Author Topic: Is this bigger than a "don't try and time the market" event?  (Read 13161 times)

Cannot Wait!

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Is this bigger than a "don't try and time the market" event?
« on: February 07, 2025, 03:17:34 PM »
This craziness feels different than previous world events.  When SHOULD one pull out of the stock market? It feels like things could blow up really fast...
How confident are people here feeling about riding this wave specifically in terms of the stock market not crashing?

AuspiciousEight

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Re: Is this bigger than a "don't try and time the market" event?
« Reply #1 on: February 07, 2025, 03:39:12 PM »
I am never planning on pulling out of the stock market.

Metalcat

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Re: Is this bigger than a "don't try and time the market" event?
« Reply #2 on: February 07, 2025, 03:47:10 PM »
Where would you put your money that you anticipate it would be safe from the global impact of the US economy collapsing AND never recovering?

Cannot Wait!

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Re: Is this bigger than a "don't try and time the market" event?
« Reply #3 on: February 07, 2025, 03:49:29 PM »
I'm thinking of buying land to homestead on.

Fru-Gal

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Re: Is this bigger than a "don't try and time the market" event?
« Reply #4 on: February 07, 2025, 03:55:34 PM »
While I understand your concern, think about the billionaires currently helming US government. What happens to their fortunes in a crash? Not to say a crash won't happen, but a permanent crash does not seem to be in the interests of ALL the billionaires, at least the sane ones.

I don't really have any other option than to stay the course. And I do have the cautionary tale of Trump's 1st term, when I knew several people who exited the market. We all know how that worked out.

Historically, most major stock market returns come after a crash. Like, immediately after -- which you can't time.

The answer has to be diversification, not just monetary but in other prepping. I already de-internationalized my investments in the last few years so I can't fix that LOL. I don't have a large cash position. I also can think of ways to make money by working/selling stuff, if push comes to shove. Keep your expenses low.
« Last Edit: February 07, 2025, 03:57:27 PM by Fru-Gal »

Metalcat

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Re: Is this bigger than a "don't try and time the market" event?
« Reply #5 on: February 07, 2025, 03:55:57 PM »
I'm thinking of buying land to homestead on.

To me it doesn't make much sense to pull your money out of the market and put it into land in a country that's burning to the ground around you.

If the US market collapses without recovery, having a piece of paper that says you own land probably isn't going to mean much.

If enough social order exists for land ownership to be real, then even if the markets do crash, they'll likely recover, because a group of 300M people who are organized and civilized enough to respect land titles is going to be a profitable market to do business in.

HPstache

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Re: Is this bigger than a "don't try and time the market" event?
« Reply #6 on: February 07, 2025, 04:05:02 PM »
Keep calm & index on

AuspiciousEight

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Re: Is this bigger than a "don't try and time the market" event?
« Reply #7 on: February 07, 2025, 04:08:45 PM »
Where would you put your money that you anticipate it would be safe from the global impact of the US economy collapsing AND never recovering?

This.

I don't have much faith in people, humanity, or the government. But I *do* have faith that people will tend to repeat patterns of behavior, and my life experience tells me that there are a *lot* of people who are very self interested.

People will talk crazy talk on Facebook, or on the news, but the moment they have to pay triple for their food or a PS5 or something and realize that the health of society is in their *own* best interest, things will calm down.

I'm prepared for a variety of scenarios to play our, but I'm personally not that worried.

When the stock market was collapsing in 2020, I wasn't worried at all about the stock market. I was worried about COVID and how it would impact me, my family, siblings, etc.

People tend to come to their senses when they start to get personally impacted by things.

Tasse

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Re: Is this bigger than a "don't try and time the market" event?
« Reply #8 on: February 07, 2025, 04:10:46 PM »
We spent some time reconsidering our risk tolerance. Decided it's still pretty high for now based on our personal circumstances (still accumulating). We pulled about $40k out of the market in December to put toward a down payment fund, since we expect to need that within the next few years, and even that was only because we had some 0% capital gains space and $40k taxable in a fund we didn't like.

sixwings

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Re: Is this bigger than a "don't try and time the market" event?
« Reply #9 on: February 07, 2025, 04:15:05 PM »
Where would you put your money that you anticipate it would be safe from the global impact of the US economy collapsing AND never recovering?

This.

I don't have much faith in people, humanity, or the government. But I *do* have faith that people will tend to repeat patterns of behavior, and my life experience tells me that there are a *lot* of people who are very self interested.

People will talk crazy talk on Facebook, or on the news, but the moment they have to pay triple for their food or a PS5 or something and realize that the health of society is in their *own* best interest, things will calm down.

I'm prepared for a variety of scenarios to play our, but I'm personally not that worried.

When the stock market was collapsing in 2020, I wasn't worried at all about the stock market. I was worried about COVID and how it would impact me, my family, siblings, etc.

People tend to come to their senses when they start to get personally impacted by things.

I'm hopeful that most of the stuff is just Trump being insane. There will be tax cuts, awful social policies, and the ending of some government programs but not the collapse and non-recovery of the US economy. Basic neo-con stuff but more racist. At this point that's probably the best outcome, which sucks.

rocketpj

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Re: Is this bigger than a "don't try and time the market" event?
« Reply #10 on: February 07, 2025, 04:41:55 PM »
Not timing the market, but I did rebalance, and in that process I downgraded my US exposure and spread my global exposure a lot more.  The big capital will flow somewhere if the US has a crash.

Given that the US has decided my country - a longtime ally - is now an enemy because of STUPID reasons, I see no reasons to support the US economy with my investment capital any longer.

Cranky

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Re: Is this bigger than a "don't try and time the market" event?
« Reply #11 on: February 07, 2025, 04:43:58 PM »
Well, what if you he stock market does crash? What if it never recovers? I feel like my investment account will be the least of my worries.

reeshau

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Re: Is this bigger than a "don't try and time the market" event?
« Reply #12 on: February 07, 2025, 04:47:54 PM »
Right; things that are so bad, that you wouldn't be waiting around for your 401k statement or bank branch for, aren't really things to try to hedge in your investing.  They require different preparation, if that' what you believe.

See: "How Do You Invest in the Face of an Apocalypse?"

ATtiny85

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Re: Is this bigger than a "don't try and time the market" event?
« Reply #13 on: February 07, 2025, 05:21:16 PM »
What event are we talking about? I bought several thousand dollars worth of VTSAX this week. Same as every month on the 5th. Was I supposed to jam it in my mattress out of fear? Maybe, but I have no fear, so that’s not happening.

I have bought US stocks every month since the mid-90s, through all sorts of doom and gloom.

Metalcat

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Re: Is this bigger than a "don't try and time the market" event?
« Reply #14 on: February 07, 2025, 06:00:04 PM »
Well, what if you he stock market does crash? What if it never recovers? I feel like my investment account will be the least of my worries.

That's exactly it.

Say you somehow manage to predict exactly the right sequence of investment moves to preserve the max value of your wealth...

Um...how are you going to manage the massive civil unrest that comes with a situation where the US is no longer a major economic force internationally???

300 million people is A LOT of market, whether democracy survives of not.

Tyson

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Re: Is this bigger than a "don't try and time the market" event?
« Reply #15 on: February 07, 2025, 08:30:24 PM »
Clearly, this time THE TOP IS IN.  Thorstach was right all along.

swashbucklinstache

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Re: Is this bigger than a "don't try and time the market" event?
« Reply #16 on: February 07, 2025, 09:32:23 PM »
I'm changing nothing. But people also jump to the extremes and that's not always right either. The US hasn't always been on top, not by half as such a young country, and won't always be. The risk of being invested at peak US and seeing it slide to a middling or lower quartile economy over a 50 year retirement is not zero. That wouldn't be blood in the streets. It'd be like Argentina, Netherlands, Britain, and other world leaders who were displaced and fallen to the middle or much below over a century. If US SWR is 4% and the same authors put forth a low 3% worldwide withdrawal rate after removing Germany/Italy/Japan WW2 era, what would we guess at a WR for a global economic superpower sliding into mediocrity?

Again, I'm changing nothing because I don't think that will happen nor do I think the short term economic impacts will be too terrible. The most I'd suggest is OP may be realizing their long term risk tolerance is not as high as they think it is or they should go on a low information diet for a while. A probability distribution with a reasonable chance of predicting the future probably includes this nonsense dropping returns for the next decade by a couple percent, maybe even a few -20% years. That will happen during your retirement no matter what so either be prepared or not. It probably doesn't include the US dropping rapidly and you being able to act on that information in a strongly beneficial way.

fuzzy math

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Re: Is this bigger than a "don't try and time the market" event?
« Reply #17 on: February 07, 2025, 09:51:26 PM »
I correctly timed the COVID stock drop. I sold a bunch of stuff and moved it to low risk stuff in Feb 2020 on the highest day before it crashed.

I did not foresee it rebounding 2-3 months later and I ended up missing buying back in.

Take what you want from that. There will be a next drop. Will it be brief? Will it be sustained? What will you do if you're wrong? How will you react later if you're right?

reeshau

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Re: Is this bigger than a "don't try and time the market" event?
« Reply #18 on: February 07, 2025, 10:09:58 PM »
I correctly timed the COVID stock drop. I sold a bunch of stuff and moved it to low risk stuff in Feb 2020 on the highest day before it crashed.

I did not foresee it rebounding 2-3 months later and I ended up missing buying back in.

Take what you want from that. There will be a next drop. Will it be brief? Will it be sustained? What will you do if you're wrong? How will you react later if you're right?

That's another key part of why it's a fool's game.  You have to guess right.  Twice.  In a row.  Or, you still lose.

MustacheAndaHalf

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Re: Is this bigger than a "don't try and time the market" event?
« Reply #19 on: February 07, 2025, 11:45:47 PM »
I correctly timed the COVID stock drop. I sold a bunch of stuff and moved it to low risk stuff in Feb 2020 on the highest day before it crashed.

I did not foresee it rebounding 2-3 months later and I ended up missing buying back in.

Take what you want from that. There will be a next drop. Will it be brief? Will it be sustained? What will you do if you're wrong? How will you react later if you're right?

That's another key part of why it's a fool's game.  You have to guess right.  Twice.  In a row.  Or, you still lose.

During Covid, the overall market didn't crash as far as some stocks (restaurants, airlines, hotels, retail, ...).  At the bottom, I bought into those beaten up stocks, and held until they recovered.  By using "recovery" as my sell point, I removed the guesswork from timing the sale.  I documented it in a journal on this forum.

Warren Buffet ranks among the best investors, and unlike most hedge fund managers, his investments were all publicly visible.  Berkshire Hathaway is the largest company outside big tech in the public U.S. markets.  He advises people to index, to buy the S&P 500 and hold.  It is worth noting, however, that he's sitting on the largest cash pile in Berkshire's history.  I imagine he'll go on a shopping spree if we have a crash.

2Birds1Stone

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Re: Is this bigger than a "don't try and time the market" event?
« Reply #20 on: February 08, 2025, 03:11:37 AM »
This craziness feels different than previous world events.  When SHOULD one pull out of the stock market? It feels like things could blow up really fast...
How confident are people here feeling about riding this wave specifically in terms of the stock market not crashing?

Pull out, right before you feel like you're going to.........oh wait......

Ignore the noise, things might get worse before they get better, but there's nothing different about today than any other point in time when things felt like they were going to fall apart.....which is quite often, we just tend to forget quickly.

Cannot Wait!

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Re: Is this bigger than a "don't try and time the market" event?
« Reply #21 on: February 08, 2025, 05:27:16 AM »
This craziness feels different than previous world events.  When SHOULD one pull out of the stock market? It feels like things could blow up really fast...
How confident are people here feeling about riding this wave specifically in terms of the stock market not crashing?

Pull out, right before you feel like you're going to.........oh wait......
snort

RWD

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Re: Is this bigger than a "don't try and time the market" event?
« Reply #22 on: February 08, 2025, 07:31:05 AM »
This craziness feels different than previous world events.  When SHOULD one pull out of the stock market? It feels like things could blow up really fast...
How confident are people here feeling about riding this wave specifically in terms of the stock market not crashing?
Pull out, right before you feel like you're going to.........oh wait......
snort
This only works if you're on the top.

FireLane

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Re: Is this bigger than a "don't try and time the market" event?
« Reply #23 on: February 08, 2025, 09:22:37 AM »
While I understand your concern, think about the billionaires currently helming US government. What happens to their fortunes in a crash? Not to say a crash won't happen, but a permanent crash does not seem to be in the interests of ALL the billionaires, at least the sane ones.

This is my thinking, too.

In addition to what others have said about there being no safe option in case of a a U.S. collapse, Trump's administration is run by and for billionaire oligarchs. They may be evil, but they know what is and isn't in their interest.

They're fine with him inflicting misery on the working class, but they don't want a market crash that would decrease their net worth. Notice how swiftly the tariff threats were withdrawn when stocks reacted badly.

If you're a FIREd person living off investments, you have that in common with the oligarch class. Count on them to protect their own fortunes, and hopefully that will protect us too.

reeshau

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Re: Is this bigger than a "don't try and time the market" event?
« Reply #24 on: February 08, 2025, 09:35:37 AM »
If you're a FIREd person living off investments, you have that in common with the oligarch class. Count on them to protect their own fortunes, and hopefully that will protect us too.

I do feel this conflict, deeply.  I am amping up my charitable giving, as my stache grows and grows, and most likely will benefit from whatever tax package comes to pass.
« Last Edit: February 08, 2025, 12:55:59 PM by reeshau »

iris lily

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Re: Is this bigger than a "don't try and time the market" event?
« Reply #25 on: February 08, 2025, 10:32:41 AM »

VanillaGorilla

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Re: Is this bigger than a "don't try and time the market" event?
« Reply #26 on: February 08, 2025, 11:17:07 AM »
If you're a FIREd person living off investments, you have that in common with the oligarch class. Count on them to protect their own fortunes, and hopefully that will protect us too.

I do feel this conflict, deeply.  I am amping up my charitable giving, as my stache grows and grows, and moat likely will benefit from whatever tax package comes to pass.
Even as a FIRE-minded person you have more in common with the billionaires than you do with the average American. A million dollar portfolio puts you in the top 12th percentile of the country, across all ages. A median American has a liquid net worth of about $65k. 

If the current political climate makes you want to dump your portfolio you might want to do some serious emotional training - you're going to have to weather much bigger storms in the future.

Rob_bob

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Re: Is this bigger than a "don't try and time the market" event?
« Reply #27 on: February 08, 2025, 12:03:44 PM »
What event are we talking about? I bought several thousand dollars worth of VTSAX this week. Same as every month on the 5th. Was I supposed to jam it in my mattress out of fear? Maybe, but I have no fear, so that’s not happening.

I have bought US stocks every month since the mid-90s, through all sorts of doom and gloom.

+1

Cannot Wait!

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Re: Is this bigger than a "don't try and time the market" event?
« Reply #28 on: February 08, 2025, 01:42:17 PM »
While I understand your concern, think about the billionaires currently helming US government. What happens to their fortunes in a crash? Not to say a crash won't happen, but a permanent crash does not seem to be in the interests of ALL the billionaires, at least the sane ones.
I was thinking about "the billionaires that are currently helming US government" - that's what has me worried. This kind of fuckery is unprecedented.  Maybe they could make crypto the new currency and make the stock market unstable? I don't know.
And where are the sane billionaires?

Morning Glory

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Re: Is this bigger than a "don't try and time the market" event?
« Reply #29 on: February 08, 2025, 02:44:00 PM »
While I understand your concern, think about the billionaires currently helming US government. What happens to their fortunes in a crash? Not to say a crash won't happen, but a permanent crash does not seem to be in the interests of ALL the billionaires, at least the sane ones.
I was thinking about "the billionaires that are currently helming US government" - that's what has me worried. This kind of fuckery is unprecedented.  Maybe they could make crypto the new currency and make the stock market unstable? I don't know.
And where are the sane billionaires?
cross hairs.
Since Musk isn't a real government employee,  can he be held personally liable for damages if he is sued? Those are some deep pockets.

Ron Scott

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Re: Is this bigger than a "don't try and time the market" event?
« Reply #30 on: February 08, 2025, 04:02:24 PM »
The 4% guardians like to point to how well it held up in the past hundred years. We had a world war, a depression, multiple recessions, VietNam and the 20–years’ Middle East wars, political assassinations, Trump 1.0, and lotsa enemies with nukes—and we’re fine.

What makes today worse perhaps is the fairly high number of large-scale unknowns. You’ve got a bonkers Trump 2.0; more highly sophisticated superpowers that don’t get along than we’ve had before; AI/Tech that even it’s promoters believe could become unsafe; the huge and growing costs of climate change—include the growing mass migrations from poor countries; 2 major generations in the US that are economically demoralized; crazy ass debt; an incredibly highly-valued market that seems to have been melting up for years; and a general consensus in the world that economic globalization has failed. Plus, the US seems to have been cooking the jobs reports and inflation numbers to calm us down over inequality for years and it’s all coming home to roost.

My barometer has always been Buffet. Is he 50% in cash now?


MustacheAndaHalf

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Re: Is this bigger than a "don't try and time the market" event?
« Reply #31 on: February 08, 2025, 05:10:20 PM »
My barometer has always been Buffet. Is he 50% in cash now?
Buffet is holding a $325 billion cash pile out of Berkshire's $1.02 trillion market cap, so roughly 1/3rd cash.  The most likely reason he's hoarding cash is the "buffet indicator", dividing the stock market's total valuation by GDP.

"The Stock Market is Significantly Overvalued according to Buffett Indicator. Based on the historical ratio of total market cap over GDP (currently at 204.1%), it is likely to return -0.1% a year from this level of valuation, including dividends."
https://www.gurufocus.com/stock-market-valuations.php

One flaw is revealed by the largest company Buffet has invested in: Apple.  They sell iPhones all over the world, not just in the U.S.  Dividing the market cap of multinational companies by U.S. GDP seems to ignore their international production and markets.  I also don't know if Buffet has mentioned his indicator recently, or what he thinks about it now.

Just Joe

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Re: Is this bigger than a "don't try and time the market" event?
« Reply #32 on: February 09, 2025, 09:03:14 AM »
This craziness feels different than previous world events.  When SHOULD one pull out of the stock market? It feels like things could blow up really fast...
How confident are people here feeling about riding this wave specifically in terms of the stock market not crashing?

Pull out, right before you feel like you're going to.........oh wait......
snort

Don't wait. Unles you are trying to start a family... ;)

Log

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Re: Is this bigger than a "don't try and time the market" event?
« Reply #33 on: February 09, 2025, 09:42:54 AM »
How you feel now is likely very similar to how Republicans felt when Joe Biden took office. Economic sentiment these days has an extraordinarily large partisan political bias. If they had sold off because of political winds shifting, they would have missed out on a lot of growth.

Look at this chart and take a deep breath. https://images.app.goo.gl/JHqrW2k9ZhBynWyx8

Don’t be a partisan doomer. Don’t try to time the market.

Morning Glory

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Re: Is this bigger than a "don't try and time the market" event?
« Reply #34 on: February 09, 2025, 10:37:56 AM »
How you feel now is likely very similar to how Republicans felt when Joe Biden took office. Economic sentiment these days has an extraordinarily large partisan political bias. If they had sold off because of political winds shifting, they would have missed out on a lot of growth.

Look at this chart and take a deep breath. https://images.app.goo.gl/JHqrW2k9ZhBynWyx8

Don’t be a partisan doomer. Don’t try to time the market.

The market will be fine. Stocks will probably go up because companies can make a ton of money by charging junk fees, misclassifying their employees to get out of paying overtime,  and dumping pollutants into the nearest body of water.

 Can I still be a partisan doomer about non-stock things that affect my quality of life? No amount of stock going up can replace being allowed to make my own healthcare decisions or read whatever I want or being able to trust that the meat I  buy won't make me sick.
« Last Edit: February 09, 2025, 10:42:31 AM by Morning Glory »

Log

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Re: Is this bigger than a "don't try and time the market" event?
« Reply #35 on: February 09, 2025, 10:46:24 AM »
How you feel now is likely very similar to how Republicans felt when Joe Biden took office. Economic sentiment these days has an extraordinarily large partisan political bias. If they had sold off because of political winds shifting, they would have missed out on a lot of growth.

Look at this chart and take a deep breath. https://images.app.goo.gl/JHqrW2k9ZhBynWyx8

Don’t be a partisan doomer. Don’t try to time the market.

The market will be fine. Stocks will probably go up because companies can make a ton of money by charging junk fees, misclassifying their employees to get out of paying overtime,  and dumping pollutants into the nearest body of water.  Can I still be a partisan doomer about non-stock things that affect my quality of life? No amount of stock going up can replace being allowed to make my own healthcare decisions or read whatever I want.

Feel free.

Maybe just try to keep in mind that your current experience is not so different from how others feel when our team wins.

I'll always take an opportunity to plug Why We're Polarized by Ezra Klein, if anybody is looking for something to read.

Metalcat

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Re: Is this bigger than a "don't try and time the market" event?
« Reply #36 on: February 09, 2025, 11:01:14 AM »
How you feel now is likely very similar to how Republicans felt when Joe Biden took office. Economic sentiment these days has an extraordinarily large partisan political bias. If they had sold off because of political winds shifting, they would have missed out on a lot of growth.

Look at this chart and take a deep breath. https://images.app.goo.gl/JHqrW2k9ZhBynWyx8

Don’t be a partisan doomer. Don’t try to time the market.

The market will be fine. Stocks will probably go up because companies can make a ton of money by charging junk fees, misclassifying their employees to get out of paying overtime,  and dumping pollutants into the nearest body of water.  Can I still be a partisan doomer about non-stock things that affect my quality of life? No amount of stock going up can replace being allowed to make my own healthcare decisions or read whatever I want.

Feel free.

Maybe just try to keep in mind that your current experience is not so different from how others feel when our team wins.

I'll always take an opportunity to plug Why We're Polarized by Ezra Klein, if anybody is looking for something to read.

Great book. I'm recommending it to everyone right now.

Morning Glory

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Re: Is this bigger than a "don't try and time the market" event?
« Reply #37 on: February 09, 2025, 11:19:43 AM »
How you feel now is likely very similar to how Republicans felt when Joe Biden took office. Economic sentiment these days has an extraordinarily large partisan political bias. If they had sold off because of political winds shifting, they would have missed out on a lot of growth.

Look at this chart and take a deep breath. https://images.app.goo.gl/JHqrW2k9ZhBynWyx8

Don’t be a partisan doomer. Don’t try to time the market.

The market will be fine. Stocks will probably go up because companies can make a ton of money by charging junk fees, misclassifying their employees to get out of paying overtime,  and dumping pollutants into the nearest body of water.  Can I still be a partisan doomer about non-stock things that affect my quality of life? No amount of stock going up can replace being allowed to make my own healthcare decisions or read whatever I want.

Feel free.

Maybe just try to keep in mind that your current experience is not so different from how others feel when our team wins.

I'll always take an opportunity to plug Why We're Polarized by Ezra Klein, if anybody is looking for something to read.

It's not about my "team" winning. Please don't tell me you can "both side" the new administration's unconstitutional power grabs and scapegoating of minorities. If he'd won and then spent his time playing golf instead of making a bunch of unconstitutional executive orders, or even if he did a bunch of stuff I disagreed with but went through the proper channels, I would have been disappointed but shrugged it off.

I'll read the book though.  I recently finished "the Chaos Machine " by Max Fisher which talks about how social media algorithms drive people into conspiracy theories and extremism.

evme

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Re: Is this bigger than a "don't try and time the market" event?
« Reply #38 on: February 09, 2025, 02:32:00 PM »
Someday there will probably be a "don't try and time the market" event, but you won't know about it in advance so there won't be any actionable information to help you time it.

ChpBstrd

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Re: Is this bigger than a "don't try and time the market" event?
« Reply #39 on: February 09, 2025, 02:50:40 PM »
I'm glad I don't have to worry about such things any more.

See my discussion of the collar strategy in Investor Alley. A major run-up would be profitable for me, and a major collapse would be a buying opportunity. I've set up positions so that both statements can be true simultaneously, and a ratcheting effect locks in my gains as the market moves up over the years. I'm still exposed to the risk of a dollar decline, though.

That said, I'm not going to avoid the question like everyone else is doing.

There have to be circumstances for any individual in which it is rational to exit risky assets. Otherwise we are advocating blind faith. If you say "I would buy US stocks no matter what" isn't that like having an unfalsifiable opinion?

Even the most staunch advocate of B&H-no-matter-what is not piling all-in on Chinese stocks, or Argentine bonds, or Turkish stocks, or Russian ruble currency arbitrage, or the latest buttcoin, or orange juice futures. The no-matter-what crowd would say these markets are too risky - far riskier than B&H'ing the S&P500 has historically been. But what if something occurred that made the S&P500 more risky than it has historically been?

We can debate the particular circumstances, but first we have to establish that such circumstances exist? Does anyone here think it impossible for the U.S. stock market to become too risky?

Cannot Wait!

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Re: Is this bigger than a "don't try and time the market" event?
« Reply #40 on: February 09, 2025, 02:53:25 PM »
Good point @evme but doesn't having a moron and a lunatic running amok seem like actionable information?

Metalcat

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Re: Is this bigger than a "don't try and time the market" event?
« Reply #41 on: February 09, 2025, 03:23:21 PM »
Good point @evme but doesn't having a moron and a lunatic running amok seem like actionable information?

But how?

Having a global pandemic didn't make it terribly predictable for people to time the market.

Market timing means outsmarting the market, not just understanding it. It means knowing *before* the majority of investors what to do and when.

It's not enough to know something significant is happening. That won't allow you to come out better than everyone else because the market IS how everyone responds.

Are you confident you can outsmart how things will go and time it perfectly twice?

I certainly don't have that confidence in myself.

Cannot Wait!

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Re: Is this bigger than a "don't try and time the market" event?
« Reply #42 on: February 09, 2025, 03:46:10 PM »
This thread has been great to help me clarify what I need to do, thank you all.
I see now that I'm not actually trying to time the market,  but to realize some gains from the market. I'm past the accumulation phase - but I'd hate to see my money dissappear (obviously).
So I think it's time to take a chunk out and buy some land.

ATtiny85

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Re: Is this bigger than a "don't try and time the market" event?
« Reply #43 on: February 09, 2025, 04:12:54 PM »
This thread has been great to help me clarify what I need to do, thank you all.
I see now that I'm not actually trying to time the market,  but to realize some gains from the market. I'm past the accumulation phase - but I'd hate to see my money dissappear (obviously).
So I think it's time to take a chunk out and buy some land.

Better hurry. I assume it takes a long time to buy land outside the US.

Metalcat

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Re: Is this bigger than a "don't try and time the market" event?
« Reply #44 on: February 09, 2025, 04:37:51 PM »
This thread has been great to help me clarify what I need to do, thank you all.
I see now that I'm not actually trying to time the market,  but to realize some gains from the market. I'm past the accumulation phase - but I'd hate to see my money dissappear (obviously).
So I think it's time to take a chunk out and buy some land.

Better hurry. I assume it takes a long time to buy land outside the US.

Lol

Rob_bob

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Re: Is this bigger than a "don't try and time the market" event?
« Reply #45 on: February 09, 2025, 05:41:58 PM »
How you feel now is likely very similar to how Republicans felt when Joe Biden took office. Economic sentiment these days has an extraordinarily large partisan political bias. If they had sold off because of political winds shifting, they would have missed out on a lot of growth.

Look at this chart and take a deep breath. https://images.app.goo.gl/JHqrW2k9ZhBynWyx8

Don’t be a partisan doomer. Don’t try to time the market.

The market will be fine. Stocks will probably go up because companies can make a ton of money by charging junk fees, misclassifying their employees to get out of paying overtime,  and dumping pollutants into the nearest body of water.  Can I still be a partisan doomer about non-stock things that affect my quality of life? No amount of stock going up can replace being allowed to make my own healthcare decisions or read whatever I want.

Feel free.

Maybe just try to keep in mind that your current experience is not so different from how others feel when our team wins.

I'll always take an opportunity to plug Why We're Polarized by Ezra Klein, if anybody is looking for something to read.

It's not about my "team" winning. Please don't tell me you can "both side" the new administration's unconstitutional power grabs and scapegoating of minorities. If he'd won and then spent his time playing golf instead of making a bunch of unconstitutional executive orders, or even if he did a bunch of stuff I disagreed with but went through the proper channels, I would have been disappointed but shrugged it off.

I'll read the book though.  I recently finished "the Chaos Machine " by Max Fisher which talks about how social media algorithms drive people into conspiracy theories and extremism.

I would be interested to hear how you think your life may change for the worse during the next four years, what loss of liberty or restrictions do you see coming?

Fru-Gal

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Re: Is this bigger than a "don't try and time the market" event?
« Reply #46 on: February 09, 2025, 07:02:06 PM »
I'm glad I don't have to worry about such things any more.

See my discussion of the collar strategy in Investor Alley. A major run-up would be profitable for me, and a major collapse would be a buying opportunity. I've set up positions so that both statements can be true simultaneously, and a ratcheting effect locks in my gains as the market moves up over the years. I'm still exposed to the risk of a dollar decline, though.

That said, I'm not going to avoid the question like everyone else is doing.

There have to be circumstances for any individual in which it is rational to exit risky assets. Otherwise we are advocating blind faith. If you say "I would buy US stocks no matter what" isn't that like having an unfalsifiable opinion?

Even the most staunch advocate of B&H-no-matter-what is not piling all-in on Chinese stocks, or Argentine bonds, or Turkish stocks, or Russian ruble currency arbitrage, or the latest buttcoin, or orange juice futures. The no-matter-what crowd would say these markets are too risky - far riskier than B&H'ing the S&P500 has historically been. But what if something occurred that made the S&P500 more risky than it has historically been?

We can debate the particular circumstances, but first we have to establish that such circumstances exist? Does anyone here think it impossible for the U.S. stock market to become too risky?

Of course the US market will at some point lose its dominance, I believe. The problem is, exiting the US market and joining another one is also a “timing the market” choice. Bill Browder saw an investment opportunity in Russia, and he was right, until he was wrong.
« Last Edit: February 09, 2025, 09:46:43 PM by Fru-Gal »

seattlecyclone

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Re: Is this bigger than a "don't try and time the market" event?
« Reply #47 on: February 10, 2025, 12:40:51 AM »
I would be interested to hear how you think your life may change for the worse during the next four years, what loss of liberty or restrictions do you see coming?

Well, we're not even a month into the new administration and they've already decided to tell all the workers at entire agencies established and funded by Congress that they should just stop doing their jobs, that the work of the agency isn't work the administration believes in so it won't be done anymore. That's...different. They've issued blatantly unconstitutional executive orders, and signaled that they're planning to ignore any court orders they find sufficiently inconvenient. Increased immigration enforcement has made kids in my city afraid to go to school, and adults afraid to visit places like the food bank.

Were any of these actions targeted at me specifically? Nah. I had barely heard of USAID or the CFPB before, my own birthright citizenship isn't currently under attack, and I certainly won't miss the penny. Add it all up however and it seems like due process, checks-and-balances, and the law itself are rapidly fading into irrelevance when those things conflict with the leadership's goals. We've seen this play out in countries around the world. It ain't pretty.

Omy

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Re: Is this bigger than a "don't try and time the market" event?
« Reply #48 on: February 10, 2025, 05:25:05 AM »
Straight white men who aren't farmers or government workers should be fine for a little while.

Women no longer have body autonomy in red states (which could be EOd out for women in blue states as well.) They're also considering going after birth control and no fault divorce so we can go back to the "great" days when women were property.

Transgender people no longer have the right to use their passport if it doesn't agree with their birth certificate and have lost their rights to related medical care before age 19.

Medicaid, Medicare, SS, and ACA are in their sights as well. When that happens the poor and middle income folks will be in trouble - even the white males.

Tariffs and deporting immigrants will increase the cost of just about everything. This will affect everybody who isn't wealthy. If the economy comes crashing down from their slash and burn tactics, it will affect all of us.

So just because your life hasn't changed for the worse in the first 3 weeks, you'd have to be pretty naive to think it won't change much in the next 4 years.

Fru-Gal

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Re: Is this bigger than a "don't try and time the market" event?
« Reply #49 on: February 10, 2025, 10:34:31 AM »
Straight white men who aren't farmers or government workers should be fine for a little while.

Women no longer have body autonomy in red states (which could be EOd out for women in blue states as well.) They're also considering going after birth control and no fault divorce so we can go back to the "great" days when women were property.

Transgender people no longer have the right to use their passport if it doesn't agree with their birth certificate and have lost their rights to related medical care before age 19.

Medicaid, Medicare, SS, and ACA are in their sights as well. When that happens the poor and middle income folks will be in trouble - even the white males.

Tariffs and deporting immigrants will increase the cost of just about everything. This will affect everybody who isn't wealthy. If the economy comes crashing down from their slash and burn tactics, it will affect all of us.

So just because your life hasn't changed for the worse in the first 3 weeks, you'd have to be pretty naive to think it won't change much in the next 4 years.

It shocks me how many people don’t see the loss of bodily autonomy as a hair-on-fire emergency.

Also it super pisses me off that so many of our noble, moral overlords (the Supreme Court) LIED in their confirmation hearings when asked if they would overturn RvW. RvW should not have been the only protection, and it won’t be.