OFFICIAL STOCK MARKET AND ECONOMY THREAD VOL. A NEW CHAPTER

Just some advice to anyone reading who hasn't been around during a serious bear market... If you are invested in something solid and diversified like the S&P 500 index fund through your 401k or taxable accounts, and you are investing for the long term...do NOT panic. Nobody knows how low this will go or for how long, but if you hold, and more importantly, keep buying regularly, you will be very well off. Bull markets make you money, bear markets make you rich (if you don't panic). Don't worry about trying to time the market and ignore the doom and gloom you will hear on TV.

If you read my posts on here for the past few months I've been leaning bearish and raising cash, but the only reason I did that is to buy more on the way down.
 
tkthafm said:
Just some advice to anyone reading who hasn't been around during a serious bear market... If you are invested in something solid and diversified like the S&P 500 index fund through your 401k or taxable accounts, and you are investing for the long term...do NOT panic. Nobody knows how low this will go or for how long, but if you hold, and more importantly, keep buying regularly, you will be very well off. Bull markets make you money, bear markets make you rich (if you don't panic). Don't worry about trying to time the market and ignore the doom and gloom you will hear on TV.

If you read my posts on here for the past few months I've been leaning bearish and raising cash, but the only reason I did that is to buy more on the way down.
Click to expand...

One of my bigger regrets was not pouring a good amount into the market during the 2007-2008 days. I remember when Apple was like $92 (before the 7:1 split), GE was $5, Ford was $1.78, etc. I wanted to buy a bunch of Ford, but was talked out of it because.... "what if they go bankrupt". Should've just thrown a bunch into an index fund.
 
Index funds are key during recessions and bear markets. Lowest fees, no commissions in some cases, no risk of losing it all through a company's bankruptcy, and potentially tax free through a Roth IRA? Hoard cash if you can, patience pays off.
 
noskey said:
Index funds are key during recessions and bear markets. Lowest fees, no commissions in some cases, no risk of losing it all through a company's bankruptcy, and potentially tax free through a Roth IRA? Hoard cash if you can, patience pays off.
Click to expand...

That can get you into trouble though... cause at what time do you stop hoarding cash and start buying again? I think the key is to make sure you're continuously buying the whole way down, cause none of know will ever time this market perfectly.
 
Buying the whole way down will have you at full investment before the correction is halfway over. Case in point with crypto. Many of us started buying on the way down in January. By March we were out of cash and the market continued to dump. The key is start in small and wait for a trend to develop before you start sizing in. I would only use max 30% of my cash until a trend develops.
 
For my long term holdings I buy same amount every single week no matter what. Auto-invest is set up, money goes straight from my bank, don't even think about it. Will do this until I retire.

My goal is to hold forever, live off dividends, pass on whole account to my kids. Compounding interest is a beautiful thing.
 
Chopper said:
That can get you into trouble though... cause at what time do you stop hoarding cash and start buying again? I think the key is to make sure you're continuously buying the whole way down, cause none of know will ever time this market perfectly.
Click to expand...
Agreed on purchasing continually, but in small purchases like JRS said. Buying during a bear market at any point usually results in outsized gains once the market reverses and economy recovers though. Just need to hope you bought at the most opportune times, because like you said, you cant time the market.

Small purchases in index funds will be my main plan. Might add some stock positions if it's a bloodbath, but we'll see if I have enough cash to go around by that time.
 
tkthafm said:
For my long term holdings I buy same amount every single week no matter what. Auto-invest is set up, money goes straight from my bank, don't even think about it. Will do this until I retire.

My goal is to hold forever, live off dividends, pass on whole account to my kids. Compounding interest is a beautiful thing.
Click to expand...

I like this play, what are you buying though?
 
If you want an S&P500 play, check out IVV. That’s what I go with for a broad market index fund. Relatively low costs.

I can’t help but want to add to some FAANG positions at these discounts. If we’re talking long term, Google and Apple are easy money.
 
tkthafm said:
Simple cheap index fund that covers the whole market,I go with VTSAX from Vanguard.

"Don't look for the needle in the haystack, buy the whole haystack" - Jack Bogle
Click to expand...

This is great advice in my opinion. Simple and effective.
 
Im looking into REITs to buy puts on. A lot of signs pointing towards a slowing real estate market.
 
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