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‘Only 4 Times In History’…
Same story, different day.
"It's all relative."
"Our sense is that most clients are 'reluctant
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I’m retired so I have a couple of issues that are not jointly compatible with the current situation. First, I rely on investment income, not prices for my living so a market drop is not critical until it damages my current yield. Second, even if I wanted to get out before the fall, and even if I knew exactly when it was coming, I’d still have three problems. My portfolio contains more than 200 individual securities so getting them sold would be a chore. Also, my positions have a 60% unrealized gain. If I sold I would have to pay taxes on that gain. This would create a huge tax bill which would impair my capital until the market gained more than the taxes. The I wouldn’t be up, I’d just be even. Finally. while I’m out how do I eat? My income would mostly be gone. I’m not the only one in this position so why do people keep telling me: the market’s gonna crash, better sell your stuff? So I suffer with what professional fixed income investors used to call the “lock-in effect.”
Buffett is there too. So are a lot of active managers.
S&P funds are locked in via ETF’s and investor mutual funds.
Plus any one in a 401 k and not retired I will be hesitant to sell till the music stops.
I am retired too and I face the question of when?