VT..holding and buying

[robbojnr]

When markets go down like this do ppl always hold?

[1742]

We don’t hold, we buy more.

That being said, if you are uncomfortable because of the current volatility and trend you should review your asset allocation and maybe reduce your risk exposure. This is nothing in the grand scheme of things.

[Abs_max]

I think when someone is new, this can feel quite bad. Because until few days back you had X CHF and now it’s less than that.

But when investing in equities , one need to be mentally prepared for a long game. Let’s say at least 5 years but in general 10 years.

Over a 10 year period, gains of annual 4-5% on average are expected. But you never know when the bad time starts or the good time starts.

The common wisdom is -: not doing anything specific is often a good strategy. But it might not feel like that at that moment

[Tony1337]

If this is a market downturn that‘s making you worry, you are invested beyond your risk capacity. Or you need to get way more knowledge before continuing.

This is not even a blip in the grand scheme of things.

The asbolute WORST thing you can do is selling at any point during a downturn.
You keep buying more ideally, as now it‘s cheaper.

NEVER sell EVER, except you actually need the money to fund your life.

[purplebike]

I am a relatively young investor and I have „investing FOMO“: In these moments I try to scrape together more money and „buy the dip“. It‘s not much in the end.

But I am nowhere on my journey in relation to the people here.

[dbu]

@robbojnr

go down like this

Like… back where we were 3 months ago?

[Mirager]

I did the same, felt great about it until I realised that unless a) the “dip” is more of a crash (20% down or more) or b) i had liquidity above 100k then the actual effect is minuscule and totally not worth raiding the emergency reserves.

Say one puts in 1000/month, there is a 5% dip and they put 5000, what’s the upside of buying the dip when it breaks even again? 250 franks? Woo effing hoo.

[purplebike]

Yes I know the thing is that I‘m not far in this journey (equities <100k w\o 3a), so saving 250 franks still feels like doing something and working towards the goal (of more financial independence).

I can image that it starts to loosen up the farther I get.

[Mirager]

I’m about there too NW-wise, but it really doesn’t make much difference, especially if it means raiding the emergency fund, and also…

@purplebike

My brain doesn‘t care about the general YTD being +18% or so, but about the 1.56% dividends. That‘s why I lean towards VWRL (vs FWRA), even if the performance is a tad lower. Dividends feel like my money is doing something, and I can do something with it (reinvest it).

…feel the same and hold VWRL as my main holding

[assemblyrequired]

This (again) feels fitting here:

[Mirager]

Sir, this is a Wendy’s feels fitting here (again)!

[Luk_nuts]

@Mirager

Say one puts in 1000/month, there is a 5% dip and they put 5000, what’s the upside of buying the dip when it breaks even again? 250 franks? Woo effing hoo.

Plus where did those 5000 come from?

• From the emergency fund? → Not a good idea
• Were they just sitting there, ready to be invested? → Maybe they were there already when stock prices were 10% lower…

[purplebike]

I have quite a big emergency fund (covers expenses of 10-12 months). So that makes it a bit flexible… I can fill it up again in a short time. But yes, it’s market timing (it may dip even more?).

[Joe_Coconut]

If you feel the need to trade, create 2 separate portfolios.

One long term buy and hold, with a set strategy. Stick to it 100%. Never deviate from the plan.

Second portfolio for trading. Do whatever you want. Judt make sure you track your performance accurately and honestly.

Compare the portfolios after 1, 3, 5, 10 years.
I bet over 90% of the people did better with the buy and hold. Then you will have peace of mind and VT and chill.