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How? If equities are overvalued and bonds are no good due to rate hikes and cash is no good to inflation.
Put it in a Balanced fund 40%fixed/60%equities and watch it go down less than a Growth fund?
Since the financial crisis, both bonds ( 5% to zero) and stocks rallied big time (s&p 666 - 4800) why ? because of the fed liquidity policy. The policy is reversing and both bonds and stocks are going down. The best bet right now is short-duration bonds.
This is how asset bubbles are destroyed. No place to hide. Real estate is the next big bubble to pop. CDs and high yield savings accounts start to look attractive in this environment lol
Are you holding on to your stocks in your retirement funds?
Since the financial crisis, both bonds ( 5% to zero) and stocks rallied big time (s&p 666 - 4800) why ? because of the fed liquidity policy. The policy is reversing and both bonds and stocks are going down. The best bet right now is short-duration bonds.
How far do you expect the market to go down? Then sideways for years?
Are you holding on to your stocks in your retirement funds?
Yep but I have a sizable cash position that I’m using to sell weekly puts against. I have no interest in deploying that cash right now other than in very small increments in select names. I also sell weekly covered calls against my long positions. Way out of the money so the premiums aren’t great but every little bit counts, especially in this type of market.
Yep but I have a sizable cash position that I’m using to sell weekly puts against. I have no interest in deploying that cash right now other than in very small increments in select names. I also sell weekly covered calls against my long positions. Way out of the money so the premiums aren’t great but every little bit counts, especially in this type of market.
The economy is still quite strong and companies are still making money. I'd think you'd want to have exposure to equities to offset cash losing to inflation.
The economy is still quite strong and companies are still making money. I'd think you'd want to have exposure to equities to offset cash losing to inflation.
So confusing.
S&P current PE ratio is in 2 sd. We are in a shrinking PE environment. your call
they are a better reflector of sentiment, which right now is crumbling. Bullish indicator
PE is not a great predictor because it is all about liquidity. That is the only truth in modern finance theory. Indicator shindicator are all narratives use to sell a story after the fact. Understand the fed's monetary operations and policies. Will save you a lot of money. BTW from the next quarter EPS will start to stagnate because financial engineering will be dead,
Let me guess, all your paper gains since 2020 are already wiped out? Well, I think the massive debt bubble is breaking so we are all going to have to deal with that. There is a lot more pain coming your way if you are bullish on stocks. Without the FED PUT and suppression of interest rates stock can only go DOWN and won't be able to recover.
Good Luck!
Are you predicting the demise of the stock market unless government props it up for eternity?
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