Loss of 1000 points at Open, Dow Downer! Do large down days cause you to buy or sell from your portfolio?

LTC John Shaw — Mon, 24 Aug 2015 09:51:57 -0400

I have invested since the late 80s and find the severe down drafts as unsettling but ultimately I do not change my portfolio allocation. I am a Dollar Cost Averager, I purchase consistently into a diversified set of investments via 401K.
I have stocks (US, Intl), bonds, REITs, alternate investments (commodities)
When we have huge down days, I watch but ultimately I don't change allocation because my lifetime is my planning horizon. I am using working, but sometimes I will just sit and home, grab the popcorn and watch the gnashing and wailing on CNBC or Fox Business.
What do you do?

http://www.nbcnews.com/business/markets/stock-market-turmoil-dow-plummets-more-1-000-points-open-n414746

Stock Market Turmoil: Dow Plummets More Than 1,000 Points at Open

It's another rough day for overseas markets, and all signs suggest it the losses will bleed over to the U.S.

Response by LTC Gavin Heater made Aug 24 at 2015 10:07 AM

LTC Gavin Heater — Mon, 24 Aug 2015 10:07:24 -0400

I think the markets at large are far too emotion based these days, and adversely influenced by automatic trading. I know there are stops and controls in place, but unsure who programs them and how they are established. Nonetheless I am still in for the long haul, and I rebalance at least annually.

Response by 2LT Private RallyPoint Member made Aug 24 at 2015 10:25 AM

2LT Private RallyPoint Member — Mon, 24 Aug 2015 10:25:18 -0400

Most retail investors have the majority of their assets in vehicles that do not carry any costs to reallocate. Market drops can represent a great buying opportunity for equities specifically. Of course it's no reason to take any money out of the market, but metaphorically changing lanes when the opportunity presents itself can sometimes help you get ahead of some traffic on the road to your financial goals. Pick a road and stick to it, but changing lanes from time to time can often work in your favor.

Response by CW3 Kevin Storm made Aug 24 at 2015 1:23 PM

CW3 Kevin Storm — Mon, 24 Aug 2015 13:23:12 -0400

Buy on fire sale days, selling on plunge is a loser. If you think it is going to adjust, unload early, wait for it to go down and then wait some more for the fallout, then buy when everything is devalued. The average recession actually only lasts 6 months. When the stocks you buy recover, then move up you are in the catbird seat!

Response by 1SG Private RallyPoint Member made Sep 1 at 2015 8:14 PM

1SG Private RallyPoint Member — Tue, 01 Sep 2015 20:14:06 -0400

Sounds like you understand the markets John. It's all about the proper allocation, as you know. I literally been rolling my eyes for the past two weeks. It's sickening what some people do to themselves financially, especially during the pullbacks and corrections.