Dow closing in on 11K -what did you do?

[Back Beach]

About one year ago it looked like the end for our world stock markets....or so the market pundits had everyone believing. I always read and reread my copies of Warren Buffet's annual reports to keep things in perspective during difficult financial times...."Be fearful when others are greedy" and vice versa comes to mind along with other timeless advice Buffet dispenses.

So the question is did you buy,sell, or hold last year at this time and how do things look now? I basically squeezed my ass cheeks and hung on for the ride. I am now glad I did, though at times I had the white towel in my hand. Anyone else care to comment?

Just for the record I still have to work until I'm 75.

[PaulS]

I didn't sell anything and bought some. Basically, bought a lot of my holdings to lower the $ cost average. Should have bought a lot more. I actually bought a bank stock earlier this morning and am thinking of buying another.

[JohnnyD]

I'm young and could take the hit so I took advantage of the drop in the market. I maxed out 2 years of IRA contributions. I thought the first lift was going to be temporary and we'd get back down to 8800 or so at some point. I missed the mark and finally bought in.

I don't think we're out of hot water yet.

[RIJIMMY]

I cant tell you how many people told me "Yeah, I dumped all my mutual funds and have my IRA/401ks in cash!" Huh? You sold in a down market??????? now that its up, i guess its time to buy in again??
People dont get it. As for me, I kept investing, and staying true to my strategy. I rebalance quarterly which recogizes gains and straightens out my risk. Im good, let her keep climbing.

[eastendlu]

I stayed pat and played the hand i was dealt.I guess i was holding aces...

[FishermanTim]

BUY, BUY, BUY!!!!
I even increased my 401k contributions and left them grow.

The ONLY advice I can give is this: Unless you HAVE to take it out, don't.... just leave it alone.

That doesn't mean you should completely ignore your investments, but don't become obsessed about every little "market correction" that comes along.

Here's a little story:

I had a co-worker that would check her investments constantly, and would freak out if the price of any stock dropped.
One time back in the late 90's I happened to be there when our company posted the annual gains for the funds.
Well, almost all the mutual funds dropped by as much as $1.00 per share, and she was pratically freaking out crying how she just lost thousands of dollars.
I then asked her one question: "Are you retiring right now?"
Of course she said "No!"
My reply was simple: "Then relax and forget about it. Any drop in price will be regained after the end of the year."

Within a week the prices were back to where they were before, and she never broke down like that again.

Anyone that didn't have to sell their investments will probably kicking themselve in the a$$ because they may have lost tens of thousands of dollars bt keeping their funds out of the market.

[Rockport24]

that's really good advice, you should pay attention, but don't watch a 401K like a day trader!

[FishermanTim]

I listen to "The Best Money Show" on WTKK (96.9) on the weekends.
If nothing else, it lets me know that I'm doing something right!

[GattaFish]

I think we will make, 11,000 and maybe a little more then I think we may see a small correction and most likely some buying opportunities this summer,,,, I have not scoured the charting yet but only a quick look,,,

I just know going to all cash in my 401k and mutual funds in the first week of Oct 2007 (thank god for the internet) when I was looking at the charting and then buying when the dow dropped below 8000 was the smartest thing I did,,,,,, I am no genius but tried to use a little common sense...

I could not fathom anyone who decided they would accept a huge loss and sell at the bottom,,, Especially if they bought solid, reputable companies to begin with,,,,of course there are always exceptions.

There was a thread here somewhere about a year ago or so that someone posted he just put a bunch of money in a 529 plan or something and was criticized a little,,, I bet that member is smiling now,,,,

[MakoMike]

Stayed for the ride. But I'm still way in the hole from when the dow was approaching 14000.

[PRBuzz]

I've day traded (outside 401K/IRA) since Feb'09 and doing very well thank you. My IRA and 401K are also doing well averaging down and strategically investing there.

[Back Beach]

I basically kept the same strategy I always have(dollar cost averaging via weekly purchases) and increased my weekly IRA contribution starting about one year ago.

I put a lump sum down when the market hit 9K on the way down. The lump sum quickly dropped about 30% when the market fell to 6500 or so, but has since rallied and its up about 40% from where I bought it. I was lucky with that one as it was a big bet on a rally in financials, which we got.

I remember Buffet put down a huge bet on GS, which kind of instilled some confidence for me and many others. Pretty sure he also put a huge bet on a S&P rally via derivatives contracts too.

[Fishpart]

Left what I had in where it was for the most part with a little rebalancing and added when we were close to the bottom all in all I came out slightly ahead of where I was when the DJIA was at 14. I wish I had been more defensive in '07 when we were near the top. I'll still be working for a lot of years to come....

[spence]

Ditto on the dollar cost averaging and didn't change a thing.

-spence

[Tagger]

Any extra money I have goes right into fishing tackle ..

[Backbeach Jake]

What Tagger said.

[RIROCKHOUND]

We pulled a bunch when it started to slide below 10, put it in an 8mo CD at 4% and made what we had dipped down back. Long-term, at our age we would have been fine waiting it out, but we needed the money shorter term for a downpayment. worked out fine, especially once the housing market climbs again.

[Back Beach]

Originally Posted by GattaFish

I just know going to all cash in my 401k and mutual funds in the first week of Oct 2007 (thank god for the internet) when I was looking at the charting and then buying when the dow dropped below 8000 was the smartest thing I did,,,,,, I am no genius but tried to use a little common sense...

I do somewhat believe in charting and volume. Consider this:

I've been reading Investors Business Daily for close to 10 years and they nailed both the internet bubble top as well as the housing bubble top. Only thing they can't tell you is how deep the correction will be, but following it has saved me from some huge losses...sometimes not losing all your money is as good as a gain.

[PaulS]

Originally Posted by Back Beach

Just for the record I still have to work until I'm 75.

My retirement plan is to work until I'm 67 and then die when my $ runs out at 70.

[ProfessorM]

Stay the course, keep adding to my investments, pray my financial planner is sharp, and hope for the best. Also keep my wife healthy so she can take on a third job. so I can retire.

[GattaFish]

Originally Posted by Back Beach

I do somewhat believe in charting and volume. Consider this:

I've been reading Investors Business Daily for close to 10 years and they nailed both the internet bubble top as well as the housing bubble top. Only thing they can't tell you is how deep the correction will be, but following it has saved me from some huge losses...sometimes not losing all your money is as good as a gain.

I agree... and no one can time the market perfectly. I just remember seeing all the long and short term indicators pointing to an overbought market and I am not stock genius.

So I decided that if I was wrong that there would be an opportunity for me to buy back in on a dip somewhere and it would be ok,, I was just not going to be greedy... I was lucky,,,

It is tough to tell right now since the market is trending higher,,, But it has been on lower volume and that could be tricky,,,and possibly lead to a correction... Just my opinion and I don't know sheeeet,,,There are some guys here a lot smarter than me,,,