what it it is worth but whether you sell or not that is all it is worth ...we only hope it goes back up for when we care.

I certainly care ...my draw in retirement is based on each years value ...anyone retiring has their safe withdrawal rate based on that snap shot .

My success rate in retirement is based on that value

estate taxes are based on that value

asset based loans are based on that value

IT COUNTS
Click to expand...
The market has ALWAYS made the come back. Always.
 
mathjak107 said:
By itself , Points mean little ...percentages tell the story ...this was nothing compared to the 26% drop in one day in 1987 ...... let that sink in .

I started investing in 1987 too .... if I didn’t tell this story I wouldn’t even remember it happened .

I started using the fidelity insight growth model back then ...a hypothetical 100k without a penny added is 3.4 million
Click to expand...
The largest point drop in history does have meaning especially when it may indicate more trouble worldwide could be on the way. Granted other worldwide virus threats have damaged the stock markets but nothing rattles investors more than the unknown.
 
mathjak107 said:
I never said there is one way ...I said as a group the majority of small investors hurt their own performance. Fact.

that does not mean EVERYONE but it does mean most ...most investors stay put and do well when the trend is going higher and higher .buying high and selling higher makes a lot of money ...small investors tend to try to buy low in sell offs and end up bailing when the trend is down lower and lower
Click to expand...
So you will wait until the market is in full recovery and going higher before you execute your strategy of "buying high". Question: At what point in your theory of buying high do you actually move back in after you have witness a total recovery while sat on your money? What is your trigger point in this theory of yours? What elements of the individual stocks do you review to decide to go back in? You are saying you can time the market while you know no one can. You and I bought 100 shares XYZ @ 100. It fell to 50. I bought 100 more shares at 50 while you waited for a phantom number that is greater than the original price of 100. Now explain why your theory is better than every living person in the world.
 
mathjak107 said:
Many of us did well , but unfortunately the masses do not ....I have been an investor since 1987 in equities and loads of commercial real estate ..but I am not representative of what the masses do and likely you are not either ...
Click to expand...
Define "masses" and what stats do you have to back that statement up say over the past 70 years? You will learn in that time frame the average investors or "masses" as you refer to them have faired quite well.
 
fmdog44 said:
Define "masses" and what stats do you have to back that statement up say over the past 70 years? You will learn in that time frame the average investors or "masses" as you refer to them have faired quite well.
Click to expand...
read the studies
fmdog44 said:
So you will wait until the market is in full recovery and going higher before you execute your strategy of "buying high". Question: At what point in your theory of buying high do you actually move back in after you have witness a total recovery while sat on your money? What is your trigger point in this theory of yours? What elements of the individual stocks do you review to decide to go back in? You are saying you can time the market while you know no one can. You and I bought 100 shares XYZ @ 100. It fell to 50. I bought 100 more shares at 50 while you waited for a phantom number that is greater than the original price of 100. Now explain why your theory is better than every living person in the world.
Click to expand...

i don't time things ... i buy when it is part of the plan or i have the money ....i dont try to catch a low . most successful investors are long term investors and they get a portfolio to match their goals and needs until it no longer does .

but many investors don't do this , they try to time their buys or their exits and market timing does not work well .

read the links i posted , it tells you what i mean by masses ..... the masses means the investor money as a group moves in and out of funds at the wrong time and investor returns as a group are wrong enough to constantly get a big difference in return between what they get and the fund gets .

this is the best it gets , as this is a 10 year bull market .. the more downs we have the worse the small investor numbers get .
i-KVJpNRz-L.jpg


i-rpqC92h-S.jpg
 
Last edited:
I remember Black Monday on that day, October 19, 1987, I learned the value of having cash on hand.

I had pulled out the money to buy a house a week before the dip.

At the time that one week made all the difference in the world to me.

On another note when I read the bickering on this thread and others I think of this quote from Winston Churchill.

“You will never reach your destination if you stop and throw stones at every dog that barks.”
 
Aunt Bea said:
I remember Black Monday on that day, October 19, 1987, I learned the value of having cash on hand.

I had pulled out the money to buy a house a week before the dip.

At the time that one week made all the difference in the world to me.

On another note when I read the bickering on this thread and others I think of this quote from Winston Churchill.

“You will never reach your destination if you stop and throw stones at every dog that barks.”
Click to expand...
basic investing rules are that only long term money should be in stocks , not money you need in the short term ....mismatching money to time frames , next to trying to time markets is likely the 2nd biggest cause of investor losses
 

You must log in or register to reply here.

Back
Top