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;
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.