2020 Covid-19 Recession

[fenders53]

(04-19-2020, 09:20 AM)rayray Wrote:

(04-18-2020, 09:44 PM)fenders53 Wrote:

(04-16-2020, 09:38 PM)TIKR Wrote: I know everyone knows this but I think a helpful reminder.

The average investor has underperformed the S&P 500 by ~460bps/year. DALBAR, which performs this annual study, attributes the underperformance to investors attempting to time the market and moving into and out of investments too frequently.

The best thing to do is to continue to buy and hold for the long-term, especially during market drawdowns such as the one we are currently experiencing.

Another favorite example of mine is the Magellan Fund. Peter Lynch generated 29% annualized returns during his tenure. Guess what the average investor made in his fund? The average investor lost money because they invested in and redeemed from his fund at exactly the wrong times!

Try to focus on the long-term prospects of the companies you are investing in.

Wishing you all the best out there!
Bobby

(04-18-2020, 07:12 PM)rayray Wrote: I sold bupkis : )

Did you sell it at the top? 

I sold bupkis at the top too LOL


I keep it very simple and don't move a whole lot of money around--I do have some stocks I will eventually sell just haven't gotten around to it, not sure when it will happen though. I'm going to have to figure something out because my kplan moved into funds that don't throw off short/long term capital gains, I prefer share accumulation in addition to new dollars added to portfolio--so no capital gains paid out don't make me smile much--I'll probably do a non-taxable trust2trust transfer, eventually.

So far, during this whole covid19 mess I have one dividend suspension.

I'm a bull at heart but market downturns is what gets me excited to put money to work, these are good times to invest--the question is how long do we get to buy at depressed levels?

Depressed levels ended weeks ago.  About 20% of the SPY are at or near ATHs.  The SPY forward PE is likely well north of 20 now.  This isn't the same economy that we had last fall, nor will it be soon.  I dodged a few div suspensions and expect a few more.  I caught the dip and traded it.  I am as long equities as I should be for my age, and have plenty of cash for another dip I hope comes.  I expect one, though it's entirely possible the FED will not allow a free fall like March.  I am confident they are going to try.  My #1 concern now is small BIZ.  It's not optional.  They don't have months to help them or this is going to come unwound very shortly.  It's a lot of money.  Too much printing?  I don't know.