The stock market is doing well. Phew! I survived the crash and didnt wind up homeless. This was my first experience with a stock market dip and I learned somethings about myself:
1. I get more sorrow/stress from losing than I gain/feel from increases.
2. I would have pulled out the day after the stock market dropped way way down if it were not for this blog and everyone telling me it will come back.
3. That alot can happen in less than a year. If I have 30 years till retirement- I really dont need to be concerned right now.
4.That my parents money is very important to me. Being responsible with it is a way I honor their memory.
5. That when the news, people and everything is predicting hard hard times to come, and a recession or impending depression- my fears of whatthat means are not nearly as bad as the reality.
6. Karma. People who are irresponsible with money and keep up with the Jones's with money they dont have really do get what they have coming to them. No need for jealousy- let reality play out.
7. Diversity is really the way to cover your butt. Even though stocks are doing great right now- I know I need to get more in bonds to maintain a healthy diversity.
I myself have recovered significantly. I am going to rebalance my holdings so I am a in a little bit of a safer position. Today I am moving 30% of my stocks into bonds as a way to safeguard my heart in the event of another decline. Hopefully it will work out.
Stock Market musings
October 16th, 2009 at 02:29 pm
October 16th, 2009 at 03:37 pm 1255703829
So glad you listened to us on #2. !!!
#6 - I wish more people would realize. I see people doing excellent financially, bitter about the Joneses and such. I don't sweat it. I KNOW too many of these people to think there is anything to be jealous of. I'd rather be safe and boring and secure, and saving, any day!
Even with all the news on record pay for stock execs. I have 2 stock broker clients who made record pay this year. They also worked about 5000 hours this year. It's shady and doesn't make much sense, but I know they are being worked to death. Jealous? No.
October 16th, 2009 at 05:01 pm 1255708887
October 16th, 2009 at 06:25 pm 1255713915
October 16th, 2009 at 06:36 pm 1255714611
October 16th, 2009 at 07:44 pm 1255718670
The chart I posted in my last entry is a reminder of what is hot this year may not be hot next year. Remember use fear as a way of saying there may be too much risk (as a gut check), but don't let fear rule you. You're smarter than that.
October 17th, 2009 at 11:08 pm 1255817339
You get 'it'! Well done.