RetireJapan

Humility is a wonderful thing.

I'm sure it is. I wouldn't know.

Experience is also wonderful teacher.
I'll keep telling people on the hopes that it helps even one person.

So for all of you market timers out there I am informing you that I will be buying another swathe of stocks tomorrow in accordance with my DCA plan. Since every time I have bought stocks recently the market has crashed 10% the next day, this represents a unique opportunity to cash in on my misery and buy on the inevitable Monday sale .

eyeswideshut wrote: ↑Thu Apr 02, 2020 5:14 am So for all of you market timers out there I am informing you that I will be buying another swathe of stocks tomorrow in accordance with my DCA plan. Since every time I have bought stocks recently the market has crashed 10% the next day, this represents a unique opportunity to cash in on my misery and buy on the inevitable Monday sale .

Perfect, thanks!

Sold some of our VT at the beginning of March to lock in the tax loss, and have been slowly dripping it back in. So far so good. I'll take a look on Monday

eyeswideshut wrote: ↑Thu Apr 02, 2020 5:14 am So for all of you market timers out there I am informing you that I will be buying another swathe of stocks tomorrow in accordance with my DCA plan.

I took one for the team and bought US$5k worth. Immediately tanked 5%.

RetireJapan wrote: ↑Thu Apr 02, 2020 7:49 am

eyeswideshut wrote: ↑Thu Apr 02, 2020 5:14 am So for all of you market timers out there I am informing you that I will be buying another swathe of stocks tomorrow in accordance with my DCA plan. Since every time I have bought stocks recently the market has crashed 10% the next day, this represents a unique opportunity to cash in on my misery and buy on the inevitable Monday sale .

Perfect, thanks!

Sold some of our VT at the beginning of March to lock in the tax loss, and have been slowly dripping it back in. So far so good. I'll take a look on Monday

Does tax loss harvesting work in Japan? I have never looked into it as I am a pure buy-and-hold type. Can you use the offsets against regular income or only capital gains?

Does tax loss harvesting work in Japan? I have never looked into it as I am a pure buy-and-hold type. Can you use the offsets against regular income or only capital gains?

Yes and no. Tax losses harvested from your Japanese accounts will offset both capital gains and dividends (you can get a return of dividend tax paid within a tokutei account at the end of the year) but I don't think there is an equivalent to the US system of an additional offset of up to $3000 of earned income for unused losses. Tax losses harvested in your foreign accounts can offset capital gains (in either the foreign or Japanese accounts) but cannot be applied to dividends from either your Japanese or foreign accounts. Also Japan only allows a 3 year rollover of capital losses (in the US you can keep rolling over the unused loss until it's used up no matter how long it takes.)

(As you can see I have lots of experience with capital losses )

Despite the big chunks coming out of the US market recently I'm basically +/- 0 over the duration of time I've been investing(a bit over two years now).

I've done very little out of the usual. I allocated a bit more of the slush fund for investing, and I've just put money in to rebalance my allocations(50% developed/20% domestic/10% developing and 20% bonds). This meant buying a whole load of developed index funds(since they had been hit hardest), and those seem to have bounced right back up.

I've also been very lucky with my "play" money which is in single stocks. I only have two single stocks but AMD is up from 20->50 (150% increase) and MSFT is up 109->165(~50% increase). The wins on those and bonds have offset a lot of the losses on the other stuff.

I haven't sold anything and don't intend to unless I need to for rebalancing. I'm not sure exactly how long this will last but I intend to keep buying in a bit at a time and should come out pretty good with the eventual recovery.

I'm sorry to hear about the troubles that others whose businesses are affected or those out of accumulation phase are having.

TokyoWart wrote: ↑Wed Apr 08, 2020 3:04 am Yes and no. Tax losses harvested from your Japanese accounts will offset both capital gains and dividends (you can get a return of dividend tax paid within a tokutei account at the end of the year) but I don't think there is an equivalent to the US system of an additional offset of up to $3000 of earned income for unused losses. Tax losses harvested in your foreign accounts can offset capital gains (in either the foreign or Japanese accounts) but cannot be applied to dividends from either your Japanese or foreign accounts. Also Japan only allows a 3 year rollover of capital losses (in the US you can keep rolling over the unused loss until it's used up no matter how long it takes.)

(As you can see I have lots of experience with capital losses )

This is really useful info. As I have no intent to sell anytime soon and I don't buy dividend paying funds seems like tax-loss harvesting is not really applicable for me. But it is useful to know for when it is time to sell as you can potentially balance out some winners and losers and reduce taxes your taxes.

The US stock market recovery is boggling my mind.

Never before have I felt so tempted to time the market and just sell a big chunk of my developed nations stock to rebuy it after the next dip.

Trump is looking to reopen the country, deaths are going to go up again and I can't imagine that would stabilize the stockmarket. Am I crazy?

For all the other action in the last couple of years I've never felt as tempted to time the market as right now. Has anyone already pulled the trigger?

jcc wrote: ↑Mon Apr 20, 2020 2:46 am The US stock market recovery is boggling my mind.

Never before have I felt so tempted to time the market and just sell a big chunk of my developed nations stock to rebuy it after the next dip.

Trump is looking to reopen the country, deaths are going to go up again and I can't imagine that would stabilize the stockmarket. Am I crazy?

For all the other action in the last couple of years I've never felt as tempted to time the market as right now. Has anyone already pulled the trigger?

I don't know where the market will go next, but one interpretation of the market action is that money has become less valuable so more yen/dollars/euros are needed to purchase the slices of companies we call "stocks." I agree that it's counter-intuitive that markets are rising while the economic news worsens. I made the decision a long time ago to just stay invested so I'm either going down with the ship or riding the waves.