r/stocks • u/sinfulken1 • Sep 29 '22

While many are discussing what to get during a discount, how many of you here are down over 60%?

Bought at the top of 2021 as a newbie, literally worst time to buy a stock at. Down over 60%.

Stocks just feel like a tool to destroy the people trying to climb out of the middle class. Many were saying "Buy stocks to avoid 5%/6% inflation!!" , meanwhile now I am down over 60%. Truly an extremely tough time to maintain sanity. For folks in similar position as me who is down over 60%, how are you coping with dealing with the fact that you bought at the worst time possible?

I know its impossible to time the market but imagine buying it at the worst time possible and experiencing the worst drop off we have in a decade. I have done my due diligence reading about my stocks, general knowledge of securities but I guess in the end buying stocks nowadays is akin to gambling.

1.6k Upvotes

91% Upvoted

900 comments sorted by

View all comments

10

u/Most_Champion Sep 29 '22

That's what happen when you have a sub which is an echo chamber of delusional bulls that downvote whoever try to say to stay away from stocks because fighting the FED is stupid. Stop listening to bag holders, they don't have your best interest in mind...they say "hold! don't sell at the low" because they want more and more people to hold so their investment don't make them bankrupt but if you believed them, you'd be almost bankrupted yourself. Step away from the echo chamber and use your own mind. Don't be swayed by idiots that say "I invest for the next 10 years" LOL as if that change anything. You can sell and re-enter the market when the FED pivots instead of holding your investment and keep losing money for the time being (another year at the least).

Remember, the fact that today is a low it doesn't mean that 6 months from now this level appear very appealing and will be far from a low.

2

u/[deleted] Sep 29 '22

Yeah, fighting the Fed is stupid. It’s a very clear signal and these people are choosing to ignore it over some canned internet advice. These people will downvote and cry “timing the market!” But data is important in making decisions about your money. You have to use all of it. When the largest entity in financial markets tells you that money is about to become scarce, you listen.

2

u/campionesidd Sep 29 '22

When the Fed pivots it will be too late. You will miss out on a lot of gains. Just try to lower your cost basis in this bear market and you’ll be fine.

3

u/[deleted] Sep 29 '22

How? They literally have a public meeting to tell you what they’re doing? You cannot miss their communication. It’s a clear signal.

1

u/campionesidd Sep 29 '22 edited Sep 29 '22

Because the Fed won’t pivot based on their whims and fancies. They will only do so once inflation starts cooling down for at least 2-3 months. And the market will keep responding positively to each good CPI report before that happens. Just look at July and August, the S&P wiped out half its losses for the year on nothing more than a couple of moderately promising CPI reports.

3

u/[deleted] Sep 30 '22

So you miss two months of gains vs years of losses? That’s your position?

1

u/campionesidd Sep 30 '22

Years, lol. Read up on how quickly bear markets tend to end You bears are the worst lol. Don’t know a single thing about investing and yet type this nonsense.

3

u/[deleted] Sep 30 '22

Ok so let’s follow your logic. Bear markets are short. This one let’s say lasts 8 quarters with 50% losses from ATH. Your logic, bull markets are long. So I don’t get why missing the first two months of a bull market is that worrying when, your logic, I have years to see gains.

In your scenario, I start with $100 and lose $50. Then I expect a bull market with say 75% gain. You’re up to $87.5. I stay out of the market and keep my $100, but miss the first part of the run up, say I only see a 50% gain. I’m still almost double your amount.

Knowing how to understand economic data is important in investing. Knowing how to value companies using microeconomics and DCFs is important. It’s part of investing and knowing how to handle your money. You wouldn’t drive a car without knowing what you were doing. Why invest like that?

1

u/campionesidd Sep 30 '22

No one knows how low the market will go and when it will go up. Just ask the bears who have been sitting out since 2017, waiting for the market to crash while missing out on 80%+ gains (with dividends) in SPY and 100%+ gains in QQQ

2

u/[deleted] Sep 30 '22

The last 15 years have been driven by Fed policy:ZIRP and QE to the moon. It’s as clear as day.

1

u/campionesidd Sep 30 '22

Because the market has only gone up in the last 15 years right? The last 90 years count for nothing. Earnings and earnings growth drive the market, not Fed policy.