TheBigShort
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Stock market correction or bear market/crash? Either way I bailed.
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galway_blow_in
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Are you questioning the efficiency of markets?
well ive never bought into the notion held by some that the market is always at the level it should be
were that the case then it could be argued that buying the market two weeks ago was no less wise than today and only a denier of reality would advance this view , which is a different thing than saying you cant time the market , i accept that but there are undeniably better times to have purchased
In Euro terms, US equities are down roughly 5% YTD, whereas EZ equities are pretty much flat.
Not that market gyrations over such a short time period are proof of anything.
I made the point before that the average holding period for stocks is now just 10 months so most of the market is not long term investors, I know the last 2 years was unusually quite but it must be the case that volatility is increasing all the time with the speed that people can sell large holdings in a click. I can see how people could liquidate a portfolio worth millions in a few seconds with the action on Monday but would be much slower in investing millions, they might take years to do that.
galway_blow_in
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the VEUR etf ( which covers the eurozone , uk and switzerland etc ) etf is down 3% according to google finance
the s + p ( in dollar terms ) is up slightly 0.85% , its down more than 2% in euro terms but still performing better than the european based etf
https://finance.google.com/finance?q=AMS:VEUR&ei=eQp7WuHuJMiXUKqeLQ
https://finance.google.com/finance?q=AMS:VUSA&ei=fQp7WvCPNITOswH65JrgBQ
here is an ishares etf which covers europe and its YTD performance
https://finance.google.com/finance?q=AMS:IMEU&ei=mgp7Wtj6E4PEUe6GlPgP
There is an eff called svxy which basically makes money on the lack of volatility in the market, it fell off a cliff over the last week. Some guy on Twitter posted a funny tweet,
"Something previously only available to elite hedge funds, ETFS have truly democratized the act of losing all your money in a single day"
I suppose you could add bit coin to that but over a few weeks
"Something previously only available to elite hedge funds, ETFS have truly democratized the act of losing all your money in a single day"
I suppose you could add bit coin to that but over a few weeks
galway_blow_in
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is the instrument you are referring to not an ETN form rather than ETF ?
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JoeRoberts
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Have you any advice for the female readers?
That particular one is an ETF, but there are similar ETN derivatives. They're extremely complex instruments. I understand there's already attempts at a class action lawsuit over this one.
galway_blow_in
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not that i sold or needed to sell since last july but i chuckle at the advice of some on this site who believe based on taxation rules in this country that its better to simply sell units for income than instead invest in companies which pay hefty dividends
what do you do these days if you want 5 k worth of stock from a 100 k valued portfolio ?
two weeks ago if the fund was worth 100 k and you sell the 5 k worth of units today for whatever expenditure required , your portfolio is now down to 85 k as your 100 k fund is down 10% this past fortnight
sounds good but wholly impractical
what do you do these days if you want 5 k worth of stock from a 100 k valued portfolio ?
two weeks ago if the fund was worth 100 k and you sell the 5 k worth of units today for whatever expenditure required , your portfolio is now down to 85 k as your 100 k fund is down 10% this past fortnight
sounds good but wholly impractical
galway_blow_in
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This is petty. I work on the assumption that all advice is given in good faith. It’s up to me to determine if I believe it to be sound and appropriate for me.
Challenge and question, but don’t belittle.
galway_blow_in
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" Sticks and stones "
Good advice, but please remove your CAPS lock, no need to SHOUT.
I'll keep this as simple as i can. Let's look at the other option - dividend paying stocks. Say you've a stock paying a 5% dividend. If the market is down 10%, and your share god's ex-div, all other things being equal you'd be down to 85 as well, but have a bigger tax bill.
galway_blow_in
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A 5% dividend stock doesn't reduce by 5% every quarter at ex dividend day
It's good advice to an extent but even Warren buffet no longer does this, he used to but he has been selling down long held large shareholdings in wells Fargo bank and wall mart. In the last 10 years there has been considerably more changes in his portfolio, he used to be a big investor in newspapers and Gillette. Indeed he used to use Gillette as an example of a buy and forget investment, he had to change that when the hipster generation came along. Many people also thought that with the banks, you could buy them and forget them
I was taking a simple example where you wanted 5k from a 100k portfolio (your scenario, not mine). So if it's a quarterly dividend, it'd need to be a 20% yield to meet your cash requirements. Whatever - if it declares a 5k dividend, it will drop 5k after going ex-div.