Corona Cojones and the Stock Market

I was spinning my wheels about 2 stats recently. #1 How much money has disappeared from my Net Worth over the last several weeks? And #2 Where can I get more money to buy stocks at these discounted prices?

Turns out I was far from alone. Freedom is Groovy has way ahead with this post;

What Blogger Has the Biggest Cojones?

It is exactly what I was wondering about and looking for.

So I added my own 2 cents on the current stock markets.

I am down $347,363 on paper as of March 20th, 2020. Yikes! Of my net worth 42% was sitting in the markets.

Since I am a Buy and Hold kinda guy, I can live with this sort of up and down. I was there through the 2008 cycle and I believe in the ‘ride it out‘ philosophy.

If anything I was getting a FOMO about acquiring more shares at the new 30% off prices. Yes the situation is scary, but other than guns and food, watcha gonna spend your money on?

I have prepped all I can prep at this point.

So looking for new money – I sold some stocks to pile up a nice loss for the tax year. I will likely buy those same companies back after 30 days. I used the cash to double down on some stocks that have taken a 40% plus hit over the last several weeks.

But I wanted MORE capital, so I started moving boring old bonds and cash piles into the market. Nothing fancy just Vanguard Total Market Index Funds. I moved half now ($57,565) and will watch to see what happens over the next few weeks.

Either the markets will stabilize and I will sit a little longer. Or they will start to improve and I will buy another load of falling up stocks. Or they will plunge even lower and I will buy in again another $55k when I think we have hit another line in the sand, say DOW 16,000.

What are your thoughts on the stock risk vs opportunity in these times?

Stay Thirsty yet Safe my Friends.

 

 

5 thoughts on “Corona Cojones and the Stock Market

  1. I’ve moved close to three hundred K into the market in the last few weeks. I think it is a good opportunity and if not, I didn’t really need that money. What this has impressed on me is the fact that you need some margin in your FI plan. I had tons, and still do but a lean FIRE person must be rethinking a few things right nowl

    • I feel like this is a stress test for People’s FIRE plan. The markets were not going to go up forever. The coming months will open up a few eyes in the ‘live off my dividends’ crowd as well. Strange times.

  2. I agree with Steveark’s comments. Margins of safety in your plan are not discussed with the same passion as so many other thoughts in the FIRE community. They are, however, immensely important. And they are glaringly important when stress is applied to one’s plan.

    I am not a blogger but I do stalk all of you online. 🙂

    We are buying additional US equities where possible as the market travels downward sharply. We are not trying to time the bottom, just re-allocating at a time when things are on sale. At times like these I am reminded of the saying “perfect is the enemy of good”. People should not be trying to calculate the bottom and waiting indefinitely if they are inclined to buy equities on sale.

  3. I think a lot of people are second-guessing the stock market, but now is not a good time to sell off. As you said, many stocks are on sale and if history is any indicator the market will bounce back, even if it takes awhile. I’m more concerned about the short term job market as companies will have to cut expenses and potentially lay off workers. Could be tough times ahead.

Let's get things nice and sparkling clear