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Probably the only real way to go is index funds with a long time frame. And hope the global financial system is stable.
The United States stock markets are driven mainly by the growth and profits of United States corporations. Most of the innovation is happening in this country alone.
The "global" financial system is irrelevant and makes no difference at all. The world is actually much less global (whatever that means) than people are led to believe.
All the previous market downturns, I was too lazy and neglectful to pull my retirement out of stocks, and then I kicked myself afterwards. But we did it today. Moved everything (which had all been in a very broad stock index fund) into money market. This is the longest bull market we've ever seen, and I don't see any justification for it.
Now I have to figure out where to invest the money in anticipation of a downturn, that will allow me to jump back into stocks 'when there's blood in the streets'. Yes, I'm trying to time the market.
Very smart move. I took mine out after the last failing, payed off my home and did not look back.
The only justification is that the markets are like wild west again. Prices for basic commodities are rising again and will put pressure on the market. The system operates as house of cards, which makes the fall that much harder.
Whether agreeing or not on OP's decision to sell all stocks in anticipation of a correction what is a reasonable strategy for a nervous investor for getting back into the market assuming that the intent is to eventually be fully invested again?
Whether agreeing or not on OP's decision to sell all stocks in anticipation of a correction what is a reasonable strategy for a nervous investor for getting back into the market assuming that the intent is to eventually be fully invested again?
Trying to time a market correction is a crapshoot.
But some people will always believe they can do it successfully. This is called the illusion of the market.
Trying to time a market correction is a crapshoot.
But some people will always believe they can do it successfully. This is called the illusion of the market.
That’s the way it always will be.
Agreed, but OP has already cashed out. What is your best advice to him knowing that he is nervous and is not going to just jump back in? Wait for X% pullback from his selling price and reinvest the entire amount? Reinvest a percentage with every Y% fall? Do calendar scheduled buys ignoring price? We know his nervousness is going to fight him with every move so he needs a solid plan for getting invested again. What's a good plan for him or someone like him?
Disclosure: I am fully invested at my allocation levels but, judging from this and other posts, there seems to be quite a few others who are sitting on large piles of cash in fear of a crash.
Disclosure: I am fully invested at my allocation levels but, judging from this and other posts, there seems to be quite a few others who are sitting on large piles of cash in fear of a crash.
The stock market is always more likely to keep rallying than to crash. I have no idea where people get this notion that the markets are going to crash any day now.
Maybe it comes from “doomsday” influenced thinking. Who knows?
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