So the stock market insanity. I mean i can't explain it at all. Can you? I mean Singuy's explanation that we aren't in a real recession and people are parking money somewhere because Bonds and CDs are paying nothing makes sense. Everything I've read saying it's going up because the fed is inflating asset prices by printing more money. QE is real.
This stock market has skyrocketed our investments. Our retirement accounts are $1.15M today. Our taxable investments are up to around $650k. I don't know whether to hope or panic if we manage to pass $2M in cash assets this year.
But it seems surreal. Like all of this is due to a bubble. That the valuations of these stock assets aren't real. I'm not sure what is real. I do know that cash appears to be a bad place to be sitting so I've been dumping more and more money into the stock market.
Right now so many changes. I'll post more as we get close to March 2021 but DH is changing jobs. But how do we balance risk with reward?
What are you doing?
Stock Market Insanity
September 2nd, 2020 at 12:41 am
September 2nd, 2020 at 12:59 pm 1599051563
You SHOULD have an asset allocation for your portfolio that you adhere to. When your percentages get off from your desired allocation, you should rebalance to get back to where you want to be.
Do you have an asset allocation that you use to make your investing decisions?
September 2nd, 2020 at 03:10 pm 1599059417
I believe that there is also unannounced market manipulation in play, and the ‘tool’ being used is covid. When the market drops, there is always an announcement of either a promising new treatment or a promising vaccine. The market then goes up. The Dow never gets too far below 27,500 or above 29,000. But people are making money within those ups and downs. The ‘little people’ are getting played.
Because there are manipulating factors, I think this is a very risky time to be in the market. You can’t judge stocks based on the fundamentals of the company or the economy,
I moved @1/3 of my portfolio out already. I plan to move more in early October. I am OK if I miss a big rise, but based on what I think is going to happen - big drop - I can’t ignore myself!
I will decide whether/when to go back in after the election,
I am retired, and not contributing any more to retirement accounts. Those building their nest egg can ride the drop out, but I am in a different position. I
September 3rd, 2020 at 06:06 pm 1599156366
I think this is a very risky time in the market. But was convinced that leaving money invested for the next 15-30 years might as well go for it. I'm not sure when the bottom will drop but we need to ride out the drop i bet.
September 3rd, 2020 at 08:35 pm 1599165324