Market turmoil: Will you stop spending on bike gear?

[bikeridah]

Even though losses are unrealized (unless you decided to sell:eek:), will you stop or delay spending on bike gear, or any other discretionary spending for that matter?

[FlashUNC]

No.

[zap]

No.

[drewellison]

No.

My spending on bike gear will continue as I have funds for the endeavor (which is determined by how fast I sell my extra stuff).

[Lewis Moon]

Cross is coming...so no.
http://www.lerouleurlent.net/wp-content/uploads/2014/11/IMG_3121.jpg

[velomonkey]

surely you jest.

[SlackMan]

No.

And as an aside, for the purpose of measuring wealth, losses are losses regardless whether you realize them or not. They still represent a reduction in wealth. Indeed, as I posted in the other market-related thread, it is a good time to harvest some tax losses by realizing the losses. I realized ~$30K in losses today that I can use to offset gains or (over time) other taxable income. It's one of the few investing strategies that is a total no-brainer.

[ceolwulf]

I feel it is my civic duty to buy more bike parts in order to stimulate the economy.

[Lewis Moon]

I feel it is my civic duty to buy more bike parts in order to stimulate the economy.

You are truly a civic minded individual. Always putting community before self. Bravo (golf clap).

[eBAUMANN]

I feel it is my civic duty to buy more bike parts in order to stimulate the economy.

:banana:

[binxnyrwarrsoul]

No.

[fuzzalow]

No I will not stop buying biking gear as a consequence of capital markets volatility.

The drop in markets only influences the perception of wealth which effects possible discretionary spending but typically not at the relatively low expense of bike & bike parts.

I find an assertion made earlier that realizing capital loses is a useful thing. No doubt it is but I find something slightly out of sync with selling into a firesale in August as being unnecessarily chaotic. I thought using loses to offset ordinary income was not worth the bother because the cap on the allowable amount was basically useless. Dunno, I'll check with the accountant.

[SlackMan]

No I will not stop buying biking gear as a consequence of capital markets volatility.

The drop in markets only influences the perception of wealth which effects possible discretionary spending but typically not at the relatively low expense of bike & bike parts.

I find an assertion made earlier that realizing capital loses is a useful thing. No doubt it is but I find something slightly out of sync with selling into a firesale in August as being unnecessarily chaotic. I thought using loses to offset ordinary income was not worth the bother because the cap on the allowable amount was basically useless. Dunno, I'll check with the accountant.

There is no limit on losses when offset against other investment gains. When offset against other taxable income, the max is $3,000 per year for a couple. If you assumed a tax rate of about one-third, you would save $1,000 in taxes by harvesting $3,000 in losses.

To be clear, I do not advise selling out of a position selling at a loss and moving to cash. Instead, sell out at a loss and then immediately move to something highly correlated (but not identical). In this way, you maintain your exposure for when the market rebounds, but you walk away $1,000 richer. For some people, maybe the $1,000 is not worth the hassle, but earning $1,000 after tax for about 10 minutes work (includes selling and additional tax prep time) is a pretty good return on time.

[saab2000]

The only reason I would buy less bike stuff at a volatile time would be to take that money and invest it so I can buy even more bike stuff later on.

I just shot a bit of cash over to my account and plan to buy a few shares of an ETF I own.

I bought heavily during the down years of 2008/2009 and am glad I did. This isn't like that but the idea remains the same: buy low, sell high. I'm in this for the long haul and continuing to accrue shares and buying a dip seems smart to me.

Of course, timing the dip is foolish, and I get that, but I can still pretend. I'm going to buy shares one way or another so I may as well try to get a tad more value when it's clear the market is down.

I'm not afraid.

[Uncle Jam's Army]

surely you jest.

No, and don't call me Shirley.

[fuzzalow]

To be clear, I do not advise selling out of a position selling at a loss and moving to cash. Instead, sell out at a loss and then immediately move to something highly correlated (but not identical). In this way, you maintain your exposure for when the market rebounds, but you walk away $1,000 richer. For some people, maybe the $1,000 is not worth the hassle, but earning $1,000 after tax for about 10 minutes work (includes selling and additional tax prep time) is a pretty good return on time.

No, I get what you're saying clearly. But the added part about both the tax loss and the portfolio rebalancing was not stated in the earlier post. And what you are doing here is outside of the type of motivation had and talked about here when the markets go all topsy-turvy.

No way man, any nickel anybody doesn't have to legally pay the governments in taxes is perfectly acceptable. The tax code isn't to be looked at as to what is allowed, it is to be looked at as to how to do it. That's how the game is played.

[Tin Turtle]

1) I do not make emotional, instant, knee jerk decisions with my portfolio.

2) I do make emotional, instant, knee jerk decisions with regards to bicycle equipment.

It all works out.

[oldpotatoe]

Even though losses are unrealized (unless you decided to sell:eek:), will you stop or delay spending on bike gear, or any other discretionary spending for that matter?

Nope, don't depend on any $ from investments now.

[dpk501]

Yes I will stop spending on bike gear. I'm going to need the cash to snatch up more stocks!!!!

[charliedid]

Even though losses are unrealized (unless you decided to sell:eek:), will you stop or delay spending on bike gear, or any other discretionary spending for that matter?

What?

[jlwdm]

I have not purchased a frame in 6 1/2 years but I bought one today. And I don't even know what I am going to do with it.

Jeff

[makoti]

Are you looking to sell?

[Frankwurst]

Even though losses are unrealized (unless you decided to sell:eek:), will you stop or delay spending on bike gear, or any other discretionary spending for that matter?

Is this a trick question? :beer::D

[likebikes]

Unfortunately yes, layoffs and hour cutbacks are around the corner and bike parts are just about the only liquid assets I have at the moment.

[makoti]

Unfortunately yes, layoffs and hour cutbacks are around the corner and bike parts are just about the only liquid assets I have at the moment.

Ouch. Good luck to you.