When the bough breaks.. stock market, housing, collector car

I'm at -20%. Not only has my 401k shrunk, but the dollars that are left are worth a lot less

 

Keep broadening the chart-one year is too short to make decisions. Look at five or more and you’ll see a steady, less bumpy line that trends up more than inflation. These are just big ass potholes. Don’t quit the journey, just expect the occasional rough patch (and do what you can as a driver and planner (voter) to prepare for and prevent potholes).
Patrick

 

You have the option to move that account into a self-directed 401k with an investment company like Fidelity or Schwab. That will allow you to make choices on investments and you can even utilize their wealth management team depending on the size of your assets. Chances are your current investment strategy is based on generalized outcomes instead of your individually desired outcome. You should seriously consider moving your assets to allow for a more personalized approach.

 

It likely did very well over the past 20 years, probably doubled two or three times, so don't worry too much about this past year. Money market is paying near zero, bonds are down too. CD rates are inching up, I see 1.75% now.
Series I savings bonds are presently a great option. While their interest rate is near zero, they do pay the inflation rate which is currently 9.6%. There are some minimum holding periods and there is a max investment of $10k per calendar year.
https://www.treasurydirect.gov/indiv/research/indepth/ibonds/res_ibonds.htm

As suggested, you can roll over your old 401k into a traditional IRA at Vanguard, Fidelity, Schwab, etc. 401k's usually have higher fees (maybe 1%) so they do eat at your investment over the long haul. You can buy funds from the above with near zero fees.

It's tough to predict what the market will do in the near future, but historically the market has always gone up over a longer time period. Panic selling could lock in your losses. I'm just going to ride this out.

 

Exactly. Look at what happened during Covid.... a huge drop which recovered in a relatively short time. The market also went nuts with huge gains since then. I see the present drop as more of a correction.
Looking at a broad market fund such as VTI and you see a steady increase over the past 20 years with some periods of volatility. We're pretty much at the same value that we were in Nov 2020. While it's down 24% from the peak in Nov '21, it's also up 7.6% since the peak before Covid hit in Feb 2020. Over the long term we're still doing well.

 

Crypto is looking even worse...

 

Crypto has been the investment equivalent of the danger zone on the ‘Crazy/Hot Axis’ since its emergence. It’s now time for the ‘crazy’ to ruin the ‘hot’. To paraphrase; ‘don’t stick you (money) in crazy!’
Patrick

 

Some folks made a ton of money in Crypto. Most of them never owned any.

 

In the recession that started in about 2008, on paper I lost about 35% of my investment value. I am in for the long-term and waited it out. The market came back and I recovered all of my paper losses and charged into bull-market territory. In fact I made enough money for the bride and yours truly to purchase a vacation home for cash. It looks like we are going to take another bath on paper , but I look at this as an opportunity. The old adage "Buy low, sell high" applies to investments as well as used cars. The people who panic make money for those who don't.

 

Best investment you can make is to buy a couple thousand gallon tanks and fill them with gasoline; - then sell it when the price hits $10 a gallon.
Gas will be worth more than gold or stocks; - guaranteed ROI in that one!

 

Except that the dollars you ended up with weren't worth the same as what you had before. Same with 2020. I am far poorer now than I was two years ago.

Every time those printing machines are turned on, we all pay a hidden tax. And printing money is all the Fed knows when it comes to dealing with economic problems. I think they are raising interest rates now so they have some ammunition when the real trouble comes.

 

A bunch of three letter agencies would like to have a word with you.

 

I just checked my meager Etherium investment. Down more than 70% since I bought it.

Who else is invested in any crypto and what are your positions today?

 

I stayed away from crypto as it is/was an unproven media. Looked at it and how it is just created out of thin air and stayed away. I may miss this boat, and have missed others, but then again I have ridden a few that gave me good returns.

 

I talked to my money people a few years ago about crypto currency. I was told that it isn't controlled, and they wouldn't/couldn't invest in it. I may have that memory wrong. In any event, my investment, made in 2014, was 70% above what I put into it, at the beginning of this year. It has, of course, dived a bit recently. +/- a million ¯\_(ツ)_/¯

 

Seriously, I only have $10 invested in crypto and $5 of that was a gift from PayPal for taking a look at crypto. I would never put any real money into something as unregulated and prone to theft and fraud as this has been.

I was hoping some of those touting various crypto schemes would chime in but there are no champions when you aren't on top.

 

Worst 1st half in 52 years. Crypto down big time.
https://finance.yahoo.com/news/stock-market-news-live-updates-june-30-22-115133813.html

 

Ok, "blue chip cars", still selling for stupid money, but I'm starting to notice lesser dollar(quality) cars are starting to take longer to sell, with price reductions.
Same with houses, not sold on first day in a bidding war over asking price.

 

Thumbs down on the " blue chip collectable" terminology.

 

I didn't coin the stupid phrase, but everybody knows what it is referencing.