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What's it like being an investor during boom years?

post #1 of 8
Thread Starter 
I'm 22, first job out of college, and I'm dabbling with stock investments at the moment. Have a Roth and 401K as well. I track the market at work when I have free time everyday and all I've seen in the past 5 months is massive volatility with my Roth losing 30% of its value. My brokerage account has alternated from being net green to net red and back, over and over and over.

So, to you folks who are older and have invested during bull years.. what's it like? Investments can range from anything in real estate, to simple brokerage accounts, to more advanced investments (for the HNW folks, if you exist). What kind of returns did you realize?

I can't wait for the recession to end. Damn.
post #2 of 8
Why does it matter that your Roth is down 30%? Assuming you're contributing for retirement and not as short term savings, the only time you should be looking at Roth would be yearly or semi yearly to tweak asset allocation. You're 22, not 62. You've got 4 DECADES before you can tap into your 401k and you're concerned about market volatility over the course of a few months?

For young investors like you and I, bear markets are a good thing. Personally, being a passive investor, I'm not all too concerned with day-to-day activity in the markets. Indices have historically yielded 8% (after inflation is factored in) though I'm not really banking on that for the future, which makes starting early more important than ever.
post #3 of 8
Thread Starter 
I'm not worried at all about the 30% decline in my roth. It's an aggressive value mutual fund so I know my losses (and gains) will be exacerbated as such. I just meant to point it out as a way of saying, "the stock market really fucking sucks right now."

It just got me thinking about what it must have been like to be an investor when the economy was bustling, people were seeing double digit returns, when CDs yielded more than 1%, etc.

I just find it interesting to have entered the work force during such terrible times. I guess it is an opportunity to just buy stuff up right now when shit is cheap.. but then again, what if shit gets cheaper.. plain.gif
post #4 of 8
I am by no means an expert but i feel it is so much more beneficial to see a collapse like this when you are young. It really pushes the idea that savings and wise investment is important. If you were coming of age at a boom time you may never have learned these lessons.
post #5 of 8
Quote:
Originally Posted by Mandrake9072 View Post

Why does it matter that your Roth is down 30%? Assuming you're contributing for retirement and not as short term savings, the only time you should be looking at Roth would be yearly or semi yearly to tweak asset allocation. You're 22, not 62. You've got 4 DECADES before you can tap into your 401k and you're concerned about market volatility over the course of a few months?
For young investors like you and I, bear markets are a good thing. Personally, being a passive investor, I'm not all too concerned with day-to-day activity in the markets. Indices have historically yielded 8% (after inflation is factored in) though I'm not really banking on that for the future, which makes starting early more important than ever.

Yep, go passive and stop worrying. Read everything on this site - it'll save you masses of time and lost capital.
post #6 of 8

its not good time to do the investment

post #7 of 8
I disagree, I think the Stock market has been the stock market, it always is just as it is and has offered some nice deals in the past 5 months, and has realized some decent gains in more recent times.
post #8 of 8
Quote:
Originally Posted by ihambrecht View Post

I am by no means an expert but i feel it is so much more beneficial to see a collapse like this when you are young. It really pushes the idea that savings and wise investment is important. If you were coming of age at a boom time you may never have learned these lessons.


It is a nightmare if you graduated into '01 tech bubble burst, regained strength and ran into the '08 financial crisis.

 

Greatest population boom in history of mankind is slowing and it will be pain going forward.  Even if US don't turn into the next Japan, EU is certainly heading that way and China is following their food steps.  Go passive and you be fucked. 

 

BTW, money on hand is always better than money in 401k/IRA.  Unless you believe tax rate will be lower in the future, why defer paying it?

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