It's amazing how so many folks are invested heavily in equities. I can't get myself to put majority of it in equity and end up holding a lot in my savings account. 1. Has anyone lived through recession period and what has been your experience in terms of exposure to equities and how badly was your portfolio hit? 2. For folks invested heavily in equities, are you not afraid of the impending recession? Thanks!
Lived through 2. I Never sell and always increase contribution during the worst of the markets. You’ll make millions. Index funds are key to this strategy. Good luck.
I have VPU, VAW, VTI, VXUS from vanguard for Roth. VIIIX, BTC Russell 2500, EuroPacific growth (RERGX) for 401K. SCHB, VTI, SCHF, IEMG for savings. Thoughts? Just starting out. All this totals roughly ~10K
During recession the stock market might go down 20-30%, so u might loose whatever you earned during the last 2-3 years. So what? Eventually, stocks will bounce back, just hold tight and don’t panic. Nothing last forever.
Right, the average time for recession back to normal is 13 months
I buy high and sell low
Agreeing with above. Only people that truly need to worry are those currently retired and living off those funds. Otherwise, just shove all you can in and during recession, shove in even more to take advantage of the lower prices. It will rebound and you’ll come out on the other side wealthier.
How will you shove in more if you are fully invested already? 🤔
Agreed. I have a decent savings rate right now but don't budget or scrimp too much. I'll've more motivation to budget and up the savings rate if there's a recession and equities are cheap. I might also decide to put some of my down payment fund in equities if there's a ~30% drawdown.
Cant you just put arbitrary numbers in and simulate how it feels? Wtf is this question about? If you are scared, put your money in pillow and sleep on it. You will be a loser in a long run.
Dude chill. Am just asking for opinion. Everybody's risk appetite/tolerance is different
So if you planning to buy a home would you just hold it in savings account? Market is unpredictable so am not sure if I can withdraw the money when I want to pull the trigger on buying real estate
There are multiple failrly safe ways. High yield saving accounts, money market funds and CDs would be a good start to at least make sure your money don't depreciate due to inflation.
Yea, I have it in high yield savings account. But 1.75% roi is nothing compared market performance this year :)
Invested 50K back in 2009 when the DJI cratered to 6000. I’ve also been continuously investing (dollar cost averaging) in the market since 2000
Nice!! Likewise except I started in 2002. What’s your lt roi? I’ve been in the 12% range.
As long as your time horizon is long recessions are great and when most of your weath gets created. Been through many and seen my portfolio drop 50% its fine.
Learn from Bob, just invest & don’t worry (or sell): http://awealthofcommonsense.com/2014/02/worlds-worst-market-timer/
Good story, Tnx
Time in market vs timing the market etc etc. who cares if there’s a recession as long as you get 8-10% YoY over most 30 year windows!
Looks like strategy is long term holding. If only I had started earlier :)
So start now.