I didnt have much to begin with only lost about 12k, I have nothing anyway. My mother lost roughly 100k in her retirement fund from all this crashing. My grandmother even more. How much have you lost in Trump’s Tantrum Tariffs game?
I lost zero because the number going down doesn’t equal the value going down. You only lose if you panic sell.
You still lose time, and are now stuck in an unprofitable investment rather than a profitable one. So you are also losing all the value you would have gained had we stayed the course instead of doing this dumb shit. Thats called opportunity cost.
Look up the stock market around March 2020. Huge dip then rebound to pretty much the same trajectory. As long as you left your stuff to sit, you’re still doing fine. There’s no reason to think the massive rebound would have still occurred without the dip.
I fortuitously moved all my VTI into VTV a couple weeks ago to divest myself of TSLA, and over the past two days have been actively keeping the balance of my 60/40 equities/bonds portfolio by selling a little bit of BND and BNDX to get some more VTV as it sunk. Didn’t need to modify the VXUS portion.
Sure was nice to have those bond portions to assuage the decline.
Trying to beat the market is a waste of time. You’re not stuck in an unprofitable investment unless you’re trying to get rich quick. You invest based on your strategy and value of said investment. It isn’t just because the number goes up and down. Time in the market wins every time. Read the founder of Vanguard’s book on investing.
Ordinarily, yes. But in this case, we’re dealing with a type of risk we don’t usually have to worry about: sovereign risk. It is entirely possible that Trump could be fucking up the country in ways that the market will never come back from because companies just get entirely destroyed or nationalized or who knows what.
In that sort of case, changing your investments – not timing the market, but responding to the potentially permanent difference in circumstances – can make sense.
This is the perfect mantra for getting scammed. It’ll always go back up, guaranteed! Just keep putting money in, you only lose if you take money out! Yes, it has worked so far, but past performance does not guarantee future results.
You’ve got two choices. 1 - continue to invest using DCA even thought the market is down.
2 - sell, move your money to a CMA or something, likely at a loss for some of it, and pay your capital gains.
Because the option you are engaging in FUD over is that the market does not come back up. My friend, if everything goes to shit in that scenario and you don’t have a pile of cash under your mattress, you’re just as fucked as everyone else. There will be a run on the banks and there will be no money for anyone. So either put stacks of $20s in the freezer or keep investing.
I’m not arguing the market never comes back up, but there have been prolonged periods of time where markets do not recover to previous highs. After the great depression, the US stock market took about 30 years to recover to its previous high and continue growing (https://www.macrotrends.net/2324/sp-500-historical-chart-data). Similarly, it took Japan’s stock market 30 years to recover to its previous high (https://www.macrotrends.net/2593/nikkei-225-index-historical-chart-data) and it’s already on its way down.
The stock market does not represent economic reality. There are too many tricks with leverage in many forms, including derivatives, which distort the true value. Too much importance is placed on this glorified casino and for the past few decades, the go-to solution has been to pump money into the system at any sign of trouble. It’s not sustainable to keep feeding this beast for the sake of the ultrawealthy who own the vast majority of it.
A stock market crash does not necessarily mean a run on the banks. There was a run on the banks after the stock market crash of 1929 because banks were over-leveraged with loans used to pump the stock market. That same mistake is being made now, but the difference this time is the government guaranteeing deposits. There are other issues where the government may not be able to fulfill those guarantees, but at that point, is this fragile system worth keeping up? We can’t keep it up forever.
It’s not FUD to point out that infinite growth is not sustainable. On the flipside, the permanent optimism of claiming the line will always go up in the end and not taking into account the amount of time it can take for that to happen is irrational. The key as always is to diversify, but the makeup of that diversification can vary greatly and the stability of the stock market is not guaranteed.
Well… you haven’t watched the stock market or any money market enough then.
I haven’t sold, so none. I’m going to buy a bit more. Even if it goes down I can still get dividends and borrow against it rather than selling if i need
Nothing because I haven’t sold anything and aren’t planning to either. I hold and keep buying more. Just like I did thru the previous dips.
I had a trust fund of stocks and my mum said she sold them whenever a crash happened… Why…
Yeah, buying after the crash happens makes no sense. If you can somehow( for lack of a better phrase foresee )a crash happening, and then sell before the crash, then buy back in after the crash. That makes sense because then you’re selling high and buying low.
But buying after the crash makes no sense because now you’re already down. I feel for you on that one
I decided to adult and buy a few stocks. So far I’ve lost six hundred dollars.
Yes that doesn’t seem like a lot but I’ve never invested before and I’m not exactly rich.
Haven’t checked my retirement because I’ve never expected to be able to retire in this country. I will work till I die. Yay, American dream! 🙁
once the little people sell their assets for pennies, they will just bulk buy it at a bargain and reverse the shitty decisions that made it crash.
just legalized robbery-with-extra-steps.
I hope no one sells, if anything they should buy more. Assuming, and that’s a big word here, they can afford to.
the fact its crashing so hard means quite a bunch of money was already pulled out.
You make it sound mandatory. Every financial literacy thing will tell you not to panic sell.
not everyone has good financial education, and not everyone can afford to lose so much money when they are currently living off it.
Yep. Poverty sucks. If you can’t afford a portfolio you won’t be affected, though.
Vulnerable people giving away money without googling it first is a thing that happens, but that’s not exactly a conspiracy either.
