Stock Market 2022 except we just talk about stocks

[ambiturner]

…so the last thread got a bit off topic but the dip is deepening with potential for more this week with Tesla earnings coming out. Where is the bottom?

To me the past 2 years look eerily similar to the lead up to 70s stagflation. Will this be 1973?

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[coffeebythelake]

…so the last thread got a bit off topic but the dip is deepening with potential for more this week with Tesla earnings coming out. Where is the bottom?

To me the past 2 years look eerily similar to the lead up to 70s stagflation. Will this be 1973?

Hopefully not. I'm basically holding, with a combo of VOO and VTI. My roth account is mostly QQQ which sucks but I don't think I will sell. Just HODL. Its ****ing depressing watching this blood bath. But what can j do?? Many of the high flying stocks are already 80% down from their peaks.. I do have about 150k in cash holdings to deploy when things are less volatile.

 

[IMGASMD]

Down 10%
HODL!
To the moon!

 

[RadOncDoc21]

Down 10%
HODL!
To the moon!

I was down 10% 3 months ago… now I’m down 40% and falling around 1-2% a day. Started investing 6 months ago so yay!!

 

[GoBeers]

are you all just DCA'ing monthly at this point or biweekly? i'm nearing cost basis on VTI now ugh

 

[shepardsun]

Just continuing to dump half my take home pay into index funds every month and hoping to live for another fifty years

 

[GassYous]

I was down 10% 3 months ago… now I’m down 40% and falling around 1-2% a day. Started investing 6 months ago so yay!!

How could you possibly be down 10% 3 months ago? Everything was green

I'm gonna keep buying vti as my 401k contributions roll in. But I think this is a good time to keep holding cash for me as I can pay off my loans instead. Will see what Biden will do in May.

 

[RadOncDoc21]

How could you possibly be down 10% 3 months ago? Everything was green

I'm gonna keep buying vti as my 401k contributions roll in. But I think this is a good time to keep holding cash for me as I can pay off my loans instead. Will see what Biden will do in May.

Not sure but it really started in August/September when I started to experience losses and then early November it really started to go down, after Black Friday it was in free fall.

I do own a lot of tech and “growth” stocks, many Motley Fool recs, so yea not an endorser for them at this time.

 

[IMGASMD]

I misspoken. Down another 5% today….
This is brutal.

 

[deleted126335]

I misspoken. Down another 5% today….
This is brutal.

Depends how you look at it. One year ago the market was 10% lower than it is today.

 

[Mman]

Hopefully not. I'm basically holding, with a combo of VOO and VTI. My roth account is mostly QQQ which sucks but I don't think I will sell. Just HODL. Its ****ing depressing watching this blood bath. But what can j do?? Many of the high flying stocks are already 80% down from their peaks.. I do have about 150k in cash holdings to deploy when things are less volatile.

If you are more than 10 or 15 years from retirement, every drop in the market is good for you long term because the rest of your investments are made at a lower cost basis and will rise more. It is glorious when the market drops for those that are going to be investing a lot of money over the next few years.

 

[GassYous]

I need more money to invest

 

[Mman]

I need more money to invest

end of month paycheck approaching...

 

[deleted126335]

I need more money to invest

Buying the dips is a great strategy until you run out of money to buy the next dip.

 

[anonperson]

Not sure but it really started in August/September when I started to experience losses and then early November it really started to go down, after Black Friday it was in free fall.

I do own a lot of tech and “growth” stocks, many Motley Fool recs, so yea not an endorser for them at this time.

I'm not a big fan of Motley Fool. They constantly tout their occasional hits (Netflix etc) but never mention the misses.

I know they have an ETF but I think you will get better returns with a lower ER using VTI/TSAX

 

[deleted941485]

Higher than abg PE, a pandemic, supply shortages, inflation, rising interest rates, labor shortages…surprised the possibility of recession has not entered the discussion yet in a big way.

I’m not panic selling but I’m certainly hitting the pause button on adding assets at this time. It seems all the stocks i suspected were a bit overvalued are now a problem

 

[nimbus]

Higher than abg PE, a pandemic, supply shortages, inflation, rising interest rates, labor shortages…surprised the possibility of recession has not entered the discussion yet in a big way.

I’m not panic selling but I’m certainly hitting the pause button on adding assets at this time. It seems all the stocks i suspected were a bit overvalued are now a problem

Isn’t it better to sell at all time highs and buy when the sky is falling? I’m too dumb to figure it out so I just buy every month.

 

[GassYous]

Higher than abg PE, a pandemic, supply shortages, inflation, rising interest rates, labor shortages…surprised the possibility of recession has not entered the discussion yet in a big way.

I’m not panic selling but I’m certainly hitting the pause button on adding assets at this time. It seems all the stocks i suspected were a bit overvalued are now a problem

I actually think now is a great time to add assets. I would be buying all the way down except I want to hold cash.

 

[deleted941485]

Isn’t it better to sell at all time highs and buy when the sky is falling?

I’m early to this game. Selling off now and taking profits would be good except I dont really have much in the market to begin with. I’ve only really started buying in the last year.

I still think we are at the beginning of something not great in the market bad correction or recession. I’ll just bank the cash in the vestment acct and hold off buying more until things settle down. If your buying agressivly in last few days your probably also losing money right now.

 

[nimbus]

I’m early to this game. Selling off now and taking profits would be good except I dont really have much in the market to begin with. I’ve only really started buying in the last year.

I still think we are at the beginning of something not great in the market bad correction or recession. I’ll just bank the cash in the vestment acct and hold off buying more until things settle down. If your buying agressivly in last few days your probably also losing money right now.

Good to get these lessons early. Consider it tuition for market school. But I would keep DCA’ing. I automatically buy VITSX with every paycheck.

 

[deleted941485]

Good to get these lessons early. Consider it tuition for market school. But I would keep DCA’ing. I automatically buy VITSX with every paycheck.

I really liked growth ETFs like the RPGs of the world…that is until now lol.

 

[GoBeers]

I contribute monthly to SEP IRA and had been dca'ing into VTI. since everything is going down the drain for who knows how long, I think i'll DCA equally q week instead of q month.

 

[ValentineD]

I liquidated most of my holdings not in a dedicated retirement account back in November. Something something be cautious when others are greedy. I suspect as retail investors continue to get massacred the panic and dash for the door will only accelerate. I'm holding a cash position but I don't think it will be prudent to deploy for quite some time, to see the overall health of the economy. If a stock market correction couples with economic hardships, then it will be time to be greedy.

 

[coffeebythelake]

If you are more than 10 or 15 years from retirement, every drop in the market is good for you long term because the rest of your investments are made at a lower cost basis and will rise more. It is glorious when the market drops for those that are going to be investing a lot of money over the next few years.

i'm still early career and i actually like what i do... decent work life balance, decent number of OFF days, frequent vacations, road trips, etc... who knows how this will change with time, but i plan to work to 67 or older. that gives me another 30 plus years to work.

 

[coffeebythelake]

Good to get these lessons early. Consider it tuition for market school. But I would keep DCA’ing. I automatically buy VITSX with every paycheck.

why VITSX vs. VOO or something else?

 

[chessknt]

I just don’t understand everyone has pulled the five alarm fire of inflation/money printing/the death of the economy and the markets were on fire and now suddenly… what? Where did all of this magically printed money go? It left crypto and stocks and is going back in to bonds? For serious?

 

[coffeebythelake]

Buying the dips is a great strategy until you run out of money to buy the next dip.

 

[nimbus]

why VITSX vs. VOO or something else?

Simplicity. I wanted the total market and not just s&p500.

 

[coffeebythelake]

I just don’t understand everyone has pulled the five alarm fire of inflation/money printing/the death of the economy and the markets were on fire and now suddenly… what? Where did all of this magically printed money go? It left crypto and stocks and is going back in to bonds? For serious?

yeah no kidding. there is a massive supply of money out there, notwithstanding the ease to borrow. that money still is floating somewhere. that money was out of the bag from the trillions of spending over the past 2 years. that doesn't just disappear when the feds hint at raising rates.

also... this:

this is the fed interest rates and changes since ~2005.
we're talking about 0.25% increase increments, maybe 4 times this year.
and everyone is going crazy about it.
seems a bit over-reaction IMO

 

[Mman]

i'm still early career and i actually like what i do... decent work life balance, decent number of OFF days, frequent vacations, road trips, etc... who knows how this will change with time, but i plan to work to 67 or older. that gives me another 30 plus years to work.

then you should get excited every time the market drops. I understand emotionally why it feels bad, but gotta channel the brain cells into resetting those emotions and enjoying the drop in price for something you are going to be a net buyer of.

 

[coffeebythelake]

I was down 10% 3 months ago… now I’m down 40% and falling around 1-2% a day. Started investing 6 months ago so yay!!

Jeez what did u buy back in mid 2021? Doesn't sound like any significant amount of etf

 

[coffeebythelake]

then you should get excited every time the market drops. I understand emotionally why it feels bad, but gotta channel the brain cells into resetting those emotions and enjoying the drop in price for something you are going to be a net buyer of.

Yeah I tell myself that. I've stopped looking at my retirement accounts for that reason. Just continue my monthly contributions to sp500 index fund.

 

[ValentineD]

I just don’t understand everyone has pulled the five alarm fire of inflation/money printing/the death of the economy and the markets were on fire and now suddenly… what? Where did all of this magically printed money go? It left crypto and stocks and is going back in to bonds? For serious?

It goes poof.

 

[RadOncDoc21]

then you should get excited every time the market drops. I understand emotionally why it feels bad, but gotta channel the brain cells into resetting those emotions and enjoying the drop in price for something you are going to be a net buyer of.

I get why this is the way I should be thinking and ultimately I feel like I’m getting there but not having any time to see any real gains for me being a new investor makes it feel like I’ve missed out. I know in 5, 10, 20 years this won’t matter but I still would have liked to see some green in my portfolio.

Disclosure, this isn’t my only retirement account but it’s the one I’m actively picking securities in to invest, so about 30% of my total retirement portfolio. The other ones I haven’t looked at in over a year since it’s full of ETF’s, bonds, etc.

 

[RadOncDoc21]

Jeez what did u buy back in mid 2021? Doesn't sound like any significant amount of etf

Nope, this was my 100% stock portfolio and my experience going into the stock market on my own. It was a separate brokerage account I set up, glad I didn’t go full balls to the wall like I envisioned doing.

 

[GravelRider]

I’ve been thinking about doing away with my emergency fund. What are thoughts on that? I have no non-mortgage debt. I’m starting to build a pretty decent sized nest egg in my investment accounts (taxable). My lines of credit with my credit cards could cover at least 3 months of expenses. My spouse works. Having 3-6 months of expenses sitting in cash seems to be a bit of a drag in this environment. Am I crazy for cutting my emergency fund by at least half and investing it? Maybe investing it all? I-bonds?

Oh yeah…VTSAX and chill.

 

[sethco]

I'm not a big fan of Motley Fool. They constantly tout their occasional hits (Netflix etc) but never mention the misses.

I know they have an ETF but I think you will get better returns with a lower ER using VTI/TSAX

It's kind of ironic that people take investing advice from a "Fool"

 

[coffeebythelake]

I’ve been thinking about doing away with my emergency fund. What are thoughts on that? I have no non-mortgage debt. I’m starting to build a pretty decent sized nest egg in my investment accounts (taxable). My lines of credit with my credit cards could cover at least 3 months of expenses. My spouse works. Having 3-6 months of expenses sitting in cash seems to be a bit of a drag in this environment. Am I crazy for cutting my emergency fund by at least half and investing it? Maybe investing it all? I-bonds?

Oh yeah…VTSAX and chill.

The emergency fund is meant for unexpected life events, and also for opportunities like market dips so you don't feel as freaked out and make rash decisions like selling your positions. Because it is damn bloody and red in thr markets right now, the fight or flight instinct kicks in, it js very easy to hit the sell button and make yourself feel better. Most financiql advisors will say that is a bad decision, because it is nearly impossible to time the market. Both when it will crash and when it will recover. And clearly you didn't catch it before it crashed. I recommend keeping at least some spare money around (or something very liquid and low volatility like bonds)

Yes ot is a drag on your total returns but it serves q good purpose. And if you feel like using some of jt now to "buy the dip" or dollar cost average down I think that is an appropriate use. This is what they refer to as "rebalancing the portfolio," 60/40, 80/20, whatever

 

[coffeebythelake]

I get why this is the way I should be thinking and ultimately I feel like I’m getting there but not having any time to see any real gains for me being a new investor makes it feel like I’ve missed out. I know in 5, 10, 20 years this won’t matter but I still would have liked to see some green in my portfolio.

Disclosure, this isn’t my only retirement account but it’s the one I’m actively picking securities in to invest, so about 30% of my total retirement portfolio. The other ones I haven’t looked at in over a year since it’s full of ETF’s, bonds, etc.

Yes jt is stressful and can be depressing. Just know you aren't the only one feeling this way. Not many people had the foresight or luck to pull out their money before the dipping started. Most people are jn the same boat.

 

[GravelRider]

The emergency fund is meant for unexpected life events, and also for opportunities like market dips so you don't feel as freaked out and make rash decisions like selling your positions. Because it is damn bloody and red in thr markets right now, the fight or flight instinct kicks in, it js very easy to hit the sell button and make yourself feel better. Most financiql advisors will say that is a bad decision, because it is nearly impossible to time the market. Both when it will crash and when it will recover. And clearly you didn't catch it before it crashed. I recommend keeping at least some spare money around (or something very liquid and low volatility like bonds)

Yes ot is a drag on your total returns but it serves q good purpose. And if you feel like using some of jt now to "buy the dip" or dollar cost average down I think that is an appropriate use.

I am pretty disciplined. I don’t get freaked out by market fluctuations and never think about selling when people are talking about recessions. I barely follow the markets and just check my accounts every few months to make sure I haven't gone off the rails with spending. With inflation, keeping a significant amount of cash as cash seems like a bit of a drag when I have other ways to respond to an emergency. Both my spouse and myself are unlikely to get laid off for any reason.

I initially set up my emergency fund when I was in a lot of student debt and was buying my house. Then my emergency fund evolved into a sort of cushion in case I forgot to budget for property taxes (I don’t escrow). I’ve gotten pretty good at directing and automating my monthly cash flow. Now I have this chunk of cash sitting there laughing at me and losing value. I’m not even thinking about “buying the dip” (though buying some queso dip sounds pretty delicious). I just wonder about the utility of a 3-6 month emergency fund when I have other ways to respond to an emergency.

 

[GravelRider]

Nope, this was my 100% stock portfolio and my experience going into the stock market on my own. It was a separate brokerage account I set up, glad I didn’t go full balls to the wall like I envisioned doing.

Stop trying to actively pick stocks. It’s boring and not worth your time. The people who call themselves “experts” aren’t even very good at it.

Forget Motley Fool. Do this instead:

Bogleheads

www.bogleheads.org

 

[GassYous]

I am pretty disciplined. I don’t get freaked out by market fluctuations and never think about selling when people are talking about recessions. I barely follow the markets and just check my accounts every few months to make sure I haven't gone off the rails with spending. With inflation, keeping a significant amount of cash as cash seems like a bit of a drag when I have other ways to respond to an emergency. Both my spouse and myself are unlikely to get laid off for any reason.

I initially set up my emergency fund when I was in a lot of student debt and was buying my house. Then my emergency fund evolved into a sort of cushion in case I forgot to budget for property taxes (I don’t escrow). I’ve gotten pretty good at directing and automating my monthly cash flow. Now I have this chunk of cash sitting there laughing at me and losing value. I’m not even thinking about “buying the dip” (though buying some queso dip sounds pretty delicious). I just wonder about the utility of a 3-6 month emergency fund when I have other ways to respond to an emergency.

I mean yeah I could borrow against my retirement or something but I just feel more secure having a few gs laying around just in case. I also hold some physical cash for if the financial system goes down temporarily for whatever reason.

 

[Neopolymath]

I’ve been thinking about doing away with my emergency fund. What are thoughts on that? I have no non-mortgage debt. I’m starting to build a pretty decent sized nest egg in my investment accounts (taxable). My lines of credit with my credit cards could cover at least 3 months of expenses. My spouse works. Having 3-6 months of expenses sitting in cash seems to be a bit of a drag in this environment. Am I crazy for cutting my emergency fund by at least half and investing it? Maybe investing it all? I-bonds?

Oh yeah…VTSAX and chill.

We are on the same page. I keep like 30k on hand for when I want to buy random things to flip. No point in more money for my risk calculations.

 

[OptionOffense]

I misspoken. Down another 5% today….
This is brutal.

i take it y ou werent alive for the 2008-10 crash. We spent months where we would be down 1-4 percent daily.

 

[coffeebythelake]

 

[IMGASMD]

Just realized, we actually ended in the positive territory. I ended up +1K. WTF?!

 

[coffeebythelake]

Just realized, we actually ended in the positive territory. I ended up +1K. WTF?!

for today yes, it made a late-day upstroke.
futures are negative

 

[nimbus]

Just realized, we actually ended in the positive territory. I ended up +1K. WTF?!

Yes. Wild ride today. Hodl!! 😂

 

[DoctwoB]

Early career here, so happy to have the discount. I’ll keep buying VTSAX and some VTIAX and a touch of VVIAX every month for the next 25 years and see what happens. If I had more in taxable or any dry powder I’d tax loss harvest, and reallocate to buy even more stocks. (almost all of it went for downpayment, and glad it did. Holding a big asset at 2.4% seems like a smart move in this environment. Plus, gotta live).

Remember. Dips and corrections and recessions happen. We were probably overdue. This dip is not magically different despite what every talking head on TV claims.

 

[coffeebythelake]

Yes. Wild ride today. Hodl!! 😂


View attachment 348938

Buying the dip? Or trying to send JPow a message?