Feb 29th, 2020 | Money Podcast

WORST STOCK MARKET WEEK IN 12 YEARS How did YOU make out? Find out how Tom made out. Did he sell it all...and what he's doing NOW.

<--break->Here's a great analysis from the Wall Street Journal. 

Money questions: tom@blowmeuptom.com.



Submitted by TallTim on

I understand Dollar Cost Averaging, Tom - just be careful what you're averaging into.

Here's a chart analog that has been tracking pretty closely. I only put this up here because if we're in a 1920's kind of situation, we'll see a meager rally followed by years of grinding decline.

Reference chart -- https://www.zerohedge.com/s3/files/inline-images/bfmF312.jpg?itok=SH1juStm

So I'd temper that DCA strategy somewhat with the understanding that if we slide into a full-blown recession it will take years for the market to come back. I would recommend looking into commodities though, because there is a rotation into that sector when equities suffer. In addition, there's the conclusion of a 200-year sun cycle that will affect growing crops, which in turn will likely boost those prices due to falling yields.

Just a few things to think about.

Submitted by Nobody of note on

I took your advice Tom. I set up automatic, regular investing of the same amount each month a long time ago and it's working out wonderfully. I just so happen to have my automatic investments kick in at the beginning of the day tomorrow, so I'm effectively "buying the dip" without doing anything I wasn't already doing. And I have enough cash lying around that, even if this isn't the bottom of the dip, I can absorb whatever losses are coming our way without changing a single thing about my day-to-day life or short-term plans, regardless of what happens in the market.

Submitted by BIDEN2020 on

only a complete and utter idiot would park their cash to get eaten alive in the stock market.
you should stash your cash in a bank or at home until trump's depression is over, that Biden
will have to clean up just like Obama had to clean up dumbya's '08 Depression.

Submitted by KA06 on

Thanks to Tom and following the wisdom of Jack Bogle and the folks at bogleheads.org, I did nothing, having rebalanced to 80/20 equities to bonds from 90/10 back in December. Knew things were too hot and with 20+ to retire it was time to lock in some gains and ride things out. I’ll be 80/20 or a bit higher for the next few years but no panic selling. Stay the course!

Submitted by BIDEN2020 on

you are aware that trump and his cabal of fellow complete imbeciles are in charge of the so called economy and they have no idea what the fuck they're doing and neither does the 'brains' of their criminal cabal, that rush limbah guy aka frankenstein.