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Having reserves for opportunities -Britain Exit EU


Smitty77_7

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While I refused to do this, during post 9/11, several people I worked were parking 401K funds before the first tower fell. (I refused to do anything, knowing it would hurt my wife and I, because as the markets fell it seemed to me to be another victory for the terrorists.) Several of my fellow workers did very well, as they started to leverage back into the markets over the next few months.

 

So what? Well though I would not sell, for stated reasons, I did at that time sit down with my wife and recommend that we retain a larger reserve liquid fund, for opportunities provided during significant market swing times.

 

This is such a time now, with Britain leaving the EU. While we're in retirement mode now, and thus have a different view on the markets and investing in general. We still retain a larger 'reserve fund' then our Financial Analyst likes to see. This will be the first major swing down since we retired, and we will look for opportunities over the next week of financial uncertainties to leverage these funds in. And only the third time since 9/11 that I've made significant moves with this reserve fund. (And then, over the next two to three quarters, selectively harvest off of some funds to rebuild our reserve fund.)

 

So what? Well I'd read hear on this forum many times about how many of you approach the world of financial investments. Sure, from varying needs and view points. So, I wanted to share this as perhaps some of you have funds, or may want to carve some funds out, for such times.

 

Sure, it's always Captain Obvious on this kind of thing. But when talking to family members and a few friends, I found many of them did not have a 'Bucket of reserve funds, waiting for investment opportunities.'

 

Best to all, and best to EU in general. It's been a bumpy road for the EU, and this could be final blow. I personally feel a Economically Tied together Europe, made for a safer and stronger Europe. But, the voters have spoken in Britain... We will see.

Smitty

Be safe, have fun,

Smitty

04 CC Allure "RooII" - Our "E" ride for life!

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Good advice Smitty.

 

I'm committed to hanging in there since Musk scared everyone by announcing Tesla is buying Solar City. Long term I am not worried but it would have been better had they done SCTY as a Tesla company from the start like the Power wall and Gigafactory.

 

Smitty I had that with very large earnings from my last company, when all we had were utilities food and clothing outflow. House land and other properties paid for cash up front or soon after gaining control. and had excess from just our retirement monies. In late 2007 and 2008/9 my income was not affected and everyone thought we were crazy buying funds and land and anything we could turn a profit on when everything went back to status quo.

 

I found out then that you and I are odd ducks out because the "average" person can't conceive of free funds as you and I mean when I say play money. That being money that has no bearing on our income in retirement or is committed elsewhere as we are now. And no we don't need to take a profit now in anticipation of Tesla going bankrupt. I believe it will be over $300 by 2020 after he pulls off, late or not, the Model 3 debut and gets margins even higher with battery production ramping higher according to demand.

 

I do have about a third of what I started Tesla out with in 2010 on IPO. So I can go small on any game changers trying to emerge during this. But it really is earmarked for new decks on the new house.

 

We can build that back up in a few months if we decide an opportunity is just too good to pass up.

 

The last time folks looked at us like we were crazy buying when others were all but jumping out of windows and selling anything they could.

 

Tesla started in 2008. It debuted right in the beginning of the almost depression.

 

I was surprised to see the Brexit succeed. I think everyone was.

 

Thanks for again getting attention where I may have been late without the heads up.

RV/Derek
http://www.rvroadie.com Email on the bottom of my website page.
Retired AF 1971-1998


When you see a worthy man, endeavor to emulate him. When you see an unworthy man, look inside yourself. - Confucius

 

“Those who can make you believe absurdities, can make you commit atrocities.” ... Voltaire

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Yup, that is what I am doing....in process over the next week or so. I've just been waiting for something to happen. I figured a major terror event might do it. Markets are kinda fickle about that stuff. But the EU event is actually more significant because of the heavy financial aspects.

 

Then I'll harvest profits and recreate the (extra) cash reserve....just like you do. You just have to be careful what you buy meets your overall long term plan, and not try to get greedy.

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Yup, we have set numbers in place with our finantial person that when reached we get in contact and have a look. When the drops another 400 points we will be having a chat.

Dave & Diane

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In most volatile markets, those who are well diversified and just ride things out fair much better than those who join in the rush to sell. Most financial people in this part of the world agree that the current panic is creating some buying opportunities, but there are also some real risks. When you try to time the market you can make a lot of money very quickly, but what you make is lost by some other investor so there is a lot of risk involved.

Turbulence and Uncertainty for the Market After ‘Brexit

 

 

LONDON — No one really knows what happens now. The collective imagination leads to dark places.

Good travelin !...............Kirk

Full-time 11+ years...... Now seasonal travelers.
Kirk & Pam's Great RV Adventure

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With all due respect, personally we weren't shocked at all by the vote, albeit we wondered with more than 30% not even having been born in the UK and living in the larger population areas how they'd swing! Our biggest concern for family still there was "are they too deep into Europe now after so many years"? Thankfully we had the conviction to emigrate with young children in tow for a better future in Canada more than two decades ago. One thing that is a huge positive in all this is that now, they can set "their own" laws, border controls and taxes again without the EU influence. If things turn out well for the UK, I can see many other countries in about 2 years or so maybe doing the same voting options. As for Scotland wanting to separate, just as with Quebec here = they want to but they want to "cherry pick" keeping certain things belonging to the whole of their current country. As always folks need to remember "be careful what you wish for" and "the grass isn't always greener on the other side".

 

There is so much disillusion in the UK for the longest time by those born and bred there going back generations. Most farmers and other industries, but that is our family heritage never wanted them to join back in the early 70's. Hope is now that they can put the GREAT back into Great Britain. Whilst my immediate family isn't living there anymore, it would still be nice for us to go back to the good old days when we were very very proud to be British. Personally we and our family even still over there haven't felt that way for more years than we care to remember. You really do have to have lived it the past half century and longer to know where the UK folks are coming from in how they feel about how their mighty empire has crumbled over the past many years going in most eyes from bad to worse and worse again.

 

From an investing perspective, and we are very active in that regards, but still see ourselves as pretty dumb about investing. One thing that evidences to us each and every time when uncertainty prevails over many decades I've found = initially folks go to cash in "preservation mode", and then when the downturn or "stagnation" continues over several weeks/months they get itchy about their monies not growing with such low interest rates in recent years. They then start to turn to precious metals/miners = evidenced even as recently as November 2015 pulling out of the market (ourselves included) and Gold hitting over $1200 (the first big barrier) several weeks back, to now with BREXIT breaking well into the $1300's.

 

As with all things "it will heal", but whether that is within a few weeks or one or two years who knows? FWIW, and as always to each their own decision they can live with: We are looking at these pullbacks in the market each and every time as a great opportunity to purchase more index based investments for a spread risk generally, but never do we go all in during one "tranche", as whilst the charts might tell me that we are curling back up and even with conviction, my crystal balls always somewhat fuzzy! Remember always for every person buying that thinks they are right, on the opposite side there is a seller that equally thinks he is right = that's what creates the markets. The key we've found is not to be greedy on returns or betting the farm all in, be well diversified and most importantly of all know when to sit on our hands (stay on the sidelines), until evidence proves we likely aren't catching a falling knife any more. Sure we miss opportunities often, but they are like a No 14 bus, another comes along soon afterwards. Patience is key here for us, and not chasing on price, to have those that got in earlier turn around and sell for profit and fill the gap back down again.

 

As we always say, Just our humble opinion and what's worked for us, and never to be construed as investment advise to anyone else :)

 

Happy Travels and may all our money trees flourish in all climates.

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With all due respect, personally we weren't shocked at all by the vote, albeit we wondered with more than 30% not even having been born in the UK and living in the larger population areas how they'd swing! Our biggest concern for family still there was "are they too deep into Europe now after so many years"? Thankfully we had the conviction to emigrate with young children in tow for a better future in Canada more than two decades ago. One thing that is a huge positive in all this is that now, they can set "their own" laws, border controls and taxes again without the EU influence. If things turn out well for the UK, I can see many other countries in about 2 years or so maybe doing the same voting options. As for Scotland wanting to separate, just as with Quebec here = they want to but they want to "cherry pick" keeping certain things belonging to the whole of their current country. As always folks need to remember "be careful what you wish for" and "the grass isn't always greener on the other side".

I suspect that most folks in the US were like me in that they had no idea just how much the EU controlled in member countries lives. I knew of the monetary aspects and of the improved trade conditions, but had no idea that it went so far as immigration and other social issues. After reading more detailed explanations of the things that were subject to the EU control, it left me wondering how it was supported for so long. I also had no idea that the origin was in the 1950's as an effort to prevent future wars by economic ties. It seems it was an admirable idea that just grew and grew until it became a monster! I don't believe that I had significant awareness of it until the modifications that took place in 1996, and even then my knowledge of it was pretty superficial.

Good travelin !...............Kirk

Full-time 11+ years...... Now seasonal travelers.
Kirk & Pam's Great RV Adventure

            images?q=tbn:ANd9GcQqFswi_bvvojaMvanTWAI

 

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It might be good to remember that back about the 1780's, after we won our independence from England, and began to form the United States, we went through growing pains. Things like states rights, a single currency, banking systems, etc. Back in the late 1700's and early 1800's some or many of the states did not want intrusion from a central government. We even had a huge civil war in the 1860's about states rights that really disrupted the United States for many years. Yes, the Civil War was about slavery, but a huge part was the north telling the south to dismantle their whole economy, which was based on the cheap labor from slavery.

 

In some ways Europe it trying to be like the United States is. Freedom of movement of people and goods without border restrictions. Of course if I lived in England I would probably object to having immigration policy dictated by a central European Government. There has to be some sort of compromise to allow free borders and movement of goods.

 

All in all it is an extremely difficult issue with no easy answers. I can easily see the validity in arguments for the UK to stay as well as to leave the EU. I sure don't know just how I would vote if I was a UK citizen. I'm really glad I don't have to decide.

Al & Sharon
2006 Winnebago Journey 36G 
2020 Chevy Colorado Toad
San Antonio, TX

http://downtheroadaroundthebend.blogspot.com/

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Folks the big changes are going to affect our economy too, but if you are not familiar with the engineering and certifications standards like our own UL and IEEE and ISO as well as the EU standards that the UK accepted are now in limbo. For example one friend with a world wide dental implant biz is facing a change from European Union standards back to British standards which may be a wash or may be new hoops to jump through. And that is only the beginning. So all products going over the pond may face dual and conflicting standards. And products coming here may not be up to old standards.

 

That's just the tip of the iceberg.

RV/Derek
http://www.rvroadie.com Email on the bottom of my website page.
Retired AF 1971-1998


When you see a worthy man, endeavor to emulate him. When you see an unworthy man, look inside yourself. - Confucius

 

“Those who can make you believe absurdities, can make you commit atrocities.” ... Voltaire

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