Don't Let Market Crisis Go To Waste!

[steadyeddy]

Fellow Investors,

This thread is to share/discuss things you are doing differently with your investments in this bear market. 

For instance, I am taking advantage of deeper discounts with  CEFs (relative to NAV) and accumulating them. There was a time I was considering selling the CEFs I bought prior to market down turn. Now, I am a regular buyer in limited quantities.

Other than that really no change to my investment style/philosophy/AA.

Thanks in advance.

[yogibearbull]

Good variation of quotes from Winston Churchill, Rahm Emanuel, etc.

I have dome some bottom fishing in the washed out areas (SC-growth, LC-growth, Asian funds, taxable bond and muni CEFs, cryptos/COIN, etc) and some tax-swaps. Taking profits incrementally in energy.

[bizman]

I have been gradually (over the last couple of years) changing my portfolio from all individual stocks to mostly (about 2/3 of stock exposure) ETFs. I've finally figured out that I can't really know 25+ stocks that well. And if I don't have what I see as a real edge on the individual companies, why not just buy SCHD (for example) as a bogey I don't really have to worry too much about?

I still have a handful of individual stocks, but basically companies I really think I know and understand and have reason to think can outperform my passive bogey.

[uncleharley]

I have been short the S&P, but now I am just waiting & watching. I will probably go short the general market again.

[saratoga]

I have more than doubled my investments in TIAA Real Estate and TIAA Traditional. This strategy was highly effective during the dotcom crash. I had to transfer some fund from PRWCX to do so. Some of this money will return to PRWCX at some point in the future.
Since last year, I was gradually shifting my heavily growth-oriented portfolio towards a more balanced one while reducing my equity exposure. But the moves were too slow in retrospect especially after the war that I did not anticipate.

[steelpony10]

steadyeddy ,

      I use a compound calculator with I think conservative forward estimates, 2.7% growth for our muni fund, 5% growth for VTI and they “project” to reach our $ goals by age 90. I check each 6 mo-1year and tweak if necessary. Since our third leg is CEF income which has already projected to our $ goal we’ll just accumulate cash along the way taking advantage of sales like now investing in the greatest losers or more sure CEF income. I slipped in the projection of either my wife or I making it to age 90 which is pure hokum. Lol.

[anitya]

Bottom fishing in the last two weeks probably was appropriate. I told myself not to get too bearish, but this is the first correction / bear market during which I have not done any bottom fishing. I am already overweight growth equities. So, no buys in the washed out areas. Except for selling 80% of NRGX, I have not taken any profits in energy since the war began only because I have not figured out where to put that money - but may be I should not overstay my welcome in Energy and just sell and pay the taxes.

Not in line with the subject but I bought some value trap, BA, last week.

There are a bunch of Fed speaks, incl Bullard, next week. We might hear about their views on current financial conditions (incl M2), the inflation data from last week, war, and China lockdowns. I can not imagine market action would be sideways next week but various market technicians are predicting a bullish week. Likely I am staying on the sidelines, though not willingly.

[anitya]

Lower than expected economic data last weeek -

New Home Sales for Apr: 591k vs. 749k est

Durable Goods Orders for Apr: +0.4% vs. +0.6% est

GDP (Prelim) for Q1: -1.5% vs. -1.3% est

Pending Home Sales for Apr: -3.9% vs. -2.1% est

Personal Income for Apr: +0.4% vs. +0.5% est

University of Michigan Consumer Sentiment for May: 58.4 vs. 59.1 est -- this was 11 yr low

Better than expected econ data last week -

Initial (weekly) Jobless Claims: 210k vs. 215k est

Personal Spending for Apr: +0.9% vs. +0.8% est

[Deleted]

I haven't done anything in the framework of a bear market. I did do some things due to inflation in that when I cashed 10 years of gains I bought energy, international, financials. When I see a valuation and dividend that makes sense, I add or buy. I do that all the time though.

[roi2020]

My equity funds behaved pretty much as expected so I haven't made any changes in that part of my portfolio.
I continue to dollar-cost average into a Large-Blend fund and a Foreign Large-Blend fund every two weeks.
Changes were implemented in the fixed-income side of my portfolio.
I transferred assets from DODIX to a stable value fund in late December.
Within the past two months, VUSFX was sold for tax-loss harvesting and RCTIX was sold after a fund manager left.
Assets from these two sales were invested in 13-week Treasuries.

[steadyeddy]

May 29, 2022 20:07:49 GMT anitya said:

Bottom fishing in the last two weeks probably was appropriate. I told myself not to get too bearish, but this is the first correction / bear market during which I have not done any bottom fishing. I am already overweight growth equities. So, no buys in the washed out areas. Except for selling 80% of NRGX, I have not taken any profits in energy since the war began only because I have not figured out where to put that money - but may be I should not overstay my welcome in Energy and just sell and pay the taxes.

Not in line with the subject but I bought some value trap, BA, last week.

There are a bunch of Fed speaks, incl Bullard, next week. We might hear about their views on current financial conditions (incl M2), the inflation data from last week, war, and China lockdowns. I can not imagine market action would be sideways next week but various market technicians are predicting a bullish week. Likely I am staying on the sidelines, though not willingly.

"... not willingly." 😁interesting

[Chahta]

As primarily a B&H investor I have done tax swaps. For me that is a rare occurrence but a great opportunity. As a regular Joe investor I have very few opportunities to beat the taxman. $3000 will allow me to do that much larger Roth conversion. Time for bottom fishing in taxable bonds. In the long run how money is made when mostly trading is above my pay grade.

[archer]

This year is the first time I haven't ridden out the downturn. In the past months I have held a lot more cash than I ever did before. Normally I have less than 1% cash. I have invested in commodities for the first time ever. Also this is the first year I have bought short funds. While these might sound like reasonably moves, it has been a bit of floundering, but did save some money, and gave me confidence to not rely on allocation funds.

[alvinthechipmunk]

May 30, 2022 1:57:21 GMT archer said:

This year is the first time I haven't ridden out the downturn. In the past months I have held a lot more cash than I ever did before. Normally I have less than 1% cash. I have invested in commodities for the first time ever. Also this is the first year I have bought short funds. While these might sound like reasonably moves, it has been a bit of floundering, but did save some money, and gave me confidence to not rely on allocation funds.

By now, I have a good idea about how much I can remove each year from T-IRA and still not owe tax. I can re-invest it, or add some to the wife's salary to handle "one-off"  big-ticket items. (House in Asia.) ..... I still DO rely on balanced fund PRWCX. One-third of my total. And I'm learning, always, from being in here and at MFO. ENIC was a disaster. I learned from it. This year is MY first time, too, to dedicate money to single-stock natgas/oil. Still a small position, in ET. (LP, I may never sell it! Thanks for the tip, in HERE!) Add to that, a regional bank. And guns. BHB. RGR. Certainly not concentrated, although Financials as a category claim a third of my stuff, overall. At the same time, I try hard not to de-worse-ify, spreading stuff around TOO much, too thinly. I still recall the ZURICH AXIOMS, though I surely don't have them memorized. I think it's an uncanny collection of dictums which I do not slavishly follow like a recipe----- because they were surely not put together as such. There are indeed some contradictions among them. But with due diligence, research, intuition, "body English" and a big dose of prudence, they are useful. And having discovered Limit Orders, I feel "saved!" Redeemed! I got RELIGION! Limit Orders give me SOME degree of say-so about how much I pay for what I want to possess. 

[fritzo489]

alvinthechipmunk, Limit the orders also works !
Good investing to you, fritzo489

[mozart522]

Still almost all cash. Everything but I-bonds in TIRAs or Roths so no harvesting. Basically;

Oh well, I'm uh, sitting here la, la
Waiting for my ya, ya, a hm, ahm
Oh, sitting here la, la
Waiting for my ya, ya, uh

[bf22]

I have a very large cash position since I sold most bond OEFs/CEFs over a year ago.
Over the last two weeks, I have started to move back into bonds, primarily munis due to tax situation.
Good investing...

[FD1000]

The usual:
When risk is reasonable, invest 99+%.
When risk is high, I'm in cash. For months now in cash.  Only trades from hours to a few days are allowed. From memory, I made 3 trades, one small loss, 2 much bigger wins.
I'm still in cash, sold all my Munis last Friday.