Varmint
NES Member
Definitely I-bonds. Avoid TIPS funds, they've been losing money as inflation goes up.
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Market in the toilet who’s buying?
- Thread starter MudMuppet
- Start date
Definitely I-bonds. Avoid TIPS funds, they've been losing money as inflation goes up.
But no mean tweets!!I made the mistake of looking st my 401K today.
- 17.41% year to date.
- 5.22% 1 year.
I miss the +40% times.
I am almost tempted to stop the contributions for 2 or 3 paychecks ... but I will keep them flowing.
What does NES think?
I was down 15% for the year on Thursday it really didn’t feel good seeing every dollar I’ve put in this year essentially lost. But for us young guys buying the dip is a good thing. It just hurts.
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Whats up with the VIX? Its going nowhere
Varmint
NES Member
Lot of fear but no capitulation yet?
Im buying 10K of these for me, probably 10K for my wife,
My father and mother are going to buy what they can as well.
IBonds are great - I have been purchasing them for a few years. They fill a role for a long term emergency fund if needed or will help gap any shortfalls before taking SS
Couple of things to note: there is a 1 year lockup of your $ before you can sell them and you lose the last three months of interest if you redeem them in less than 5 years
Couple of good resources that I send to people who want to learn more:
tipswatch.com
A much longer set of posts but a good place to ask questions if you have them:
Couple of things to note: there is a 1 year lockup of your $ before you can sell them and you lose the last three months of interest if you redeem them in less than 5 years
Couple of good resources that I send to people who want to learn more:
I Bond Manifesto
Why inflation-linked savings bonds can work as part of your emergency fund May 2, 2022, update: Treasury holds I Bond’s fixed rate at 0.0%; composite rate soars to 9.62%. Professor Zvi Bodie, a lon…
tipswatch.com
ETA: TIPSwatch website from above link is a great resource to learn about and keep on top of what is going on with ibonds and TIPs
Broccoli Iglesias
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This part confuses me:IBonds are great - I have been purchasing them for a few years. They fill a role for a long term emergency fund if needed or will help gap any shortfalls before taking SS
Couple of things to note: there is a 1 year lockup of your $ before you can sell them and you lose the last three months of interest if you redeem them in less than 5 years
Couple of good resources that I send to people who want to learn more:
A much longer set of posts but a good place to ask questions if you have them:I Bond Manifesto
Why inflation-linked savings bonds can work as part of your emergency fund May 2, 2022, update: Treasury holds I Bond’s fixed rate at 0.0%; composite rate soars to 9.62%. Professor Zvi Bodie, a lon…
I thought interest adjusts automatically. Is that saying the 9% will continue to pay 9% for 30 years? ... even if interests drop down to 1% or go up to 12%?
No, I think it is a strategy to simply sell older ibonds and buy into newer ibonds if the newer ibonds have higher interest rates (the wording there is an interesting choice as its not really a 'put' as classically defined). But that strategy would only work if you only want to keep 10K or lower in ibonds in total over time as the max you can buy in a any given year is $10K per person. Seems like a strategy most wouldn't use unless you are just doing interest rate arbitrage on a small fixed amount
iBonds have six months of fixed interest from the 1st day of the month you purchase them at the then current rate and then will adjust after that six months to whatever rate is current at that time
I just plan on accumulating iBonds each year if I can
I believe in gold and silver. Just increased our position in AAAU. Looking to buy more physical but as we are roaming I am a little concerned about getting shipment. Maybe I will find some "local" sources. We will be going to family next month so we could have shipments sent there.
Broccoli Iglesias
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Exactly, if the bonds adjust, then why would you ever need to sell some to buy others at a higher interest rate?
Might as well keep the existing bonds, then decided if you buy or sell when the interest rate changes.
I am not sure if I am missing something or someone is trying to overcomplicate a very easy thing.
Varmint
NES Member
The fixed rate stays the same but that’s like 0% right now. If the fixed rate goes up it makes sense to sell those with lower fixed rates and buy new ones.
The 9% is variable and will track the CPI.
You should look into selling options, not buying options. If you are willing to risk being long stocks, selling covered calls against shares you own actually reduces the risk of owning those shares. Theoretically, selling calls and receiving premiums can eventually bring your cost basis (risk) down to zero.
For new option traders, I would suggest only selling options (covered calls/cash-secured puts) in a cash account. No margin risk , etc.
Education is your friend.
andrew1220
NES Member
I made the same mistake too. Well it’s a 457b plan - the .gov equivalent to a 401k. I lost like $8k in the last few weeks. I don’t have much in it right now as I rolled over my previous employers 401k into it. I only contribute $300 a month. But it still hurts lol. I’m wondering if I should stop contributing as well.I made the mistake of looking st my 401K today.
- 17.41% year to date.
- 5.22% 1 year.
I miss the +40% times.
I am almost tempted to stop the contributions for 2 or 3 paychecks ... but I will keep them flowing.
What does NES think?
Broccoli Iglesias
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When I thought about stopping, I though about stopping for maybe 1 or 2 months, but not touching the funds, then restart contributions once markets start to look a little better.
Not rolling it into something else then roll it back into stocks when everything is high again, a mistake way too many people make. They essentially always buy high and sell low.
andrew1220
NES Member
Yeah that’s what I was thinking of doing. Because I feel like I’m just pissing away $300 per month at this point. Then once the market changes for the good, continue with my Roth contributions.
Granted I won’t be retiring until ~30 years from now so I dunno if it matters? I’m losing money now but at some point things will change (
) and the value of my 457b will go up closer to retirement?I’m not a skilled financial guru to know what’s best lol. Just trying to have extra money on top of my pension come retirement.
Broccoli Iglesias
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I hear you, it is tough.Yeah that’s what I was thinking of doing. Because I feel like I’m just pissing away $300 per month at this point. Then once the market changes for the good, continue with my Roth contributions.
Granted I won’t be retiring until ~30 years from now so I dunno if it matters? I’m losing money now but at some point things will change (
I’m not a skilled financial guru to know what’s best lol. Just trying to have extra money on top of my pension come retirement.
I wish 401K reporting was better, it seriously blows.
I am keeping my contributions for now.
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You two are young. Don't stop your contributions now when you're buying low!
Broccoli Iglesias
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You are right.
Exactly, just look at it like when the price of everything drops it just means things are on sale. I'm also young and not a financial wizard but I do understand the concept of dollar cost averaging.
Varmint
NES Member
+1
Maybe low is not the right word, but you're paying 20% less than a few months ago, that's a good thing, not a bad thing.
What’s your number of shares owned * your average cost per share * 0? lol. Yes, some of these companies are going to 0…
I’m just going to leave this right here:
View: https://m.youtube.com/watch?v=-DT7bX-B1Mg
Soundwave
NES Member
Wish I out more than $100 in RIBT... It dropped way down but now I'm up.
Broccoli Iglesias
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Varmint
NES Member
You clearly haven't studied the Japanese art of catching falling swords.
View: https://www.youtube.com/watch?v=rzEhLJ18THE
Broccoli Iglesias
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Meh, depends, some are, but the good ones aren't.
Netflix is not going to $0.
PLTR is not going to $0.
PayPal is not going to $0.
Cisco, IBM, Microsoft, APPL, DOCU ... they are nto going to $0.
All these were affected, it could take 3, 4, 5 years to get to where they were, but they can get there and are not going to $0.
Edit:
Most of these companies are on sale now. 5 to 7 years from now you will be thinking "f*ck, if I put $$ in company XYZ I would have a downlayment for a new house".
i adore the past tense custom charts that are compiled by 'what would have happened' if you would buy an every stock as its low and sold it as it peaks.
looks truly awesome.
next.
Broccoli Iglesias
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I didn't read the entire thread. But I dont think they are buying when it is low, looks like they sre buying when it is mentioned.
Pure gambling based on the company being in the news. If it is in SP, it is because something relevant happened.
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They buy when its mentioned and sell when the next one is mentioned. They also did an Inverse Jim Cramer index which is beating the S&P by 30% lol.
View: https://www.reddit.com/r/wallstreetbets/comments/uiipwu/this_is_actually_beating_the_sp_by_over_30_for/
How many more “whoopsies we made a booboo!” will there be?
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