Operation Blood in the Streets

[CountryGent]

A market correction is inevitable. When? Who knows. (If I could time that I would I wouldn't be spending my days writing in languages computers understand.) That said, is anyone else gearing up for a massive correction in the market? I know I am; the 2008 crash was hell on Earth, but, wow, what a time to buy. And buy we did, with most joyful results. Simple investment strategy and plans tucked away for when it goes down:

• Your plans?
• Any stock, bond, mutual fund, ETF, or other investment plays you plan to invest in? Why?

Thanks for sharing.

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[No_Regerts]

A market correction is inevitable. When? Who knows. (If I could time that I would I wouldn't be spending my days writing in languages computers understand.) That said, is anyone else gearing up for a massive correction in the market? I know I am; the 2008 crash was hell on Earth, but, wow, what a time to buy. And buy we did, with most joyful results. Simple investment strategy and plans tucked away for when it goes down:


View attachment 618160

• Your plans?
• Any stock, bond, mutual fund, ETF, or other investment plays you plan to invest in? Why?

Thanks for sharing.

Blood in the streets....

Sounds like a sewer overflow outside of a female prison.

 

[CountryGent]

Blood in the streets....

Sounds like a sewer overflow outside of a female prison.

A most unpleasant image. Haha, but the craziness makes me laugh.

 

[JustSomeGuy]

No help here. I don't invest in paper with fancy printing. I do invest in things. Maybe my vision of the future is darker than most others vision. My grandfather and father, who were both wiser men than I, always told me to "hope for the best, but prepare for the worst". That being the case, the things I invest in are things that further our aims of full self sufficiency in a full on WROL/collapse scenario where fiat currencies and "negotiable instruments" are just pretty pieces of tinder. Thankfully, through a fair bit of luck and most of a lifetime of hard work, I'm at a place where I'm highly confident that if it all came tumbling down tomorrow we and our likeminded neighbors would be good to go.

 

[Alexx1401]

Do I believe that this all could well come crashing down? Hell yes. As for what do I do to prepare? One thing I do not do is depend on what I have in the bank, stocks, bonds, anything like that, even cash. As if all fails all of this will be worthless.

 

[zenbreath]

I believe that OP is talking about a 1/2 fall like 2008, not a Full fall like 1928.

The best thing to have in a 1/2 fall is lots of liquidity(cash in the bank), unfortunately, you will be profiting from someone else's misfortune.

Example. A guy owns pays on his mortgage 20 years and has 10 years to go. He is laid off, and his house is foreclosed. You can purchase his house for 1/3 its value, because he already paid 2/3.....and got nothing.

There will be opportunities out there, you have to decide what your conscience will let you do.

 

[Flymph]

I think I'm going to pull out while the pulling out is good... then reinvest the same amount later when the price is right.
Although I could just pull out what I out in and see what happens, probably better for the market overall anyway.

 

[Certaindeaf]

 

[The Heretic]

I just keep putting the max into my 401K and Roth IRA and paying down my mortgage.

Yes, at some point the market will go down, but it also goes back up. As you say, when it goes down that is a good time to be buying. But right now I am about 1 year away from retiring and if a recession hits I don't know if I will still have my job, so I am putting pre tax money in the market while I can.

It averages out, and I don't plan to touch those funds after I retire (I might use the Roth to buy land/etc.) - they will stay there until I am 70.5, then they will get reinvested the best I can - eventually going to my daughter who might not be able to work to full retirement age. Either way, there will be something there for her, and by then the market should have come back and grown quite a bit.

This year, my two IRAs (regular and Roth) grew by $40+K with no input from me (I put nothing in them - yet), so in ten years they should double, even if there is a short term correction. That should be enough for my daughter and maybe a little left over for me.

Next year I reach full retirement age, but I will maybe work some months to a year more if I still have a job. When I reach that age, I am thinking I will go ahead and take SSI benefits even though I am working and I will have to pay taxes on them. I will put that money aside for buying property.

But if tomorrow there is a recession, then in 6-12 months I might get laid off - not sure yet. My 'employer' (I am a contract employee) would probably want me around for that long to finish the project I am working on. OTOH, they know I will retire in a year or two, so they are working on transferring knowledge/experience to other devs, and by then I won't be as crucial to the projects as I am now, and the projects will be thru their first release cycle. So the timing should work out. We'll see.

The main thing that would be a problem for me is that in a year or so I will want to sell my property. In a recession the value will go down and there won't be as many buyers, so I may have to wait another year.

OTOH - things might pickup, especially if this trade war is resolved, and often predictions of recessions/bubbles/etc. take longer to come to a head than people predict. It was that way with 2008 - for years people were predicting the housing bubble was going to burst - it took longer than anybody predicted; it was always "in 6 months to a year", until it did. So who knows?

Corps and orgs are preparing for a downturn though, and it is prudent to pay off debt as much as possible and set aside savings - but I am not going to change my 401K or IRAs.

 

[nehalemguy]

This is contrarian investing at its heart--the strongly held belief that the worse things seem in the market, the better the opportunities are for profit. Warren Buffet has made billions by following this line of thought.

I personally love days where the market is in full panic mode. It creates buying opportunities and if I can add shares to a position that I already own at a discount price.....and lower my average cost by doing so....you bet I pull that trigger.

Another thing that often gets overlooked with stocks......dividends. My personal stock portfolio (separate from my 401K) only has 12 core stocks. 10 of those pay quarterly cash dividends that pay out annually between 2.56% to 9.23%.

E

 

[308]

My personal stock portfolio (separate from my 401K) only has 12 core stocks. 10 of those pay quarterly cash dividends that pay out annually between 2.56% to 9.23%.

E

Did you select those on your own? I have cash needing a good home.

 

[nehalemguy]

Did you select those on your own? I have cash needing a good home.

Yes and no. I have a close friend who is actually in the business for real. He gave me the general outline for what I wanted....income and growth......and pointed me in that direction. I picked from there.

He also showed me a online brokerage that trades commission free......Robinhood.com.

E

 

[ma96782]

Keep your powder dry.

Or,

Keep some dry powder.

In other words...…. have some cash ready to go.

But, that advice also seems to work, when dealing with gun grabbers.

Aloha, Mark

 

[nammac]

Stay liquid, invest in precious and needed metals. Ya know, brass, copper, lead, silver, gold...

But most of all, become self sufficient and self reliant. The more you can do to be your own purveyor of goods, the better off you'll be. Just this schmicks opinion....

 

[Kruel J]

Blood in the streets....

Sounds like a sewer overflow outside of a female prison.

Ah...a female prison. I give myself a 50/50 chance.

 

[No_Regerts]

Ah...a female prison. I give myself a 50/50 chance.

Don't sell yourself short! They don't serve whole bananas there for a reason!

 

[Resist_This]

I'm a little over 10% cash right now just waiting for a big dip. I usually have a zero allocation for cash.

 

[nammac]

Don't sell yourself short! They don't serve whole bananas there for a reason!

 

[Resist_This]

I think I'm going to pull out while the pulling out is good... then reinvest the same amount later when the price is right.
Although I could just pull out what I out in and see what happens, probably better for the market overall anyway.

I've thought about doing this too or maybe selling half and leaving half in

 

[WoodsPlinker]

I tend to like to hedge my bets. I have half of my mutual funds in US and half in foreign... If they both crash I have precious metals, guns and ammo.

But I haven't invested in a while, getting out of debt seemed more important.