Selloff a wake-up call for investors

(20-10-2014, 10:42 AM)violinist Wrote:

(19-10-2014, 10:04 PM)greengiraffe Wrote: 85 - Pan Elec Crisis,

87 - Black October

97 - AFC

07 - GFC

Hopefully not 2017

May I ask, if choose one, which is the "best" learning experience? (my choice is GFC)

I forgotten about the 911 and SARS.

I m a human afterall and appreciate each learning experience that is new. I just learn to be better and move on. So far so good as both tangible and intangible wealth have bettered inflation rates.

GG

Good afternoon everyone.

1990 The Gulf War.

(19-10-2014, 10:01 PM)Temperament Wrote: "It's not quite so easy as buying a few shares that pay a decent dividend and then just getting on with life. Unless you can watch your stockholding decline by 50 per cent without becoming panic-stricken, you should not be in the sharemarket".

Let's take a survey. How many of you here had live through at least once a 40 to 50 % portfolio decline and survive?
Start with me.
i had. This recent GFC was the most shocking to me even after living through some others 30 to 40 % declines.

I had. It was the AFC and its aftermath. One cannot help but be hardened after facing 50% portfolio decline for years on stretch. In comparison the GFC was like a blip.

(20-10-2014, 01:34 PM)kichialo Wrote:

(19-10-2014, 10:01 PM)Temperament Wrote: "It's not quite so easy as buying a few shares that pay a decent dividend and then just getting on with life. Unless you can watch your stockholding decline by 50 per cent without becoming panic-stricken, you should not be in the sharemarket".

Let's take a survey. How many of you here had live through at least once a 40 to 50 % portfolio decline and survive?
Start with me.
i had. This recent GFC was the most shocking to me even after living through some others 30 to 40 % declines.

I had. It was the AFC and its aftermath. One cannot help but be hardened after facing 50% portfolio decline for years on stretch. In comparison the GFC was like a blip.

Agree GFC recovery was a surprise in terms of time.
But your stock Portfolio in terms of your % of total assets and absolute amount of $$$ invested would carry more weight(degree of fear?) then how many % the market has tanked.
i think the absolute amount $$$ invested makes your heart jitters & flutters more. Further more not necessary the market has tanked 50% so is your portfolio. Thank your lucky star, your skill or thank your GOD if your portfolio show a loss of only 20 to 30 %.
You should make money when the market recovers.

And we all who had experienced 50 % market tanked of our portfolios most probably were at different crisis years. That's why each of us will choose a different extreme market bear year of fear.