Author Topic: Market Hype about Correction? VTSAX Roth question  (Read 898 times)

Dragonstrike

  • Stubble
  • **
  • Posts: 103
Market Hype about Correction? VTSAX Roth question
« on: July 31, 2018, 05:00:02 PM »
So I know alot of people are worried about this upcoming market correction by years end (or sooner?), and yes timing the market and such...

Anyone currently worried about it with good reason and are you being proactive about your investments, or will you be riding the storm out?

My only concern is my VTSAX Roth IRA fund.  I've been putting in $500 each month during the year until maxing the contributions, but was wondering if I should switch the VTSAX fund to the Vanguard Federal Money Market Fund for safety until this market event (if it) hits.

Any suggestions or feedback?

Travis

  • Handlebar Stache
  • *****
  • Posts: 2255
  • Location: Arizona
Re: Market Hype about Correction? VTSAX Roth question
« Reply #1 on: July 31, 2018, 05:35:24 PM »
So I know alot of people are worried about this upcoming market correction by years end (or sooner?), and yes timing the market and such...

Anyone currently worried about it with good reason and are you being proactive about your investments, or will you be riding the storm out?

My only concern is my VTSAX Roth IRA fund.  I've been putting in $500 each month during the year until maxing the contributions, but was wondering if I should switch the VTSAX fund to the Vanguard Federal Money Market Fund for safety until this market event (if it) hits.

Any suggestions or feedback?

Looks like you answered your own question. Do you need the money in your IRA this year? If not, go find a book to read to keep your mind off the correction boogeyman. 

MrDelane

  • Bristles
  • ***
  • Posts: 482
Re: Market Hype about Correction? VTSAX Roth question
« Reply #2 on: July 31, 2018, 05:37:36 PM »
So I know alot of people are worried about this upcoming market correction by years end (or sooner?), and yes timing the market and such...

Anyone currently worried about it with good reason and are you being proactive about your investments, or will you be riding the storm out?

My only concern is my VTSAX Roth IRA fund.  I've been putting in $500 each month during the year until maxing the contributions, but was wondering if I should switch the VTSAX fund to the Vanguard Federal Money Market Fund for safety until this market event (if it) hits.

Any suggestions or feedback?

Be careful with the language you use.  You are talking about predicting the future, which is complete speculation.
So there is no sense in talking about "this upcoming market correction" (which assumes it is a forgone conclusion).
Instead, you should be asking about "a potential market correction."

Secondly - no one could possibly be worried about it "with good reason."
If there were clear and good reasons for predicting a correction then the the correction woudl have already happened as everyone pulled their money into safer investments in order to avoid the "upcoming" correction which they had "good reason" to be worried about.

I'm not trying to be smartass here.  I'm simply pointing out that the language you use can fuel your fear, uncertainty and doubt.

I have no idea if a storm is coming.
I have no reason, good or bad, to think a correction is coming or not coming.
And I don't believe anyone else does either.


terran

  • Handlebar Stache
  • *****
  • Posts: 1342
Re: Market Hype about Correction? VTSAX Roth question
« Reply #3 on: July 31, 2018, 06:04:33 PM »
Yes, lots of people are worried that a correction is imminent. Lots of people have been worries that a correction is imminent for oh, say the last 9 years. How happy do you think all those people that have been worried sometime in the last 9 years would be if they moved to cash? Perhaps you should consider ignoring those who are worried now. Things will go down, and they will go back up again. Don't sell and don't worry about it.

PizzaSteve

  • Bristles
  • ***
  • Posts: 322
Re: Market Hype about Correction? VTSAX Roth question
« Reply #4 on: July 31, 2018, 06:11:37 PM »
Stocks are not short term investments.  They go down sometimes, and you might need to wait 10 or more years to recover your funds.  Worst case, a economic crash makes them stay low.

That said, they are among the highest upside investments, with a great track record of long term growth with the economy.

If these facts make you hesitant to own them then I suggest you dont until you are comfortable.  Read and learn.  FIRE is possible with other investments, including businesses, real estate, even old fashioned savings bonds or CDs, though it will likely take more savings and working time with a low return asset like a CD.

aboatguy

  • Stubble
  • **
  • Posts: 121
Re: Market Hype about Correction? VTSAX Roth question
« Reply #5 on: July 31, 2018, 06:38:07 PM »
If it gets rough I'll be riding the storm out. 

https://www.youtube.com/watch?v=GVFgEBq0EKM
« Last Edit: July 31, 2018, 06:47:16 PM by aboatguy »

sokoloff

  • Handlebar Stache
  • *****
  • Posts: 1198
Re: Market Hype about Correction? VTSAX Roth question
« Reply #6 on: July 31, 2018, 08:44:10 PM »
Be careful with the language you use.  You are talking about predicting the future, which is complete speculation.
So there is no sense in talking about "this upcoming market correction" (which assumes it is a forgone conclusion).
Instead, you should be asking about "a potential market correction."
That there will be a next market correction is a certainty.

Whether it will be in 3 days, 3 months, 3 years, or 3 decades is the uncertainty (though it's spectacularly unlikely to be the last of those).

Telecaster

  • Handlebar Stache
  • *****
  • Posts: 1224
  • Location: Seattle, WA
Re: Market Hype about Correction? VTSAX Roth question
« Reply #7 on: July 31, 2018, 09:03:50 PM »
So I know alot of people are worried about this upcoming market correction by years end (or sooner?), and yes timing the market and such...

There is definitely a market correction coming.  People who claim to know when it is coming are either charlatans or damn fools. 

Kalergie

  • Stubble
  • **
  • Posts: 200
  • Location: European expat living almost everywhere
Re: Market Hype about Correction? VTSAX Roth question
« Reply #8 on: August 01, 2018, 02:48:03 AM »
You have to be right twice to be successful in predicting a market correction. Once just before the pop and another time just before the rebound. That's like winning the lottery twice.

DS

  • Bristles
  • ***
  • Posts: 280
  • Age: 117
  • Location: Universe
Re: Market Hype about Correction? VTSAX Roth question
« Reply #9 on: August 01, 2018, 08:50:49 AM »
Top is in.

Read about it here, all 64 pages of useful insight:

https://forum.mrmoneymustache.com/investor-alley/top-is-in/

Travis

  • Handlebar Stache
  • *****
  • Posts: 2255
  • Location: Arizona
Re: Market Hype about Correction? VTSAX Roth question
« Reply #10 on: August 01, 2018, 09:24:00 AM »
Top is in.

Read about it here, all 64 pages of useful insight:

https://forum.mrmoneymustache.com/investor-alley/top-is-in/

Oh, and we already had a correction in February.  Some of us were busy that month and missed it and we're all still chugging along.  That's how impactful a correction is during your working years. 

DreamFIRE

  • Handlebar Stache
  • *****
  • Posts: 1108
Re: Market Hype about Correction? VTSAX Roth question
« Reply #11 on: August 01, 2018, 04:23:32 PM »
Top is in.

Read about it here, all 64 pages of useful insight:

https://forum.mrmoneymustache.com/investor-alley/top-is-in/

Oh, and we already had a correction in February.  Some of us were busy that month and missed it and we're all still chugging along.  That's how impactful a correction is during your working years.

Finally, someone mentions it.  I was reading this thread wondering how everyone had missed the correction we already had this year.   Both the Dow and S&P dropped 10%+ from the January 26th high and have never recovered to the previous high.  The Dow has an even longer way to go to recover than the S&P.

robartsd

  • Handlebar Stache
  • *****
  • Posts: 1678
  • Location: Northern California
Re: Market Hype about Correction? VTSAX Roth question
« Reply #12 on: August 01, 2018, 05:04:49 PM »
Oh, and we already had a correction in February.  Some of us were busy that month and missed it and we're all still chugging along.  That's how impactful a correction is during your working years.

Finally, someone mentions it.  I was reading this thread wondering how everyone had missed the correction we already had this year.   Both the Dow and S&P dropped 10%+ from the January 26th high and have never recovered to the previous high.  The Dow has an even longer way to go to recover than the S&P.
I hadn't realized that we hadn't fully recovered yet. Yea, stocks are still on sale! I remember being a bit bummed that I'd missed the low when I finally got around to making my last 2017 IRA contributions in April (had automatic contributions running through December, but wanted first few contributions in 2018 to be applied to 2017 so I had let automatic contributions stop - I'm OK with January's contribution going in as 2019, so I'm now on automatic with no end date).