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Discussion Starter · #861 ·
For me, it echos of the 2000 tech wreck where profitability and valuation eventually become front of mind again. Fantastic run the last few years though.
Very neat milhouse, thanks for sharing. Yeah it was a fantastic run. Amazing how euphoric one feels during boom years where accounts are rocketing up in value. I'm a conservative investor but even I felt the "highs" of those sky high prices. Unfortunately the corrections and bear markets are never fun. I don't know if we'll get a crash, but it's probably going to be unpleasant.

The good news is that disciplined, well diversified investors can weather these storms and markets will bounce back eventually. In the long term, the market will reward those of us who have good plans... as long as we stick with our plans!
 

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Where’s all cheer and joy? Everyone should enjoy reverse new highs while it lasts.
I'm still in the accumulating stage, so I'm always happy. When stocks go up, I'm happy to see my portfolio growing in value. When stocks go down, I'm happy buying cheap shares which means higher expected return.
 

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Where’s all cheer and joy? Everyone should enjoy reverse new highs while it lasts.
My only concern at this time surrounding the general market is we had such a large run upwards and now that it's starting to fall we could have quite a ways to go. I was content to buy during the past few months and am content to buy over the next few as well. Since I have to buy when cash hits a certain percentage of allocation I will likely be buying into this declining market. I still haven't locked in my fixed income portion as I am waiting for the June announcement and rate increases in July. I may take a chunk of that and put it into stocks if they hit bear territory. As most of the market decline has come from speculative tech I have been fairly shielded from the 50-60% declines. That being said I am looking at making a couple purchases in May. Canadian banks are starting to look attractive. RY is my lowest position of those I currently hold and may look to adding to that one. Some tech plays are starting to look like opportunities as well but are only at levels they were 2 years ago.
 

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I was indeed referring to the NA markets. I would not want to see any countries exchange see the perfromance of the Nikkei 225 but it is possible for the S&P to become stagnant. Demographics play a large role in a nations growth and the US is getting old and slow. I doubt it will be the global leader it was in years past.
 

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I believe retail traders are a significant market driver, these days. They influence the price without long term holding.

I have a couple of small sized companies that are well up but I'm confident that if I wanted to sell down more than a few hundred shares, I would burn off the traders pretty quick and find out what the adults in the room are prepared to pay.

BTW, a long term investor is unaffected by this sort of market volatility. I was happy owning some great companies yesterday. I'm just as happy owning the same great companies today. If distributions are cut significantly, I will crab like housewife being told she has to buy the magazine after tearing tear the recipe out of McClean's but until that day, I remain content.
 

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Discussion Starter · #872 ·
BTW, a long term investor is unaffected by this sort of market volatility.
It's true, and I also only try to care about my long term returns... but (as per the thread topic) I really was enjoying and having more fun at the all time highs.

It's human nature. The big numbers and high wealth figures are fun. Not as fun when you see thousands of dollars "disappearing" daily.
 

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Discussion Starter · #873 ·
If anyone thinks the NASDAQ is returning to its highs any time soon, you could speculate on TQQQ. If the NASDAQ bounces back you couple triple your money. Extremely risky proposition obviously (not my kind of thing).

Or if you think the S&P 500 will bounce back, you could buy UPRO and roughly double your money.

I wouldn't do any of this myself but then again, people tell me that I invest like an old man.
 

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It's true, and I also only try to care about my long term returns... but (as per the thread topic) I really was enjoying and having more fun at the all time highs.
ATH is good for traders but not good for income investors. A company with DRIP will compound more slowly when the stock is high.
 

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Discussion Starter · #875 ·
ATH is good for traders but not good for income investors. A company with DRIP will compound more slowly when the stock is high.
This is what's so awesome about the drop in bond ETFs. Now every interest payment (coupon) we get is re-invested at much higher interest rates.

These are great conditions for long term bond investors. The yield keeps going up = future returns are rising. Short term pain and long term gain.
 

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Another beautiful day of reverse highs. Where is your excitement?
QT and rate hike just started, more to come. Enjoy while it last. GL to HELOC equities “home made investors” and TQQQ buddies.
 

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Discussion Starter · #878 ·
QT and rate hike just started, more to come.
Buddy, it hasn't even started yet! The Federal Reserve starts QT in June. The Bank of Canada is a small player. It's really the Federal Reserve's QE liquidity that drives global assets.

I'm really curious what's going to happen when the Fed starts QT. I'm not even sure they will go ahead with it, or the rate hikes through this year.
 

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I think they will still deliver on promised hikes and QT to maintain credibility. The extent of which may be muted if we see inflation wane and the market fall. My fear is that they cannot curb inflation as some profess the major causes are beyond the Fed (and BoC)'s reach. If that occurs we may see a a major collapse akin to 2008 or worse. A sharp crash and reversal would be better than a decade of slow decline. I think it would shake out a lot of non investors. I can't predict the future so I just hold my nose and try to steer into the skid. I placed some orders on a:beautiful reverse high day such as this. My portfolio was down just under .5% today. VEQT 1.25% Tomorrow it could be the inverse. I am not ecstatic about the YTD returns but understand that 10 and 20 percent declines are normal market action.
 
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