Comments on: Don’t Compound Your Investment Losses by Investing Less in Down Markets and More in Up Markets http://genxfinance.com/2008/09/23/dont-compound-your-investment-losses-by-investing-less-in-down-markets-and-more-in-up-markets/ Helping a unique generation achieve financial independence. Sat, 20 Mar 2010 15:15:15 +0000 http://wordpress.org/?v=2.9.1 hourly 1 By: March 2009 Was a Perfect Example of Why You Shouldn’t Try to Time the Market : Generation X Finance http://genxfinance.com/2008/09/23/dont-compound-your-investment-losses-by-investing-less-in-down-markets-and-more-in-up-markets/#comment-116747 March 2009 Was a Perfect Example of Why You Shouldn’t Try to Time the Market : Generation X Finance Wed, 08 Apr 2009 16:50:20 +0000 http://genxfinance.com/2008/09/23/dont-compound-your-investment-losses-by-investing-less-in-down-markets-and-more-in-up-markets/#comment-116747 [...] I’m not here to make any predictions as to what this means for the future, but I did want to point one thing out. And that’s the fact that the market moves fast, and it can and will leave you behind. If you are a trader and monitor the markets carefully, I’m sure you could have spotted many buy and sell opportunities, but for the average investor, this is simply a classic example of why you shouldn’t try and time the market. If someone sold near the bottom in February, how long did it take before they bought back in? A week? Two weeks? If you look at the chart, it’s pretty clear that had you sold near the bottom and waited just a few short days before getting back in, you probably missed out on the bulk of the initial gains. In a worst case scenario, you sold low and bought high and just compounded your losses even further. [...] [...] I’m not here to make any predictions as to what this means for the future, but I did want to point one thing out. And that’s the fact that the market moves fast, and it can and will leave you behind. If you are a trader and monitor the markets carefully, I’m sure you could have spotted many buy and sell opportunities, but for the average investor, this is simply a classic example of why you shouldn’t try and time the market. If someone sold near the bottom in February, how long did it take before they bought back in? A week? Two weeks? If you look at the chart, it’s pretty clear that had you sold near the bottom and waited just a few short days before getting back in, you probably missed out on the bulk of the initial gains. In a worst case scenario, you sold low and bought high and just compounded your losses even further. [...]

]]> By: Terry Wasson http://genxfinance.com/2008/09/23/dont-compound-your-investment-losses-by-investing-less-in-down-markets-and-more-in-up-markets/#comment-104332 Terry Wasson Mon, 02 Feb 2009 04:01:30 +0000 http://genxfinance.com/2008/09/23/dont-compound-your-investment-losses-by-investing-less-in-down-markets-and-more-in-up-markets/#comment-104332 I wonder what will happen to people who take your advice if you are wrong. They only suggestion ever given is to "Ride it Out". I am 60 years old and I lost a very large amount of money that will never come back. To encourage people to keep investing may totally ruin some lives. If you are over 50 there is a very strong chance you will be dead by the time we recover. I see little evidence of a recovery anytime soon and much more capital may be lost. There is surely a point where the loss is so great that you will never recover. The always used line that historically the market always recovers may be not accurate for today’s not so typical market. I personally will never invest again. I prefer to keep at least something to retire on and not gamble it in a very uncertain market. I’m fully aware some of you will label me stupid and call me too weak to be in the mutual funds. I hope I am wrong and those of you that stay with the “Ride it out crowd” don’t regret your choice. I simply do not trust the market today and doubt I ever will. I wonder what will happen to people who take your advice if you are wrong. They only suggestion ever given is to
“Ride it Out”. I am 60 years old and I lost a very large amount of money that will never come back. To encourage
people to keep investing may totally ruin some lives.
If you are over 50 there is a very strong chance you will be dead by the time we recover.
I see little evidence of a recovery anytime soon and much more capital may be lost. There is surely a point where the loss is
so great that you will never recover. The always used line that historically the market always recovers may be not
accurate for today’s not so typical market. I personally will never invest again. I prefer to keep at least something to
retire on and not gamble it in a very uncertain market. I’m fully aware some of you will label me stupid and call me too weak to
be in the mutual funds. I hope I am wrong and those of you that stay with the “Ride it out crowd” don’t regret your choice.
I simply do not trust the market today and doubt I ever will.

]]> By: Neko http://genxfinance.com/2008/09/23/dont-compound-your-investment-losses-by-investing-less-in-down-markets-and-more-in-up-markets/#comment-94719 Neko Thu, 20 Nov 2008 23:09:20 +0000 http://genxfinance.com/2008/09/23/dont-compound-your-investment-losses-by-investing-less-in-down-markets-and-more-in-up-markets/#comment-94719 This is a good article. I personally have doubled my 401(k) contribution and am buying up my company's stock through the 401(k) plan with tax free money. With the market down so much, it's like a double discount. - Neko This is a good article. I personally have doubled my 401(k) contribution and am buying up my company’s stock through the 401(k) plan with tax free money. With the market down so much, it’s like a double discount.

- Neko

]]> By: Jeff Rose http://genxfinance.com/2008/09/23/dont-compound-your-investment-losses-by-investing-less-in-down-markets-and-more-in-up-markets/#comment-94612 Jeff Rose Wed, 19 Nov 2008 21:37:47 +0000 http://genxfinance.com/2008/09/23/dont-compound-your-investment-losses-by-investing-less-in-down-markets-and-more-in-up-markets/#comment-94612 I wonder at times if it would be better if people couldn't see there 401k statements. Ludicrous as that sounds, think about pensions and social security. The investments behind those fluctuate every day, but you never see that. Imagine if you got a monthly statement in regards to your social security benefits. One month your guaranteed income would be $1200/mo and then the next month it would be $500/mo. Wouldn't that be fun for a lot of people? I wonder at times if it would be better if people couldn’t see there 401k statements. Ludicrous as that sounds, think about pensions and social security. The investments behind those fluctuate every day, but you never see that.

Imagine if you got a monthly statement in regards to your social security benefits. One month your guaranteed income would be $1200/mo and then the next month it would be $500/mo. Wouldn’t that be fun for a lot of people?

]]> By: Armen Shirvanian http://genxfinance.com/2008/09/23/dont-compound-your-investment-losses-by-investing-less-in-down-markets-and-more-in-up-markets/#comment-94467 Armen Shirvanian Tue, 18 Nov 2008 07:21:26 +0000 http://genxfinance.com/2008/09/23/dont-compound-your-investment-losses-by-investing-less-in-down-markets-and-more-in-up-markets/#comment-94467 I would say that this material fits along the theme of having a bit more self-control in one's daily activity. It can be easy to see a small sign, and assume that it is a message to make quick change, but one has to remember that a social rise or decrease runs based on different factors than a natural rise or decrease. People tend to make decisions to buy or sell as a group, and so one might need to extricate themselves from following the group if they want to have a chance at separating themselves in an upward direction. I would say that this material fits along the theme of having a bit more self-control in one’s daily activity. It can be easy to see a small sign, and assume that it is a message to make quick change, but one has to remember that a social rise or decrease runs based on different factors than a natural rise or decrease. People tend to make decisions to buy or sell as a group, and so one might need to extricate themselves from following the group if they want to have a chance at separating themselves in an upward direction.

]]> By: Weekend Personal Finance Links (sore muscle edition) http://genxfinance.com/2008/09/23/dont-compound-your-investment-losses-by-investing-less-in-down-markets-and-more-in-up-markets/#comment-94298 Weekend Personal Finance Links (sore muscle edition) Sun, 16 Nov 2008 22:15:48 +0000 http://genxfinance.com/2008/09/23/dont-compound-your-investment-losses-by-investing-less-in-down-markets-and-more-in-up-markets/#comment-94298 [...] Don’t compound your investment losses by investing less in down markets and more in up markets writes Generation X Finance. [...] [...] Don’t compound your investment losses by investing less in down markets and more in up markets writes Generation X Finance. [...]

]]> By: MONEY CLIPPED » Money Clippings: Navigating A Stormy Economy http://genxfinance.com/2008/09/23/dont-compound-your-investment-losses-by-investing-less-in-down-markets-and-more-in-up-markets/#comment-93725 MONEY CLIPPED » Money Clippings: Navigating A Stormy Economy Thu, 13 Nov 2008 16:20:07 +0000 http://genxfinance.com/2008/09/23/dont-compound-your-investment-losses-by-investing-less-in-down-markets-and-more-in-up-markets/#comment-93725 [...] Don’t Compound Your Investment Losses by Investing Less in Down Markets and More in Up Markets More smart advice from Generation X Finance [...] [...] Don’t Compound Your Investment Losses by Investing Less in Down Markets and More in Up Markets More smart advice from Generation X Finance [...]

]]> By: Donny Gamble http://genxfinance.com/2008/09/23/dont-compound-your-investment-losses-by-investing-less-in-down-markets-and-more-in-up-markets/#comment-93585 Donny Gamble Wed, 12 Nov 2008 16:58:04 +0000 http://genxfinance.com/2008/09/23/dont-compound-your-investment-losses-by-investing-less-in-down-markets-and-more-in-up-markets/#comment-93585 This is especially true if you are more than 10 years away from retirement. There is no need really to worry about your retirement savings now, instead just worry about increasing the amount of money that you put into these savings. This is especially true if you are more than 10 years away from retirement. There is no need really to worry about your retirement savings now, instead just worry about increasing the amount of money that you put into these savings.

]]> By: Friends Don’t Let Friends Bail Out of the Market : Generation X Finance http://genxfinance.com/2008/09/23/dont-compound-your-investment-losses-by-investing-less-in-down-markets-and-more-in-up-markets/#comment-93510 Friends Don’t Let Friends Bail Out of the Market : Generation X Finance Wed, 12 Nov 2008 00:46:33 +0000 http://genxfinance.com/2008/09/23/dont-compound-your-investment-losses-by-investing-less-in-down-markets-and-more-in-up-markets/#comment-93510 [...] of buying low and selling high. If you always invest more when the markets are doing well, and reduce or stop investing when markets are doing poorly, you’re doing just the opposite! You’re buying all of your shares at relatively high [...] [...] of buying low and selling high. If you always invest more when the markets are doing well, and reduce or stop investing when markets are doing poorly, you’re doing just the opposite! You’re buying all of your shares at relatively high [...]

]]> By: Do you feel heat from financial meltdown? Let’s make the downfall in your favor. http://genxfinance.com/2008/09/23/dont-compound-your-investment-losses-by-investing-less-in-down-markets-and-more-in-up-markets/#comment-89741 Do you feel heat from financial meltdown? Let’s make the downfall in your favor. Thu, 09 Oct 2008 20:45:19 +0000 http://genxfinance.com/2008/09/23/dont-compound-your-investment-losses-by-investing-less-in-down-markets-and-more-in-up-markets/#comment-89741 [...] to contribute more towards her 401K plan. See this related post written by Jeremy @genxfinance.com: Don’t Compound Your Investment Losses by Investing Less in Down Markets and More in Up Markets According to Ben Stein; he mentioned in his recent article: Recession-Proof Your Investment [...] [...] to contribute more towards her 401K plan. See this related post written by Jeremy @genxfinance.com: Don’t Compound Your Investment Losses by Investing Less in Down Markets and More in Up Markets According to Ben Stein; he mentioned in his recent article: Recession-Proof Your Investment [...]

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