Howdy, Stranger!

It looks like you're new here. If you want to get involved, click one of these buttons!

In this Discussion

Here's a statement of the obvious: The opinions expressed here are those of the participants, not those of the Mutual Fund Observer. We cannot vouch for the accuracy or appropriateness of any of it, though we do encourage civility and good humor.

    Support MFO

  • Donate through PayPal

The coronavirus has given investors a ‘once-in-a-lifetime opportunity,’ says hedge-fund billionaire

edited July 2020 in Other Investing

The coronavirus has given investors a ‘once-in-a-lifetime opportunity,’ says hedge-fund billionaire

/'The question is how long will it take to get back to normal?’

‘I know you’re not supposed to say this, but it’s a once-in-a-lifetime opportunity. You’re not going to see this again: Where you’ve actually got an economy that’s fine, and you’ve got a Fed pumping trillions of dollars in.’/

Maybe he is right...we maybe laughing our ways to the bank 3 yrs from now if keep buying since late March2020


  • edited July 2020
    Hi johnN, Thanks for posting the article.

    If one has the right risk tolerance assesment and follows it then they will do well overtime. Let me explain my thoughts. When equites have had the strong run that they have had of late then most investors should find themselves equity heavy. I know I have. With this, sell some equity and book your profit and move it on the other side of your portfolio which most likely will be the income side that holds mostly your cash and bond positions.

    And, should the stock market have another swoon most likely the income side will then provide some need ballast for the portfolio to lessen the effect of the falling stock market prices and it's swoon. As equity valuations fall this should put one heavy on the income side and light on the equity side. Then rebalance and move some money to the equity side staying within the confines of your asset allocation, of course. Then play the rebound with rising equity prices as the stock market recovers you should find yourself equity heavy again. Then repeat the process.

    This is not rocket science; but, I call this throtteling my portfolio and for many this seems hard to do. However, I have followed this process for many years ... and, I plan to keep doing it ... hopefully ... for many more years to come. Why? Because it works.

    I wish all ... "Good Investing."

    I am, Old_Skeet
  • edited July 2020
    Hi Sir Old_Skeet, you are exactly right.

    In my experiences, the first 100K 'balance' in our portfolio is so hard to get with all the market gains/401K div-redisbributions. The 2nd, 3rd 100K gained are easier than the first 100K [after 5-7 yrs or so].... So are the subsequent gained monies. You may have same feelings once reaching 1M [then 2M].. We did have a great bull run since 2009 when I first started investion. Think the rules for 7.5 years for doubling your total assets work well here [unless we have a massive recession/depression - contractions which we are facing right now]

    Couch potatoes and picking mutual funds that you like work well too if you have no time to fiddle around. Hard to time the market these days; we have to trust the managers that we hired to run our Mutual Funds or ETFs. Although stocks may appear cheap still these days. We may have Dows @ 35K by next few years - [12 months]; we did have NASDAQ at records highs recently [yesterday]


  • Yes. To live or die. ;(((((( Sorry, cynical me couldn't resist that one.

    2020 has provided a trading market, that's for sure. I've done well in the areas I've actively traded in/out/around various positions ... while letting my long-term stuff just boringly creep higher, reinvest, and/or otherwise do their thing.
  • Somedays I think I should simplify my investing process by investing only in VBIAX or VTMFX and let Vanguard do the rebalancing for me !
  • Awhile back we consolidated several active managed fund to VTMFX. It has done well for us - dull but very effective in the long run. Also it is a very tax effectient for taxable account.
Sign In or Register to comment.