Author Topic: What do folks think or do while markets are at highs?  (Read 8870 times)

Devils_Shadow

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Re: What do folks think or do while markets are at highs?
« Reply #20 on: February 26, 2018, 10:30:23 PM »
I used to worry about market drops a lot more in the past. I don't as much now. One loses too many opportunities to make money while worrying about the next 10-20-30% correction. If you are buying value and one that is growing its intrinsic value over time, the mark to market is just on paper not in reality. That said, market levels do factor in how much cash I want to keep handy.


Cardboard

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Re: What do folks think or do while markets are at highs?
« Reply #21 on: February 27, 2018, 06:05:51 AM »
"I'm less eager to sell because of tax issues but after a certain level it's hard to ignore prices/valuations."

While in the U.S. there is a large change in tax rate if you hold more than 1 year, there is no such thing in Canada. Therefore, thinking about taxes should never enter the decision to sell IMO. Whenever this has entered my mind in the past it clouded my judgement and I almost always made mistakes.

Tax loss selling is another glorified waste. Sell things because you no longer want them. Not because it provides a deduction.

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rb

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Re: What do folks think or do while markets are at highs?
« Reply #22 on: February 27, 2018, 10:26:15 PM »
"I'm less eager to sell because of tax issues but after a certain level it's hard to ignore prices/valuations."

While in the U.S. there is a large change in tax rate if you hold more than 1 year, there is no such thing in Canada. Therefore, thinking about taxes should never enter the decision to sell IMO. Whenever this has entered my mind in the past it clouded my judgement and I almost always made mistakes.

Tax loss selling is another glorified waste. Sell things because you no longer want them. Not because it provides a deduction.

Cardboard
I agree that one should make investment decisions based on the face value of the proposition. Focusing too much on the tax aspect can induce one to loose his mind and make stupid decisions just to save a little tax.

However facts are what they are. When you pay the deferred tax you surrender part of the capital. The magnitude of which depends on the marginal tax rate and the value of the deferred liability. Mathematically it makes sense to accept a lower return for existing investment A as opposed to prospective investment B up to a certain threshold. The bigger then gains and the higher the marginal tax rate, the bigger the threshold.

writser

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Re: What do folks think or do while markets are at highs?
« Reply #23 on: February 28, 2018, 12:42:16 AM »
I watch porn.
When you are dead, you do not know you are dead. It's only painful and difficult for others. The same applies when you are stupid.

DooDiligence

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Cigarbutt

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Re: What do folks think or do while markets are at highs?
« Reply #25 on: February 28, 2018, 05:56:00 AM »
When the consumer sentiment/savings rate ratio is high, I tend to consume more stuff unrelated to investment and to save time to re-visit classics like "That which is seen, and that which is not seen", by Frédéric Bastiat.

Foreign Tuffett

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Re: What do folks think or do while markets are at highs?
« Reply #26 on: February 28, 2018, 06:53:33 AM »
I watch porn.

Read history, philosophy, and theology.

OK, since people are giving honest answers in this thread, I mostly watch porn too.

Jurgis

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Re: What do folks think or do while markets are at highs?
« Reply #27 on: March 01, 2018, 12:25:28 PM »
I watch porn.

Read history, philosophy, and theology.

OK, since people are giving honest answers in this thread, I mostly watch porn too.

Overwatch porn.  8)

Beat that.
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villainx

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Re: What do folks think or do while markets are at highs?
« Reply #28 on: March 01, 2018, 12:35:53 PM »
I used to worry about market drops a lot more in the past. I don't as much now. One loses too many opportunities to make money while worrying about the next 10-20-30% correction. If you are buying value and one that is growing its intrinsic value over time, the mark to market is just on paper not in reality. That said, market levels do factor in how much cash I want to keep handy.

Mind describing your experience (and age range).

Since posting here last year, I guess I have been mostly doing what I've been doing, with only occasional thoughts on market levels/corrections.  I have been diversifying more to what I think would be more resilient companies/stocks - BRK, Fairfax, etc., but also taking small positions in areas that I find promising - like Square.

It's hard for me to sit on cash in general.  I just have a kind of game plan, and if there's money, I tend to just look for the best value in my game plan. 


LC

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Re: What do folks think or do while markets are at highs?
« Reply #29 on: March 01, 2018, 05:25:46 PM »
Transition from more volatile assets (financial assets) to less volatile assets. Homes, land, etc.
"Lethargy bordering on sloth remains the cornerstone of our investment style."
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