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I've been saying 2018 would be a good year, don't expect it to go straight up though. However, if I were you, I'd put all $100k into SPY. I currently have $294,000 between UPRO and SPY alone, so my money is where my mouth is! I'll probably add more as I close out my swing trade positions.
i also keep over 300k in voo and just let it ride . it is not really a part of my insight models .
i think if it did not have so much in pent up taxable gains i would have sold it and put the dough in the models , i let chase baby sit it and i got private client status and all the perks ..
However, if I were you, I'd put all $100k into SPY.
There's no point in the OP putting more money into SPY if it's going to leave him worried sick about a future market drop (or worse, bolting when the inevitable drop finally does come).
Bonds returning 3%? I can get that in a savings account for zero risk.
Than put some of that $100k into that savings account.
Quote:
As I said I expect at least 15% annually for the kind of risk we are talking about here. Most bonds are junk status if you take into account their near zero percent returns while undertaking moderate risk.
When have bonds ever yielded a 15% return in a low-interest environment? Heck, stocks don't consistently average a 15% rate of return! The historical average is closer to 7-9%.
If you can afford to take the risk of a significant and prolonged market decline, then go ahead and put it all in SPY (particularly if you have a long time horizon for this investment). But if you can't, don't let the desire for high returns tempt you into an unwise asset allocation.
There's no point in the OP putting more money into SPY if it's going to leave him worried sick about a future market drop (or worse, bolting when the inevitable drop finally does come).
That is the eternal dilemma with the stock market. Everybody gets excited after there's been major upsurge in value.
Unfortunately, too many people sit on the sidelines when the stock market is undervalued.
There's no point in the OP putting more money into SPY if it's going to leave him worried sick about a future market drop (or worse, bolting when the inevitable drop finally does come).
If SPY is too scary for the OP, than he shouldn't be in the stock market lol
We just cross 25k, now within a few days 26k seems on the horizon... This is truly eye popping. I have $100k liquid that I have to invest, I want to buy more S&P500 but this is making me really nervous. It is just going up way way too fast. Blink and it's up a .2 or .3%. Obviously this can't continue, then what exactly happens?
The forecast was 10% up for the year but it's already up almost 3% and it's only been 5 days.. WTF? There are 360 days left.
Asset allocation.
What are your goals for investing?? long range?
I'll simply repeat what others much smarter here have already said, if the ups and down are going to really freak you out then stay out of the market.
Unfortunately, too many people sit on the sidelines when the stock market is undervalued.
Which is understandable, as bear markets are really scary. Especially when they coincide with a recession, which they often do. "Hang onto all your cash for dear life!" feels really sensible when the market seems to be in a total freefall and you're also afraid you may lose your job.
But coupled with the irrational exuberance that people feel in a bull market, this of course can lead to buying high and selling low (the self-inflicted gunshot wound of the investing world).
And that's why I'd advise the OP, given his first post, to stop and think a bit before putting that entire $100k into SPY. If he was invested in 2007-2009 (or one of the earlier big bears, such as 1987 or 200-2001) and rode that out, that's one thing. But if he's not been through a serious bear market, he shouldn't allow greed to override his jitters lest he do himself a permanent financial injury. Yes, the market will probably come back after the next crash, eventually. But "probably" and "eventually" are qualifiers that have to be taken seriously! Investment risks are real.
Last edited by Aredhel; 01-05-2018 at 05:05 PM..
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This is truly eye popping. I have $100k liquid that I have to invest, I want to buy more S&P500 but this is making me really nervous. It is just going up way way too fast. Blink and it's up a .2 or .3%. Obviously this can't continue, then what exactly happens?
