Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
There's no doubt that the market is doing great. However with the combination of overexuberance and volatile geopolitics, I am now switching my very aggressive portfolio to a conservative one.
This has nothing to do with "experts." I'm thrilled with the growth I've experienced since 2009, and am not willing to lose any profits. Although the market may continue to go up for a while, I am getting out of most of my equities and into a more stable asset allocation.
When prices drop significantly, I'll get back into equities again.
you could have been waiting 8 years . generally those who say they will wait give up far more than they get .
if they are to afraid to be in now , they rarely have the nerve to buy in when it looks like it is 1929 all over again and markets are plunging .
it is every investors vision to wait until things fall but the reality is they generally hurt their long term performance .
investors in 1982 felt the same way . p/e's had doubled in 2 years . markets were insanely over valued they said .
well who knew that was going to be the start of the greatest bull in history right out of left field .
I am a trader and am used to the fluctuations of the market, know how to read the charts, & have a high tolerance for risk. I've been trading & investing since I was 22 yo. I'm now 49.
I am not so much afraid of the market, as I respect the market. I am trying to ensure that the plans I have for my money will become realities. Like I mentioned, there's nothing in the charts that indicates danger. However, market cycles do not last forever, so I'm ready to take the money and run.
I bought large amounts of stocks when they were dirt cheap in mid-2009, when the market had stopped dropping . The gains have far exceeded my wildest expectations. So, I'm ready to use some of my profits to enjoy myself, and put some away for kids' college & retirement.
I'm not interested in being greedy and having to suffer a bit of whup azz.
I bought large amounts of stocks when they were dirt cheap in mid-2009, when the market had stopped dropping . The gains have far exceeded my wildest expectations. So, I'm ready to use some of my profits to enjoy myself, and put some away for kids' college & retirement.
Righteous!
No one has to stay fully invested if they don't want to. You well understand the trade-offs and have other goals to fund. Wish I had your wisdom and knowledge back in 2009.
Great advice. Modest moves for the win! 50% is a good asset allocation to assuage the jitters, and will make any big drops more palatable. Nothing wrong with backing off of an allocation that might feel too aggressive in the near term. If that allows someone to stay in the market and avoid panic, then it's a good strategy.
Thanks.
It's what I did myself at the end of last year. Took 3% from a fairly conservative stock fund and moved it into stable value. I will take another 1% or 2% at the end of this year or early next year from stocks and move to stable value.
I learned the hard way that making big moves almost always works against you. It sure did for me.
I don't think so. But if you do, then go 50% stocks and 50% investment grade bonds (short or intermediate term) and/or stable value funds.
You're still going to need to be 50% stocks if you want your money to grow. You can try to make the stock portion as low volatility as possible. In something like Vanguard Dividend Appreciation Index (if you have access to such a fund or other fund that tends to hold up better than average in market downturns).
Interest rates on bonds are just too low right now for people to rely on them as the only piece of their portfolios...unless they are really willing and able to live on the 3% or less interest earnings every year.
I bailed out on GWW yesterday before and now its up by 8%
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
