My first bear market and I'm sleeping tight
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- europeanwizard
- Executive Member
- Posts: 171
- Joined: Sun Jun 04, 2017 4:06 am
- Location: The Netherlands, Europe
My first bear market and I'm sleeping tight
Hi folks,
When I started freelancing about five years ago, I knew I had to step up saving and investing. First for the inevitable drought in work, and second because I'd no longer have a employer-provided pension.
A lot of blogs were touting Buy & Hold 100% stocks portfolios. But from what I read about investing, the big problem with Buy & Hold was the human factor. I read some more and saw people mentioning anxious partners, ulcers and sleepless nights during the '08-'09 crisis. When I found out about the PP, I figured this might be worth a shot.
I started with an EU PP, and later moved the stock portion to 25% global stocks, then added a VP with some bitcoin and P2P lending. Last week, I calculated my losses YTD, and it was around 9%, and I just shrugged my shoulders.
Now to be clear, I am definitely worried about whether my current client will retain my services. It's a heads-or-tails situation whether they will. But in the meantime, due to the huge cash portion in the PP and the relatively limited losses, I slept like a baby.
Thanks everyone, and stay healthy!
When I started freelancing about five years ago, I knew I had to step up saving and investing. First for the inevitable drought in work, and second because I'd no longer have a employer-provided pension.
A lot of blogs were touting Buy & Hold 100% stocks portfolios. But from what I read about investing, the big problem with Buy & Hold was the human factor. I read some more and saw people mentioning anxious partners, ulcers and sleepless nights during the '08-'09 crisis. When I found out about the PP, I figured this might be worth a shot.
I started with an EU PP, and later moved the stock portion to 25% global stocks, then added a VP with some bitcoin and P2P lending. Last week, I calculated my losses YTD, and it was around 9%, and I just shrugged my shoulders.
Now to be clear, I am definitely worried about whether my current client will retain my services. It's a heads-or-tails situation whether they will. But in the meantime, due to the huge cash portion in the PP and the relatively limited losses, I slept like a baby.
Thanks everyone, and stay healthy!
Re: My first bear market and I'm sleeping tight
Happy it's working out for you so far
You are in a much better position than many others - good choice on the PP
https://www.abc.net.au/news/2020-03-24/ ... s/12080612
You are in a much better position than many others - good choice on the PP
https://www.abc.net.au/news/2020-03-24/ ... s/12080612
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Re: My first bear market and I'm sleeping tight
The cash position in the PP is genius. Takes a black swan event like this to truly understand why.europeanwizard wrote: ↑Tue Mar 24, 2020 1:40 am
Now to be clear, I am definitely worried about whether my current client will retain my services. It's a heads-or-tails situation whether they will. But in the meantime, due to the huge cash portion in the PP and the relatively limited losses, I slept like a baby.
- dualstow
- Executive Member
- Posts: 14298
- Joined: Wed Oct 27, 2010 10:18 am
- Location: synagogue of Satan
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Re: My first bear market and I'm sleeping tight
Glad to hear it, Wizard.
2008-9 events made me really pay attention to CraigR's posts at bogleheads and then, the Crawling Road blog* (anagram of his name) and eventually this forum. I went from mostly stocks to the PP**. I spent the next ten years wondering if I shouldn't have gone all stocks instead. Of course I wondered that: it's been a bull market the whole time!
2020: starting to wonder if I should go all stocks again....nah. The pp has been good to me. It's time for me to be good to the pp, to stick with it.
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
*Now defunct
**And, admittedly, a stock-heavy VP
2008-9 events made me really pay attention to CraigR's posts at bogleheads and then, the Crawling Road blog* (anagram of his name) and eventually this forum. I went from mostly stocks to the PP**. I spent the next ten years wondering if I shouldn't have gone all stocks instead. Of course I wondered that: it's been a bull market the whole time!
2020: starting to wonder if I should go all stocks again....nah. The pp has been good to me. It's time for me to be good to the pp, to stick with it.
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
*Now defunct
**And, admittedly, a stock-heavy VP
- I Shrugged
- Executive Member
- Posts: 2064
- Joined: Tue Dec 18, 2012 6:35 pm
Re: My first bear market and I'm sleeping tight
I agree, wizard.
Re: My first bear market and I'm sleeping tight
Indeed, the cash position adds stability to the PP beyond just the fact that it reduces volatility.
It also gives the investor a large source of liquidity to draw down from before needing to touch the volatile assets in the strategy. This prevents one from having to potentially "lock in" losses during a big downturn. General tax management is also improved.
Sleeping like a baby, just as the OP is, thanks to the PP.
It also gives the investor a large source of liquidity to draw down from before needing to touch the volatile assets in the strategy. This prevents one from having to potentially "lock in" losses during a big downturn. General tax management is also improved.
Sleeping like a baby, just as the OP is, thanks to the PP.
MM
Ruby on Rails rules all
www.allterraininvesting.com
Ruby on Rails rules all
www.allterraininvesting.com
Re: My first bear market and I'm sleeping tight
Uh-oh, saying that is one of mathjak's triggers!Smith1776 wrote: ↑Tue Mar 24, 2020 5:57 pm Indeed, the cash position adds stability to the PP beyond just the fact that it reduces volatility.
It also gives the investor a large source of liquidity to draw down from before needing to touch the volatile assets in the strategy. This prevents one from having to potentially "lock in" losses during a big downturn. General tax management is also improved.
Sleeping like a baby, just as the OP is, thanks to the PP.
- dualstow
- Executive Member
- Posts: 14298
- Joined: Wed Oct 27, 2010 10:18 am
- Location: synagogue of Satan
- Contact:
Re: My first bear market and I'm sleeping tight
It’s like saying “Beetlejuice” 3x
Re: My first bear market and I'm sleeping tight
lol which part is the trigger? Or is it the whole thing?
MM
Ruby on Rails rules all
www.allterraininvesting.com
Ruby on Rails rules all
www.allterraininvesting.com