What should you do with your money in a stock market like this?

[Alhena]

The dip buying habit has been ruthlessly beaten out of me the last few months - but what should you do with your money now?

[mahatmakanejeeves]

1. Suggested Group: Personal Investing and Finance

https://www.democraticunderground.com/?com=forum&id=1121

The thread won't get lost there.

I am familiar with the investment strategy known as "catch a falling knife." I would have responded more quickly, but the bandages make typing difficult

[fightforfreedom]

3. I have learned over the years to sit tight and ride it out when the market goes crazy.

[mahina]

6. You are funny!

I needed that good laugh, thank you.

[csziggy]

2. I'm just sitting tight

My money is in good solid investments that have stood the test of time. I'm just going to wait it out and hope that the majority of those will recover eventually.

[wryter2000]

13. I don't think there's much else to do

My 401k suffered in the 2008 crash but came right back.

[csziggy]

15. Same here

I remember way back when I was first interviewing investment guys to decide who I might go with. One guy I talked to was upset that the investments my father had had a lot of mutual funds. This was not long after the savings & loan/mutual fund crash in the late 1980s. This idiot told me his clients had lost a lot of money in that crash when he advised them to get out of mutual funds.

Most of the funds my father was in had ridden out the crash and recovered nicely (he lost money on Washington Mutual but so did everybody). The ONLY reason this investment guys clients lost money - they cashed them out while the funds were down in value. I didn't go with that firm for financial advice.

[NewHendoLib]

4. Don't look! Just let it go through this, and eventually it will recover

[brooklynite]

5. We're doing exactly the same as before

We buy mutual funds on an automated monthly schedule. If the market is high, their value goes up. If the market is low we get more shares for our investment.

[spooky3]

7. Warren Buffett says, just don't look at your statements. (Easy for him

To say). It may also help to remember that in the past, the stock markets recovered from bear territory within 1-2 years.

[roamer65]

8. I'm sitting tight.

When it gets under 25k, then I am going to be tempted.

[Emile]

9. Hopefully you are rich enough you can ride it out.

Diversify your investments is probably the best advice. I have my Morgan Stanley financial advisor helping me.

[BSdetect]

10. When you sell off you pay tax and it's hard to make that back up.

Unless you have a good way to spend a lot of cash after selling it is best to ride it out.

It does take some courage or whatever.

Long term investing is our strategy.

This dip is not typical.

We are in the start of convergence in new energy, AI, robotics, medical, transport and other advances.

Huge up market potential.

[doc03]

11. I am doing nothing. I just wait it out and hope

it comes back. There is no place to put the money anyway. Just read an ad about high yield saving accounts
.85%. So you only lose 7% from inflation instead of 8% wow! I have said this before I think we are still bailing out banks that failed in 2008. Savings have paid nothing for years yet banks are charging 20% on credit cards. WTF does the other 19% go?

[TygrBright]

12. Leave it alone. It'll recover.

Unless you like to "play the market" and can afford to throw your money around, there's really only one good strategy for the average person trying to save/grow their money:

Invest it in large-scale, market-mirroring mutual funds (both stocks and bonds, let the mix depend on your age/needs) and forget about it. Pick low-cost, reliable funds managed by companies with a good reputation and management philosophy overall. Buy more as you have the cash available. Re-balance no more than 1x a year if you're under 55, 2x a year between 55 and retirement.

Over the course of decades you WILL get better results than trying to micro-manage your portfolio with every up and down of the market.

helpfully,
Bright

[XanaDUer2]

17. I have had a 500 index fund

I've set it and buy when I can. I may have to sell it for cash, though. Had it since 96

[Ferrets are Cool]

14. IF you are like ME and have to ask, best to sit tight.

[bif]

16. I'm selling some of my weaker positions.

My broker and I set a bottom price and we're unloading stocks and Mutual Funds that have broken through. Hang on to some cash and perhaps buy some bonds down the road

[MissMillie]

18. No money manager ever advises to buy high and sell low

I'm guessing that there will be a bounce... whether or not high enough to make up all the losses, I can't say. (I mean, eventually, sure.)

[wryter2000]

19. I must admit

I'm tempted to buy some stock while the price is low. I just have no idea what. Also, I have very little money to invest, so I wouldn't get much stock. It would be more a fun thing to watch it increase when this mess is over.

Years ago, I bought a couple of shares of Costco just for fun. It's been a very long time, probably 20 years, but boy, has it gained in value. It's now some real money, although not a huge amount. I'd like to do something like that again so I could feel I was getting a bargain. It's my form of gambling for small amounts.

[bif]

20. Apple

It's dipped pretty low. Good time to get in I'd say. Just my 2 cents.

[wryter2000]

21. Thanks

I'll check it out.