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.
I'm getting more and more nervous about the economy (was nervous since the beginning of these year even when stocks were only going up) and I'm trying to figure out what to do with my investments. I have a couple of 401ks, a bunch in Ameritrade, and a bunch in a cash account. I'm trying to figure out what to do with 401k invesments. I have a chunk in bond funds and everything that's going in is spread between an international fund, a balanced fund, a couple of large cap funds, a tiny percent in a small cap fund, and the rest in an index fund. I feel like I need to start allocating my money elsewhere and possibly moving some of my money that's already in the funds to different ones or possibly to money market accounts. I just don't want to lose what I have in there. Going through the Internet bubble in 2000 was painful enough!
Is anyone else feeling bearish about the market going forward over the next couple of years? For those of you who are, how are you investing your money?
I'm getting more and more nervous about the economy (was nervous since the beginning of these year even when stocks were only going up) and I'm trying to figure out what to do with my investments. I have a couple of 401ks, a bunch in Ameritrade, and a bunch in a cash account. I'm trying to figure out what to do with 401k invesments. I have a chunk in bond funds and everything that's going in is spread between an international fund, a balanced fund, a couple of large cap funds, a tiny percent in a small cap fund, and the rest in an index fund. I feel like I need to start allocating my money elsewhere and possibly moving some of my money that's already in the funds to different ones or possibly to money market accounts. I just don't want to lose what I have in there. Going through the Internet bubble in 2000 was painful enough!
Is anyone else feeling bearish about the market going forward over the next couple of years? For those of you who are, how are you investing your money?
How many years till you cash out of 401k? If it is more than 5 years. It should be buying time when stocks/mutual funds are low.This allows you to buy more shares. Usually it is not about short term when investing for retirement. I would not worry.Most people move to bonds when there is a slow down.
I'm getting more and more nervous about the economy (was nervous since the beginning of these year even when stocks were only going up) and I'm trying to figure out what to do with my investments. I have a couple of 401ks, a bunch in Ameritrade, and a bunch in a cash account. I'm trying to figure out what to do with 401k invesments. I have a chunk in bond funds and everything that's going in is spread between an international fund, a balanced fund, a couple of large cap funds, a tiny percent in a small cap fund, and the rest in an index fund. I feel like I need to start allocating my money elsewhere and possibly moving some of my money that's already in the funds to different ones or possibly to money market accounts. I just don't want to lose what I have in there. Going through the Internet bubble in 2000 was painful enough!
Is anyone else feeling bearish about the market going forward over the next couple of years? For those of you who are, how are you investing your money?
You have diversified your diversified holdings by contributing to so many different kinds of 401k funds at one time. You can pretty much expect your portfolio to thus follow the market as a whole (for better or for worse).
My opinion is thus that you ought to focus upon one fund for your 401ks. The one I would pick would be perhaps different from other investors - I would go for an area where you will continue to see the most significant growth mid and long term despite whatever short-term losses you may be seeing (or have seen). There are historical trends for who does well during recessions and even depressions - you should do some research into this. Go with what your research reveals. For what it's worth I've always felt comfortable with small cap stocks and small cap funds and have done well by them since I started investing. I believe that compared to the large companies, there's more potential opportunity for massive growth in them during any economic cycle.
A program you might want to consider watching or recording on your DVR is Mad Money - it's interesting and sometimes you get insights regarding what's happening in different industries.
I'm getting more and more nervous about the economy (was nervous since the beginning of these year even when stocks were only going up) and I'm trying to figure out what to do with my investments. I have a couple of 401ks, a bunch in Ameritrade, and a bunch in a cash account. I'm trying to figure out what to do with 401k invesments. I have a chunk in bond funds and everything that's going in is spread between an international fund, a balanced fund, a couple of large cap funds, a tiny percent in a small cap fund, and the rest in an index fund. I feel like I need to start allocating my money elsewhere and possibly moving some of my money that's already in the funds to different ones or possibly to money market accounts. I just don't want to lose what I have in there. Going through the Internet bubble in 2000 was painful enough!
Is anyone else feeling bearish about the market going forward over the next couple of years? For those of you who are, how are you investing your money?
Although the economy is having, and will continue to have, some difficult times, I'm not concerned about long term stock market performance. However, your investment allocation looks like a mess to me.
Why not just put your money in a few funds with varied objectives? Since you obviously worry a bit, why not set up a significant percentage of your money in a money market account fund, or securities of deposit? Take the remainder and put it in a couple of stock mutual funds, growth or value, national or international, and then forget about the daily fluctuations.
Although the economy is having, and will continue to have, some difficult times, I'm not concerned about long term stock market performance. However, your investment allocation looks like a mess to me.
Why not just put your money in a few funds with varied objectives? Since you obviously worry a bit, why not set up a significant percentage of your money in a money market account fund, or securities of deposit? Take the remainder and put it in a couple of stock mutual funds, growth or value, national or international, and then forget about the daily fluctuations.
I think maybe I wasn't clear in my first post. I only talked about my allocations in one of my three 401k accounts and didn't mention that I have a majority of my investments elsewhere. And I'm not sure that what you're recommending is different than what I'm already doing? My money is already in stock mutual funds, both growth and value and both national and international in the 401k that I mentioned in my first post. The only other thing that I have money in that you didn't recommend is bonds. (I do also have a big chunk in a high-yield savings account which I didn't mention earlier.)
I don't pay attention to daily fluctuations. I sometimes go for months without even noticing what's happening in the stock market. A majority of my investments have been in the same place for YEARS. I could care less what happens over the course of a few days or a couple of months. I do care what happens over the course of a year or more.
The main point of my post was to find out if there was something different that financially-savvy people normally do to prepare if they think that a bearish market is forthcoming. I know not everyone believes there will be a recession next year but I believe there will be one (I have many reasons for this but don't want to debate about that one here). I was thinking I could change the allocations in my 401k--put more/less towards bonds, international, small cap, etc. My goal for right now is to go with the safer bets, not the high risk ones and I was wondering what most people do to buffer themselves in uncertain times. Maybe I shouldn't have used my 401k as an example (since their long-term investments) but I was looking at my allocations there today and was considering making some changes. I figured that I could use any advice here to possibly make changes to my non 401k investments, as well.
The main point of my post was to find out if there was something different that financially-savvy people normally do to prepare if they think that a bearish market is forthcoming. I know not everyone believes there will be a recession next year but I believe there will be one (I have many reasons for this but don't want to debate about that one here). I was thinking I could change the allocations in my 401k--put more/less towards bonds, international, small cap, etc. My goal for right now is to go with the safer bets, not the high risk ones and I was wondering what most people do to buffer themselves in uncertain times. Maybe I shouldn't have used my 401k as an example (since their long-term investments) but I was looking at my allocations there today and was considering making some changes. I figured that I could use any advice here to possibly make changes to my non 401k investments, as well.
OK, that is a lot clearer.
The response I would provide to this would be to avoid all stock market investments if you believe that a bearish market is coming soon. International stocks tend to track US stocks in the aggregate, so I would stay out of those too. Some folks play the Option Market in anticipation of a downturn, but this is for folks who like short term action.
As far as bonds go, you have to believe that inflation is going to decline to really have much of an argument to favor bonds over money market investments.
FWIW, I don't expect much from stocks over the next 5-10 years.
I dont think they'll significantly outperform money market funds or cash, at 4 or 5% (certainly not a smooth 10% a year), and you've always got the risk of big scary declines (20-30-40%). You have to get away from all the wall street sales talk and cheerleading to make level headed investment decisions.
"The Money Game" is a great look at how wall street and the investment community really works. It was written about the market of the 60's, but everything applies just as well today.
I tend to make investment choices the way I'd buy a car, research a vacation, anything else. Hopefully with sound logic and reasoning.
Long term, stocks do well, but people do lose money (getting in when everyone else is getting in, bubble 2000). There's a famous Business Week cover story from 1979.."The Death of Equities". People back then didnt even think wall street would survive in the 80's. Everyone was putting their retirement money into gold and diamonds back then. Things can and do change.
FWIW, I don't expect much from stocks over the next 5-10 years.
I dont think they'll significantly outperform money market funds or cash, at 4 or 5% (certainly not a smooth 10% a year), and you've always got the risk of big scary declines (20-30-40%). You have to get away from all the wall street sales talk and cheerleading to make level headed investment decisions.
"The Money Game" is a great look at how wall street and the investment community really works. It was written about the market of the 60's, but everything applies just as well today.
I tend to make investment choices the way I'd buy a car, research a vacation, anything else. Hopefully with sound logic and reasoning.
Long term, stocks do well, but people do lose money (getting in when everyone else is getting in, bubble 2000). There's a famous Business Week cover story from 1979.."The Death of Equities". People back then didnt even think wall street would survive in the 80's. Everyone was putting their retirement money into gold and diamonds back then. Things can and do change.
I love that book. I also recommend "A Fool and his money: the odyssey of an average investor" This book is easier to read than "The Money Game" and just as informative. Read these books and you will never look at guys like Cramer and Stein the same way again. As for the stock market, it's been a bumpy ride lately. I love it though -- if only because I don't know how to do anything else.
I love that book. I also recommend "A Fool and his money: the odyssey of an average investor" This book is easier to read than "The Money Game" and just as informative. Read these books and you will never look at guys like Cramer and Stein the same way again. As for the stock market, it's been a bumpy ride lately. I love it though -- if only because I don't know how to do anything else.
"The Money Game" is brilliant, maybe one of the top 5 investment books I've ever read. It's eerie how similar the stock world was in the 60's, compared to the 90's. The chapter on accounting! All the companies no one has ever heard of now. The "3 Senior Sisters of Growth". Sound familiar to the "Four Horseman" a few years ago...Intel, Microsoft, Dell and Cisco?
That book saved me alot of money. Cramer, "Ben Stein"....you'll cringe at names like that. And all the CNBC "experts".
"Where Are the Customers Yachts" is a similar book (recently recommended by Warren Buffett).
I also follow Jim Rogers, Charlie Munger (just read Poor Charlie Almanack, 500+ pages of wisdom).
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.
