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Started By
Message
Would you enter the market now?
Posted on 4/19/23 at 10:56 am
Posted on 4/19/23 at 10:56 am
Reading through the possibly troll thread about "selling high and buying low" but I am curious about the board's position on this concept. I'm currently just stockpiling cash in Fidelity SPRXXX for modest monthly returns.
I was broke for a long time and finally am an in a position to put money away for the future and buy a house. It feels like both ideas are incredibly sketchy right now. I hear imminent housing crash and imminent housing boom happening simultaneously every other day, and I'm content to rent for another year or two to see what the truth actually is.
The more intriguing question is what to do with the investment money. It seems strange to plunge money in at what is very possibly the top of the market, especially when layoffs are still happening weekly and every company is tightening their spending. But I also know the mantra about not timing the market because it's a losing proposition.
Short version: If you had no current positions, would you readily buy into stocks and funds today?
I was broke for a long time and finally am an in a position to put money away for the future and buy a house. It feels like both ideas are incredibly sketchy right now. I hear imminent housing crash and imminent housing boom happening simultaneously every other day, and I'm content to rent for another year or two to see what the truth actually is.
The more intriguing question is what to do with the investment money. It seems strange to plunge money in at what is very possibly the top of the market, especially when layoffs are still happening weekly and every company is tightening their spending. But I also know the mantra about not timing the market because it's a losing proposition.
Short version: If you had no current positions, would you readily buy into stocks and funds today?
13
Posted on 4/19/23 at 11:07 am to Thundercles
Just googling, the average yield on that Fidelity account is ~2.53%? How liquid does this money need to be?
There's a myriad of options out there that yield nearly double what you're getting in that Fidelity account and is as safe or safer.
You can get a HYSA with PNC right now with 4%.
There's a myriad of options out there that yield nearly double what you're getting in that Fidelity account and is as safe or safer.
You can get a HYSA with PNC right now with 4%.
This post was edited on 4/19/23 at 11:13 am
Posted on 4/19/23 at 11:21 am to BenDover
SPRXX lately has been 4.5% fyi
Posted on 4/19/23 at 11:23 am to jsk020
Pretty dang solid. Hard to move out of there without taking on more risk.
Posted on 4/19/23 at 11:37 am to BenDover
Yeah it's been on a tear since November, and now there are options for 4% with Apple even if Fidelity starts dropping. The cash doesn't need to be very liquid honestly, though at some point I will use a chunk to purchase a house. That is likely 18 months from now at least.
Posted on 4/19/23 at 11:46 am to Thundercles
quote:
Short version: If you had no current positions, would you readily buy into stocks and funds today?
OK, approaching this as if one currently has no equity exposure… It would depend on factors like age, job security, overall financial situation, etc.
You mentioned buying a house in the next year or so. Some of the money you’re stockpiling will go towards the downpayment? No, I wouldn’t put that money in the equity market. I’d think of that as separate from anything else and put it in some sort of high yield account or treasury bills. If you have an IRA, 401K and/or HSA and you’re below 50-55, you should have at least some equity exposure… the younger you are, the higher the percentage of exposure. Your best investment move would probably be to stick with broader based equity ETFs.
Good post. Good question. The other post you referenced was hopefully just a troll. But there have been more than a few posts like that that weren’t troll posts. They usually start out with, “I know you shouldn’t try to time the market, but…”
Getting out and taking profits isn’t the hard part. But these people aren’t traders. Knowing when to get back in, so they can capture future long term gains, is what the vast majority fail at.
Good luck to you.
Posted on 4/19/23 at 1:29 pm to Thundercles
Just wait til next year and you won’t have to buy a house
We’ll all be in the fema camp
We’ll all be in the fema camp
Posted on 4/19/23 at 1:35 pm to Thundercles
quote:
If you had no current positions, would you readily buy into stocks and funds today?
Readily? if you believe in stocks. like voo in a roth Ira. at least you won't be buying all time highs.
Posted on 4/19/23 at 2:01 pm to Thundercles
quote:
It seems strange to plunge money in at what is very possibly the top of the market
https://awealthofcommonsense.com/2014/02/worlds-worst-market-timer/
Posted on 4/19/23 at 2:45 pm to Thundercles
No, better options out there to harvest yield.
This post was edited on 4/19/23 at 3:18 pm
Posted on 4/19/23 at 7:32 pm to Thundercles
quote:
That is likely 18 months from now at least.
Coming from someone who is effectively 100% invested in the stock market, I wouldn’t put a penny in the stock market that I needed in 18 months.
You can copy and paste that response for basically any economic scenario.
Posted on 4/19/23 at 8:13 pm to Thundercles
Yup. Value and foreign stocks. 60/40. Best P/E ratios you can find now. Plus bonds in tax advantaged accounts.
Nothing you need to access in the next couple years. That shorter term money should go in treasuries or a treasury like fund. High yield savings accounts are nice, although you have to pay state income tax. With treasuries you don’t.
Nothing you need to access in the next couple years. That shorter term money should go in treasuries or a treasury like fund. High yield savings accounts are nice, although you have to pay state income tax. With treasuries you don’t.
Posted on 4/19/23 at 9:20 pm to slackster
quote:
I wouldn’t put a penny in the stock market that I needed in 18 months.
Do you remember the young fellow who was on here a couple of years ago… the one who sunk his downpayment money (had already signed a contract!) into AAPL because he just knew that he’d turn a quick profit? As memory serves, AAPL shed about 10 points not long after his purchase. Although it did recover several months later, I always wondered how he explained that move to his wife (or now maybe ex-wife).
He never came back, so hopefully there was no domestic violence that resulted.
Posted on 4/19/23 at 9:53 pm to Jag_Warrior
I remember something along those lines, and I just don’t understand it. The broader market alone is a bad idea for 18 months, much less an individual stock.
Posted on 4/20/23 at 7:57 am to Jag_Warrior
There’s a thread like that once a week on here
“My kid doesn’t start college til a year from now I’m gonna put his college money in the stock market and double it!”
I’m sure all those kids are working the rigs now instead. Which is better for them
The stock market is a scheme designed to take money from people who work and transfer it to people that don’t work. Think about how many Edward Jones baws out there justify dinging a blue collar baws investment account 300 bucks a month to sit in a spinny chair and answer the phone
“My kid doesn’t start college til a year from now I’m gonna put his college money in the stock market and double it!”
I’m sure all those kids are working the rigs now instead. Which is better for them
The stock market is a scheme designed to take money from people who work and transfer it to people that don’t work. Think about how many Edward Jones baws out there justify dinging a blue collar baws investment account 300 bucks a month to sit in a spinny chair and answer the phone
Posted on 4/20/23 at 9:18 am to Jag_Warrior
quote:
Do you remember the young fellow who was on here a couple of years ago… the one who sunk his downpayment money (had already signed a contract!) into AAPL because he just knew that he’d turn a quick profit? As memory serves, AAPL shed about 10 points not long after his purchase. Although it did recover several months later, I always wondered how he explained that move to his wife (or now maybe ex-wife).
Every year when my wife and i head over to the Tax lady shes finds out what good or bad thing i have done regarding my stocks. Last year she learned i took some nice size loses in some growth stocks i bought way to high. I told her i just got us some extra tax money for this refund.
I know you supposed to hold but i could use that money elsewhere.This post was edited on 4/20/23 at 9:19 am
Posted on 4/20/23 at 9:25 am to Thundercles
quote:
Would you enter the market now?
The best time to enter the market is 30 years ago.
The second best time to enter the market is today.
Posted on 4/20/23 at 10:28 am to LSURussian
quote:
LSURussian
Good to see you posting again.
Posted on 4/20/23 at 10:33 am to notiger1997
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