Stock market...buckle up!

Thanks, Diva...still confused about what he's got going. Says he is also representing a crypto "bank" and that the investors are getting 30% interest. LOL!
 

I agree with comments that the circumstances leading to the downturn in 2008 are different than the ones impacting
the economy / financials today. The turn-around after 2008 was relatively swift. It seems to me today's issues may be
more complicated (inflation, climate change, supply chains, Ukraine, politics, etc.) and may take longer to resolve. I hope
I am wrong.
 
The markets took another major Nose Dive today, and there are few signs of this trend easing up anytime soon. There are so many negative things happening at the same time....both here, and globally...that it will be a minor miracle if the markets begin to turn positive in coming weeks...maybe months.
 

Remembering the recessions of 1980, 1990, 2000, 2008-9, and now maybe another? Yawn.

But... we are very fortunate. Like Diva, we don't need to take distributions from our portfolio (although we do, at a 3% ratio, for fun money). Our CFP has our accounts in a Balanced Risk position, which they define as between a 50/50 split and a 60/40 split, depending on what the market is doing.

From their most recent quarterly newsletter:
" Currently they're taking the opportunity to harvest tax losses and have allocated a slightly larger shift into two REITs due to inflation considerations. It's still less than 3% overall, as REITs are more volatile than bonds.

Over the last 5 yrs they have changed the bond funds used, de-emphasizing income production.
With bonds yielding little and under pressure from expected rate increases, some bond holdings have been reduced to accommodate the new REIT investments.

To lessen that impact, bond portfolios were adjusted to reduce correlation to stocks. This may mean lower income but better capital preservation and diversification benefits. "
 
I just keep saying to myself that investing in the stock market is a long-term proposition. 2022 is pretty bleak for my portfolio, but I hope to live for another 20 years so hopefully there will also be cycles where my assets appreciate. 2021 was a great year. Unless we have a 10-year economic stagnation like Japan did between 1991-2001 I am hopeful. I don't think that is going to happen.
 
According to all the financial geniuses on CNBC, we are headed for a recession. If that is the case, I would expect the markets to drop to whatever the major investment firms feel is a safe level. It appears that the bond markets are doing better, which makes sense.

We use Edward Jones to manage our trusts and investments. They are probably about the same as any other company, but I like not having to look over their shoulder every day or week. They send me a weekly printout of how the accounts are performing.

I began noticing that they were moving us into cash late last year. Our stock portfolio is about 50% cash as of today. I also noticed that "I bonds" are paying 9.62%, so I may dump some cash into those instruments to help bail out the government.
 
With Ukraine, with huge changes in the oil market...I would just urge everyone to be extremely careful with their finances.

These are hardly ordinary times...or anything close to it.

Take care everyone and be safe...
 
I will be surprised if the markets show any signs of recovery in the next 6 months. I think the S&P and NASDAQ will be down by at least 30% by the end of Summer. The elements of recession just keep looming larger. It will be interesting to see if the FED and its rate hikes have any real effect on inflation...I kind of doubt it. For now, IMO, Cash is King.
 
dseag2 said:
I just keep saying to myself that investing in the stock market is a long-term proposition.
Click to expand...
Long term investing is for the young. Over time, unless we have another depression, a person's portfolio should go up. When you become a senior, it's really not about growth, but more about income that can be used to supplement your pension and social security, if those two are not enough to live off of. People that need income and have investments in the market look towards buying stocks that pay high dividends. When the dividends are paid out, they will withdraw that amount or have their account setup so that the money comes directly to them, instead of being reinvested.

Buying growth stocks are for younger people that have time to tolerate the ups and downs of the markets. JMO
 
My financial advisor understands my long and short-term goals and invests accordingly. I have a varied portfolio, and he has set aside enough cash to last me for a couple of years when I finally have to start withdrawing (which will like be in the next couple of months). Also, lots more dividend-paying stocks and a more risk-averse portfolio.
 
IMO investing needs to be a long-term proposition.

I've been retired for 17 years and could have 20-30 years ahead of me.

Try to tune out the noise and never bet against the future of America.

“What we learn from history is that people don’t learn from history,” - Warren Buffett

"If you have trouble imagining a 20% loss in the stock market, you shouldn’t be in stocks." - Jack Bogle

“Someone’s sitting in the shade today because someone planted a tree a long time ago.” - Warren Buffet
 
Yes, think the real problem is older folks want to know how long the drawdowns will be taking place...after all, they don't have as many years left...lol.
 

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