How are your investments doing?

[DarkBlack]

Essentially, Canada just boinked an unruly pig on the nose. GM just lost 15% retail against every competitor in the country and Canada wants their billions in plant investment back. It's a great time to buy a Chevvy, because Canadians don't want them. Inventory costs are already eating GM alive, plus losing a huge market.

Canadians are developing some reasonable regulations for late stage capitalism. This one is a wakeup call for all international markets. The Canadian tariff law is a landmark in international trade regulation that will doubtless be copied my numerous nations around the world.

Their stock has actually rallied the past year. Up 36% year to date.

Maybe bail out this morning if you own it. Right now premarket is -0.26%. I don’t directly own any, other than indirectly through S&P index funds

 

[Snobdds]

Sooooooooo, what happens if you have your $140 stock..... either over night or over a weekend, bad news comes out and the next opening there is an order imbalance.... and it opens at $90? Even stop losses have risks. If you used a market stop, you got taken out at $90 and what happens if the stock bounces up and closes at $110... What if instead, you had a stop loss limit in at say, $120.... stock opens at $90. You aren't taken out because of the limit....and the stock proceeds to drop to $70.

Do you use market stops? Limit Stops?

Those are wild, made up numbers but I've seen stuff like that happen.

If you do actuary stuff then you are likely good with numbers.


Regarding bonds in retirement..... maybe some. What if instead, someone has a Roth account.... what if those assets are dropped into dividend paying stocks, REITS, Utilities, Corp Bonds.... things that create cash flow. This cash flow is now tax free with the ability to sell covered calls against (stock) positions (for more tax free cash flow), market gains (and losses because we all know, the market WILL and IS going to go down at some point in time, it's part of its DNA)

What if someone has a taxable portfolio? Now, bonds might have my interest. (though might take a sizable amount of funds) Put cash into (whatever state you live in) Municipal Bonds. Stagger them so the bonds (which pay semi-annual) can pay monthly. Now, you can have a portfolio of bonds, no risks of stocks (nor any growth from them) but the income is now tax free and potentially monthly.

(above are all my thoughts/opinions, not advice)

In 22 years of doing this, I have not once had an open position where a limit order failed to execute. I guess it's possible to have the very unique scenario you laid out happen, but mathematically it's very very very very very very low. If you are still not convinced, find me an example in the last 20 years where that happened. I can't think of one case and I am pretty queued into all of this. All exchanges have circuit breakers where they will just halt a stock if a stock changes too much in a given amount of time. I have seen stocks hit the circuit breakers.

Regarding your second thing...There are a lot of ways to configure retirement income. Having a divided paying strategy is not a bad way to go. Is it the only way, no. Most strategies are going to have you have low exposure to market risk at higher age brackets. Most are going to be dictated on how much principle you have and how much money is needed in retirement. Some people will still need high growth strategies due to low savings. Some people will have enough principle and can do a low risk bond strategies. It's very unique and specific to each person.