Market Philosophy: What You Got?

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nepa nepa
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Re: Market Philosophy: What You Got?

riverc0il wrote
I'm a strong believer that I'd rather not maximize my return and leave some potential on the table rather than trying to play pro investor and make a bad decision and cost me way more money than I might have saved.
Yup.  I couldn't agree more.  I've learned this lesson the hard way.  I now focus more on absolute as opposed to relative returns.  
MC2 5678F589 MC2 5678F589
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Re: Market Philosophy: What You Got?

In reply to this post by Harvey
What the market is doing shouldn't really matter much at all. The most important components to a retirement are time and savings rate. Markets up, Markets down, it doesn't really matter in the long haul as long as you keep your money in. For example, this article provides an example of the hypothetical worst market timer in history, who decided to be 100% in stocks, which he just happened to buy on the worst days in market history. Because he left his money in there and didn't sell after the markets crashed, he still ended up a millionaire:

http://awealthofcommonsense.com/worlds-worst-market-timer/

Time was key for him. But if you don't have time, then savings rate is the most important component:

http://www.mrmoneymustache.com/2011/04/26/why-hardcore-saving-is-much-more-powerful-than-masterful-investing/

Pick one, pick the other, pick both. Just never sell, and you'll be fine in the long haul.
Harvey Harvey
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Re: Market Philosophy: What You Got?

Markets down (2001, 2008) is what has really helped me.  I was fortunate enough to be able save 25% of my income through all of 2001 and about 15% through 2008. My two co-workers who choked (ie moved to safety) in 2008 are still down by a lot.

I can't pretend to beat the average. Save a lot, keep costs rock bottom, never sell.  It's working ok for me.
"If it's my mountain, I'm installing a fixed grip and telling the lifties to stuff the beginners into chairs as aggressively as they have to, to keep it going full speed." —Brownski
Z Z
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Re: Market Philosophy: What You Got?

If you just doing mutual funds it's buy and hold forever with maybe a rebalancing once or twice a year.

If you are going to individual stocks then you need to pay way more attention as to when to take profits of limit a loss on a stock.
"It is better to go skiing and think of God, than go to church and think of sport."
Artic Explorer Fridtjof Nansen
nepa nepa
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Re: Market Philosophy: What You Got?

Slow day at work... Bernie is from NY... so that makes this a relevant post.

How do you think his policy changes would affect the market?

campgottagopee campgottagopee
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Re: Market Philosophy: What You Got?

I can't answer your question regarding the market, but I certainly like what Bernie stands for. He's not wishy-washy about it either, and has been sending the same message for a long time. I hope he makes it. Bernie will have my vote fer sure.
nepa nepa
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Re: Market Philosophy: What You Got?

campgottagopee wrote
I can't answer your question regarding the market, but I certainly like what Bernie stands for. He's not wishy-washy about it either, and has been sending the same message for a long time. I hope he makes it. Bernie will have my vote fer sure.
To be honest, some of his potential tax policies will increase my personal obligation to the IRS, but I don't care.  I like what he is saying also.  
PeeTex PeeTex
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Re: Market Philosophy: What You Got?

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I agree with about 80% of what he says. However he is not the guy to get the job done. You need someone from the right side of the aisle to effectively change things. The right will fight him tooth and nail and nothing will get done. We need a progressive republican and dare I say it - the Donald is the closest thing we got.
nepa nepa
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Re: Market Philosophy: What You Got?

PeeTex wrote
You need someone from the right side of the aisle to effectively change things.
I think I understand why you are saying in terms of the political landscape.  Are you saying this because of the current partisan composition of Congress? meaning a guy on the left side will get destroyed by the right due to the current numbers.

Would you say the same thing if Congress was dominated by the left?  
PeeTex PeeTex
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Re: Market Philosophy: What You Got?

nepa wrote
PeeTex wrote
You need someone from the right side of the aisle to effectively change things.
I think I understand why you are saying in terms of the political landscape.  Are you saying this because of the current partisan composition of Congress? meaning a guy on the left side will get destroyed by the right due to the current numbers.

Would you say the same thing if Congress was dominated by the left?
Sort of. Historically, when a major shift has occurred it has been led by politicians that were originally aligned with the issue that was affected. Example, LBJ was the leader of the senate and major blocker of social reforms before he brought on civil rights as president, Eisenhower dismantled the military industrial complex, TRex led the progressive movement, Nixon shut down Vietnam and opened up China. Bernie's ideas might be just fine, but he needs the support of conservatives to get anything done and they will fight him tooth and nail just because he is on the left, study Wilson and the League of Nations - The republicans would have rather seen the world go up in flames rather than admit he was right. What we need is a progressive republican and that will be hard to find.
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