Look Out Below! Stocks tank!

[planosteve]

Dow down 331 1.86%
Crude drops below $50
Gold shines +1.66%

[Red Oak]

Santa Claus got mugged !

[GFB]

Market down less than 2%..whoop dee do.

That's what you call.."noise."

I am hoping for another 10% or more correction, though..would like to buy in some more.

..but not at this level..still too close to the all time highs.

[Red Oak]

Are you timing the market ?

Otherwise why would you want a 10% drop ?

[GFB]

Are you timing the market ?

Otherwise why would you want a 10% drop ?

Say WHAT?

You want me to wait until we're UP 10% ?

If you mean..do I wait until buying conditions are more favorable to add?..yes..who wouldn't?


If you mean have I jumped out and intend to jump back in?..no..like I've said before..I am in the market for keeps.

[GFB]

My financial situation is not stagnant..still work for a living.

[Red Oak]

Unless you are waiting to buy back in, a 10% drop costs you much more than anything you will gain by dollar cost averaging during the drop; assuming you have a significant amount invested.

[GFB]

Unless you are waiting to buy back in, a 10% drop costs you much more than anything you will gain by dollar cost averaging during the drop; assuming you have a significant amount invested.

No, because a 10% "correction"..by definition..is a temporary event..and costs me nothing.

Besides that..I would certainly prefer the market go up forever..but IT DOESN'T work that way..therefore, a correction can be a great opportunity..and should be taken advantage of if possible.

[Red Oak]

[planosteve]

Define "temporary".

[GFB]

:lol:

Ok..you give your opinion on the subject. I know you can do more than chuckle.

[GFB]

Define "temporary".

You and Red Oak should learn some terms.

Here are a few..

"pullback".. Tends to be a few percentage points..3, 5 or 8.

"correction"..generally 10 to 15%

What those two have in common is they are both health restoring events..especially the correction ..when they take place within a bull market.

..and they both tend to last weeks or months.

If you believe or fear the market is going to go down and stay down for a period of 1, 2 or 3 years or more..
you believe we are going to enter a bear market.

Bear markets generally occur, and are triggered when the stock market drops 20% or more.

This stuff is historical..and amazingly consistent..you can look it up!

[GFB]

Define "temporary".

Maybe this will help.

If it's not temporary..it's not a correction.

[Red Oak]

If the market drops 10% and you don't lose anything because you don't sell, then the same would hold true if the market goes up 10% you don't gain anything if you don't sell !

And if you are a buy and holder with a significant position in equities you do not benefit from a 10% decline in equities.

[GFB]

And if you are a buy and holder with a significant position in equities you do not benefit from a 10% decline in equities.

That is correct.

My example involved buying in more.

[GFB]

If the market drops 10% and you don't lose anything because you don't sell, then the same would hold true if the market goes up 10% you don't gain anything if you don't sell !

If you read about investing for the long term, you learn why this type of thinking is not particularly useful.

[Red Oak]

What does Brinker call his investment letter ??

[GFB]

What does Brinker call his investment letter ??

It's called the Marketimer.

Always thought that was a curious name..attempting to time the market is something he doesn't ordinarily do.

But if you've noticed, although I continually recommend some books that are great to read on investing..I don't tell people.."listen to Brinker'."

For most people he will make your eyes glaze over..I just love discussions on investing..even when I disagree.

[Red Oak]

Brinker is a market timer.

Brinker gives very generic advice, generally sound.

His publication is fair to middlin.

[GFB]

Brinker is a market timer.

Brinker gives very generic advice, generally sound.

His publication is fair to middlin.

Ok, but this thread was not about Brinker..why did you even bring him up?