Don't Look Retirement Balance Now!

[tripods68]

If you are, you will be dissapointed. I peeped my retirement balance today (ie 457,403(b),ROTH, IRA) down overall by 10% since July 1st. We made changes and reallocation; heavy towards safer investment (ie US bonds believe or not and cash), but remained positive on long term investment. No changes on future contributions towards equity.

[creditcardfree]

I don't plan to look until I hear it is heading back up.

[jpg7n16]

Dow closes up 4% after Fed news - Arizona News from USA Today

Guess you made nearly half that back in one day... plus dividends and interest you've earned in the meantime.

[KTP]

Originally Posted by jpg7n16

Dow closes up 4% after Fed news - Arizona News from USA Today

Guess you made nearly half that back in one day... plus dividends and interest you've earned in the meantime.

Except it doesn't work that way.

10% down on a $100 investment leaves you with $90.

a 4% increase on the $90 investment leaves you with $93.60.

You actually need a 5.5% increase to get you back to only 5% down from your original amount.

Anyway, it is probably going to be a few more days of 500 point drops and 500 point moves up. Maybe. Everything is so screwy right now. I tried to buy Exxon today right after the Fed announcement when it crashed to 67 and before I could even get the limit order in it had jumped up $4. Computerized trading....sigh.

[jpg7n16]

Hence the word 'nearly'

[KTP]

Yeah ok

I just hate when people think that everything is roses when a stock gains 75% after falling 60%. Even after the 75% gain you are still down 30% on your original investment.

In this case the drops and gains were small enough that "nearly" is good enough when saying a 4% gain offsets a 10% drop.

[tripods68]

Originally Posted by KTP

I just hate when people think that everything is roses when a stock gains 75% after falling 60%. Even after the 75% gain you are still down 30% on your original investment.

I agree. We have a long way before the market pick up again due to high unemployment. I wouldn't be shocked if DOW goes below 10,000 For now I can sleep at night knowing i have minimized my losses for now.

[jpg7n16]

Originally Posted by KTP

Yeah ok

I just hate when people think that everything is roses when a stock gains 75% after falling 60%. Even after the 75% gain you are still down 30% on your original investment.

I agree.

I think I don't think much about it, because most people continue to invest over that timeframe, which lets them buy a lot more during the down period, and make more back. People forget reinvestments, and new investments in the down times.

In this case the drops and gains were small enough that "nearly" is good enough when saying a 4% gain offsets a 10% drop.

I guess the reason I posted that is that it bugs me that people freak out, yell and scream over a 10% drop in a week. But then completely ignore a 4-5% gain on one day.

10% isn't too big of a deal, esp when the market can rise or fall 4-5%/day. Granted this market is crazy volatile right now, and 1-2%/day is much more normal.


But I do agree that with the actual mathematics 3.6% doesn't seem as close to 5% as 4% does. So maybe I should have said, 'gained back over 1/3 of your loss in one day'

Either way, don't ignore the good days.

(note on my attitude in this post: I'm not trying to argue with you KTP I agree with everything you said)

[danieldroga]

That is just a normal thing, everybody is also experiencing it.

[97guns]

im not experienceing it, im retired with no worries, the market can tank to 6000 today for all i care. im ready for riots in the streets - bring it on.