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Timing the market

January 29th, 2016 at 01:55 pm

Last post I said avoidance is what I am practicing. I'm going to avoid looking at our investments for the year or until I need to. Everything is just being left alone.

But I've realized my DH and I time the market not deliberately but accidentally. We sold in 2005 at the peak in southern California and bought at the peak but it worked out. Southern California still hasn't recovered but where we were did go up. Now I think like the last bubble you won't be able to tell until you are able to look back at the market. Did we sell at a high point in the market at 2015? Who knows.

I do know the stock market did go down. I know we didn't invest any home equity because we might need it. So some timing is happening to us but it's not on our decision but rather circumstances. Twice we've not wanted to be loud distance landlords.

But this stock market downturn did cement the idea that you don't invest money you can't afford to lose or ride out staying invested. We used to invest most of our emergency fund and have only 2-3 months of cash. But before we moved we cashed in about 18 months cash and home equity. We decided the risk wasn't worth it. Turns out that was a good assumption

What do you think about the housing market? And the stick market?

2 Responses to “Timing the market ”

  1. PatientSaver Says:

    Eh.... it's not the best of times.

    The housing market in Connecticut (Fairfield County) has been tracking sideways for some time. When I briefly had my house listed in 2008, it was listed at around $409,000. Today, Zillow says it's worth around $279,000. I'd feel better if that number at least exceed $300K, but it's been stuck in the $275 range for years now.

    Stock market is always dicey but there aren't a whole lot of alternative. I do keep a healthy amount of money in cash. I have 2 taxable money market accounts with Barclays with about $25K I think and another $7K or so in a Vanguard MM which has been waiting to be reinvested in something.

  2. rob62521 Says:

    The housing market in my city isn't the greatest. Some other towns are claiming an upswing, but our paper publishes the real estate transfers and the column doesn't seem to be huge.

    As for the market...blah! I keep telling myself we are in it for the long term and not to get too upset.

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