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Re: Market Rout

By: micro in POPE 5 | Recommend this post (0)
Tue, 25 Feb 20 2:37 AM | 41 view(s)
Boardmark this board | Pope 5 		Msg. 53209 of 62138
(This msg. is a reply to 53207 by Zimbler0)
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Hi Zim.

Well, it's just a place to hedge or hide yer money while the stockm arket is busy taking a dump on everuything and everyone.

better to make a few percentage points tan to lose a huge percentage of your valuations. That is why I look at these things. As soon as the bottom has been reached I can then revert back to buying low on the stock market side again and taking a nice steady ride...

It's all about NOT LOSING what you accumulated and have to start rebuilding it all over again...

That is the strategy I have emplyed for the past 20 years. Don't go backwards. Don't buy back real estate you already paid for.

When people stop losing their gains or highs on their investments and continuoisly move upward, never retreating and having to retake lost ground, they get much higher much faster in valuation..

One of the few things my planner and I worked on some time ago. Now I rest comfortably knowing that the least growth I will have in accumulation in a year is 8% . The highest is whatever my stock folder can generate in a decent market..

But, when I only held stocks, I would employ this strategy selling the stocks near the height and then invest in bonds and other instruments that would grow even in single digits. That is better than LOSING and going backwards in price dclines of the shares of stock..

Then I have to wait long time for those to eventually, if ever, regain all the ground they lost during the selloff... So I feel like a yo-yo. I got tired of that and decided ona path of always steadily going upward and never declining... It works much better....


But, that is why I used to always switchover to bonds before... They would not be losing money while the markets were tanking...

To each their own...

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The above is a reply to the following message:
Re: Market Rout
By: Zimbler0 in POPE 5
Tue, 25 Feb 20 2:17 AM 		Msg. 53207 of 62138

Micro > Likely look at Bond markets strongly although my managed accounts already do that automatically.


Bonds.
Interest rates go down, bond prices go up. Years of low
inteest rates . . . and bond prices are about as high as
they can get. (I think.)

(Note : If (or when) interest rates go up, bond fund share
prices - and the values of individual bonds - will go down.)

Worse, the dividend yields on bond funds are near, or below
three percent. Making me wonder if keeping money in my bond
funds is worth it.

Funny thing. Used to be corporate bonds paid better than
municipals . . . as the tax free aspect of municipals made
them (allegedly) more attractive. I have shares in three bond
funds. And the muni's are paying out better than the corporate.
At least according to my printout from Morningstar.

DWS Managed Municipal Bonds - yield 2.9%.. . . . . SCMBX
Vanguard High Yield tax exempt - 3.3% . . . . . VWAHX
And Vanguard Total Bond Market - 2.7% . . . . . VBTLX (In my 401K.

Zim.

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