Tyler wrote:
I feel sorry for people who got hammered by stop losses this morning. Trying to get in and out of a volatile market, even semi-passively, just doesn't always work out the way you planned.
Yeah, I witnessed this happen today. A guy I share an office with owns an ungodly amount of company stock. His stop loss triggers early this morning, selling 3000 shares. Then, after agonizing about it for awhile, he decides to buy it all back, but could only buy 2500 since the price had gone up.
I just kept to myself while all this was going on, but it was a bit painful. On the one hand, I wanted to say something, offer some advice, but on the other hand I felt like it might have been out of place.
buddtholomew wrote:
Is anyone disputing the fact that a US-centric equity allocation outperformed (past tense) the PP over an arbitrary period of time?
Over any arbitrary period of time? Of course I would disagree with that, only because it's clearly not true. I would not actually dispute such a claim, because it's so obviously and easily verifiably not true that it's not worth my time to actively dispute it.
whatever dude. Get a life.
"The first principle is that you must not fool yourself and you are the easiest person to fool" --Feynman.
Tyler wrote:
I feel sorry for people who got hammered by stop losses this morning. Trying to get in and out of a volatile market, even semi-passively, just doesn't always work out the way you planned.
Why do you feel sorry for them? I don't have any stop losses, because I'm not going to sell any of my holdings until I'm good and ready to sell.
Libertarian666 wrote:I don't have any stop losses, because I'm not going to sell any of my holdings until I'm good and ready to sell.
This is definitely the correct answer. Stop losses promote bad portfolio management. I wrote about it a while ago why they're not the great idea that they seem to be:
Tyler wrote:
I feel sorry for people who got hammered by stop losses this morning. Trying to get in and out of a volatile market, even semi-passively, just doesn't always work out the way you planned.
Yeah, I witnessed this happen today. A guy I share an office with owns an ungodly amount of company stock. His stop loss triggers early this morning, selling 3000 shares. Then, after agonizing about it for awhile, he decides to buy it all back, but could only buy 2500 since the price had gone up.
I just kept to myself while all this was going on, but it was a bit painful. On the one hand, I wanted to say something, offer some advice, but on the other hand I felt like it might have been out of place.
I figured out awhile ago that it is never a good idea to offer advice on such matters. If the person loses money following your advice, they will blame you, but if they make money they probably won't thank you.
I sometimes still slip up on this. Maybe there is a 12-step program for it?
For anyone looking to try to outguess this violent correction please be aware that this might just be a false bottom and there could be more pain to come.
Reub wrote:
For anyone looking to try to outguess this violent correction please be aware that this might just be a false bottom and there could be more pain to come.
So to summarize, violent bottom pain?
Monstres and tokeninges gert he be-kend, / And wondirs in the air send.
And this is where I get disgusted with gold yet again. Dollar down what, like 1.5% yesterday with no rise (even a small loss) in gold. However, today, dollar up and gold getting hammered.
I guess I still expect to see it below 1000 before any meaningful rise. Seems appropriate that a dip like that would be some sort of final flush out.
about the best that can be said for gold the last few years is " it ain't stock "
it has no idea what it is supposed to respond to and something else beats it to the punch . it hasn't been good keeping up with inflation , it hasn't been good at following the dollar . the best we can say about it is it isn't stock and gives you a place to put money that does not follow every move stocks make
buddtholomew wrote:
Is anyone disputing the fact that a US-centric equity allocation outperformed (past tense) the PP over an arbitrary period of time?
Over any arbitrary period of time? Of course I would disagree with that, only because it's clearly not true. I would not actually dispute such a claim, because it's so obviously and easily verifiably not true that it's not worth my time to actively dispute it.
whatever dude. Get a life.
No, you get a life!
Just kidding, of course!
I will do my best to do a life.
Just do remember there are definitely times that a PP has or would have outperformed stocks, sometimes for very extended periods of time.
buddtholomew wrote:
Nothing to see here, everything's great!
Oh yeah, 3rd day of losses in a row. Only down 70K now.
When will you guys come to your senses?
When will YOU come to your senses? It is utterly perplexing to me that you invest in a portfolio you hate and believe is broken, but refuse to exit. Face it: the PP is not for you. You prefer stocks for your long-term and can't tolerate even the smallest shred of volatility for your short-term money. You tried the PP and found it didn't suit you. No shame in admitting that.
Human behavior is economic behavior. The particulars may vary, but competition for limited resources remains a constant.
- CEO Nwabudike Morgan
buddtholomew wrote:
Nothing to see here, everything's great!
Oh yeah, 3rd day of losses in a row. Only down 70K now.
When will you guys come to your senses?
Of course I wouldn't expect you to divulge details but if you started with $1 million, that's a measly 7% drawdown, well within the range of what'd be expected from even a 100% bond portfolio. I thought you were a wealthy guy. Given the negativity I'd have expected you to be down a LOT more than $70k.
buddtholomew wrote:
Nothing to see here, everything's great!
Oh yeah, 3rd day of losses in a row. Only down 70K now.
When will you guys come to your senses?
Of course I wouldn't expect you to divulge details but if you started with $1 million, that's a measly 7% drawdown, well within the range of what'd be expected from even a 100% bond portfolio. I thought you were a wealthy guy. Given the negativity I'd have expected you to be down a LOT more than $70k.
Typo, 7K and I'm speaking about today only.
Last edited by buddtholomew on Wed Aug 26, 2015 10:41 am, edited 1 time in total.
"The first principle is that you must not fool yourself and you are the easiest person to fool" --Feynman.
buddtholomew wrote:
Nothing to see here, everything's great!
Oh yeah, 3rd day of losses in a row. Only down 70K now.
When will you guys come to your senses?
When will YOU come to your senses? It is utterly perplexing to me that you invest in a portfolio you hate and believe is broken, but refuse to exit. Face it: the PP is not for you. You prefer stocks for your long-term and can't tolerate even the smallest shred of volatility for your short-term money. You tried the PP and found it didn't suit you. No shame in admitting that.
I might just exit the PP the next time it's beating the market. If stocks are beat down it might be a good time to switch back to a classic bogleheads. But today is not that day
Ps I would also like to get a life please send me your newsletter
Send that man a blindfold!
