To use a concrete example, if you have a million bucks socked away for retirement, drawing down $ 30,000 a year (in addition to any other sources like Social Security or pensions) is a conservative enough choice that you should be able to sleep at night, confident that even
extreme swings in the market won't harm your ability to keep your portfolio healthy into your nineties.
Not exact matches
As we saw during the global financial crisis, even the United States — considered the world's deepest, fairest, most liquid, best - regulated
market — is prone to
extreme price
swings far exceeding any lasting changes
in underlying business value.
I also don't mind seeing
extreme volatility
in my portfolio with
market swings, and have been successful by buying during dips
in the
markets.
When stocks hit certain
extremes from a historical price level standpoint, and likewise, sentiment is
swinging to negative
extremes, it's usually not long (often just hours or days) before the bottom is
in and a new bull
market begins.
Rather, the US Securities and Exchange Commission is investigating whether these products have played a role
in creating
extreme market volatility, especially the huge
swings we saw
in early August.
The sharp
swing below $ 6,000 suggests that the recent breakdown
in price will be more sustainable as the
market shifts from one
extreme to the other.
These emotions
swing from one
extreme (of hope and greed) to the other (of fear and despair), and drive the
market to trend and countertrend,
in larger and smaller degrees.