Other than retirement, I currently have over 50% of my assets in Cash........

TheNinja said:
.....but I'm too worried about a market crash to put a lot of it into stocks right now. I just feel there has to be a correction in the next 6 months.

So what should I do other than lose money getting .05% in a stupid savings account. I'm looking for relatively safe at this point until the stock market dips and I can get back in.
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I have been too cash heavy this year. As many people say we have had a K shape recovery where some are doing much better and some are doing worse. I thought at some point 11 or so million people out of work is going to cause the markets to take a hit in the US. But the Fed has created so much liquidity it hasn't been a problem yet in the US. IMO we need a new covid relief bill to provide some fiscal stimulus. The Fed cannot do it all on its own. So hopefully by the end of January we get something.

I see a number of analysts predicting the S&P 500 being from 3700 to 4000 next year. I have to think that is pretty rosy where vaccines are smoothly distributed without much of a hiccup and we are not dealing with Covid at the end of the 2nd quarter. Who knows if that will really be the case.

Those who are doing well in this economy have increased their savings rate and when things open up they will have a good amount to spend. But will that compensate for the people who have spent their savings where many will have to learn new skills since their jobs will no longer be there after being out of work for 6 months or more. They won't have much money to spend.

And the third world....will they recover from Covid and their economies being growing where they will be buying out shit? Will they be getting vaccines too? My guess is it won't be as easy to distribute and their economies will suffer longer.

Who knows.
 
jeffk said:
I have been too cash heavy this year. As many people say we have had a K shape recovery where some are doing much better and some are doing worse. I thought at some point 11 or so million people out of work is going to cause the markets to take a hit in the US. But the Fed has created so much liquidity it hasn't been a problem yet in the US. IMO we need a new covid relief bill to provide some fiscal stimulus. The Fed cannot do it all on its own. So hopefully by the end of January we get something.

I see a number of analysts predicting the S&P 500 being from 3700 to 4000 next year. I have to think that is pretty rosy where vaccines are smoothly distributed without much of a hiccup and we are not dealing with Covid at the end of the 2nd quarter. Who knows if that will really be the case.

Those who are doing well in this economy have increased their savings rate and when things open up they will have a good amount to spend. But will that compensate for the people who have spent their savings where many will have to learn new skills since their jobs will no longer be there after being out of work for 6 months or more. They won't have much money to spend.

And the third world....will they recover from Covid and their economies being growing where they will be buying out shit? Will they be getting vaccines too? My guess is it won't be as easy to distribute and their economies will suffer longer.

Who knows.
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The US will spend billions on aid to foreign countries giving out free vaccines, while we’ll pay out the ass for it if at all
 
I am thinking things will be rocking and I waiting for a dip and buying for the long term a mix of

SPY (S&P index),
AKREX (mutual fund),
VOOV (S&P 500 Value index etf)
T Rowe Price Blue Chip Growth (TRBCX mutual fund)
 
Woldog said:
Keep all your money under your mattress and PM me your address. I'll check on it every day to make sure it's still there for you.
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Deal!! Can I pay you a small fee as an incentive for being honest?
 
Oblivian said:
It's actually the absolute worst time to buy a house in my market. The low interest rate has created a large surplus of buyers. Home prices are ridiculously inflated and we are probably looking at a bubble. Most people buying will be upside down for a few years. Interest rates will be higher as well hurting their ability to refi. It's not looking good.
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I think the same by me. Sure, interest rates are low but housing prices are just insane. And people are starting to leave the area I'm in too b/c housing is too expensive and companies are realizing people can work remotely for the foreseable future...maybe forever. No incentive to pay ridiculous housing prices and California state tax if you can work from a different area or a different state.
 
Woldog said:
No need to pay me man, its rewarding enough just knowing I'll be doing a good deed.
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You are a good man, sir! Look for my address via PM. They keys to my car are in the key bowl too if you need to run an errand or 2.
 
TheNinja said:
I think the same by me. Sure, interest rates are low but housing prices are just insane. And people are starting to leave the area I'm in too b/c housing is too expensive and companies are realizing people can work remotely for the foreseable future...maybe forever. No incentive to pay ridiculous housing prices and California state tax if you can work from a different area or a different state.
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The opposite in Australia. Right now houses are cheap as shit and the interest rates are low af.
 
TheNinja said:
I think the same by me. Sure, interest rates are low but housing prices are just insane. And people are starting to leave the area I'm in too b/c housing is too expensive and companies are realizing people can work remotely for the foreseable future...maybe forever. No incentive to pay ridiculous housing prices and California state tax if you can work from a different area or a different state.
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I think the more likely result is people working in the office part time and from home part time. This will encourage people to spend longer on public transport in exchange for more space.
 
UKBBC said:
Buy Rolex if you can.

unlikely to lose money, if you can access any hot models from the authorised dealer you will make immediate bank.
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By selling to an uninformed speculator like himself?
 
HeffDoesWant said:
I think the more likely result is people working in the office part time and from home part time. This will encourage people to spend longer on public transport in exchange for more space.
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That's actually a really great point. In my area people are leaving the cities and buying/renting in suburbs where they can get a bigger house, a yard, more space for kids, etc.......but the tradeoff is much longer commute into the city. But like you said, if you only go in 2x a week vs the old way of going in 4-5x a week it's worth it.

So housing prices in the cities are getting crushes but the houses 45-75 miles out are going up like crazy.
 
Invest in audio equipment and become a YouTube rapper educatin these hoes about your life on the streets of sherdog
 
I've been thinking about this a lot. I'm retiring in April, my 401k is in mutual funds, and I'm still at around a 80% stocks/20% bonds split. I feel like I should move most of it into something safe, but my return for the past 10 years is 21%.

I have no debt, and ~$1.8M. Hmmm..... that should be enough to live on. We don't have an expensive lifestyle.
 
AtomicPanther said:
I've been thinking about this a lot. I'm retiring in April, my 401k is in mutual funds, and I'm still at around a 80% stocks/20% bonds split. I feel like I should move most of it into something safe, but my return for the past 10 years is 21%.

I have no debt, and ~$1.8M. Hmmm..... that should be enough to live on. We don't have an expensive lifestyle.
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That's pretty aggressive for your stage of life.

a couple of years worth of cash to cover living expenses, another couple in bonds or low volatility investments will help you ride out any volatility. You don't want to be redeeming stocks in a downturn to cover expenses.

In short, Why risk something you need for something you don't.
 
AtomicPanther said:
I've been thinking about this a lot. I'm retiring in April, my 401k is in mutual funds, and I'm still at around a 80% stocks/20% bonds split. I feel like I should move most of it into something safe, but my return for the past 10 years is 21%.

I have no debt, and ~$1.8M. Hmmm..... that should be enough to live on. We don't have an expensive lifestyle.
Click to expand...
HeffDoesWant said:
That's pretty aggressive for your stage of life.

a couple of years worth of cash to cover living expenses, another couple in bonds or low volatility investments will help you ride out any volatility. You don't want to be redeeming stocks in a downturn to cover expenses.

In short, Why risk something you need for something you don't.
Click to expand...

Agree with HeffDoesWant in that it is pretty agressive, especially given the gains we've had the past few years. But then again looks like you have quite a bit of money there and can still ride out some ups and downs. I hate to miss out on gains but in your position I'd go at least 50/50 stocks vs bonds right now. But I'm very risk averse :) - I guess it really depends on how long you plan to live yet ;)
 
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