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After this weeks earnings..is it wise to move some from S&P mutual fund to a money market

Posted on 6/23/24 at 9:53 am
Posted by SuckerPunch
Member since Feb 2024
929 posts
Posted on 6/23/24 at 9:53 am
Acct…..lets say 50% in money market and leave the other 50% in the mutual fund. Move it to secure the profits? Since we at an all time high. How much cash do u guys have sitting on the sidelines? 50%?
Posted by SuckerPunch
Member since Feb 2024
929 posts
Posted on 6/23/24 at 10:06 am to
Ok let me rephrase….do u guys think having some cash sit on the sidelines is a good strategy in case of a pullback or crash?
Posted by Cockopotamus
Member since Jan 2013
15853 posts
Posted on 6/23/24 at 10:14 am to
Posted by stewie
Member since Jan 2006
4002 posts
Posted on 6/23/24 at 10:25 am to
Unless you may need the money in a pinch or very close to retirement, just hold what you have in mutual funds.

Why pay long/short term cap gains tax in hopes of timing the market?

If you are a little spooked about the current market, just leave your current holdings alone and put any new investment cash into staggered 3, 6, 9, 12 month CDs.
You’ll earn over 5% and have some cash available at different points in the year if the market does drop.


Personally, I have around 5 - 7 cash in the taxable brokerage but it gets 4.13% just sitting there.
And that’s my “play” stock/bond pick allowance.
Posted by SuckerPunch
Member since Feb 2024
929 posts
Posted on 6/23/24 at 10:31 am to
Maybe im not being clear…when i say “cash sitting on sidelines”…im not pulling it “out”… so there is no captial gains tax…its still in my 401k…just in an interest bearing acct…so its just sitting there getting 2.5% interest no matter if market go up or down…i got about $250k total in acct so far.
Posted by SloaneRanger
Upper Hurstville
Member since Jan 2014
11025 posts
Posted on 6/23/24 at 10:41 am to
Almost never a good idea to try to time the market, and we really don’t have enough information about your personal situation, age, allocation goals, etc.

And you should be able to do better than 2.5% on cash. I’m getting over 5%.
Posted by SuckerPunch
Member since Feb 2024
929 posts
Posted on 6/23/24 at 11:02 am to
5% would be nice…but im stuck in a work 401k program and it only offers 2.5%…i hear what yall saying about timing the market…the poster who gave the example of them peter perfect fella timing the market…all great examples…but what about setting aside several thousand…because i could care less what the $ amount per share is right now in a mutual fund…i want the more shares.
Posted by SuckerPunch
Member since Feb 2024
929 posts
Posted on 6/23/24 at 11:06 am to
The object is to get “more shares”…now which strategy u go with..the market will come down…it always does…there will be a “correction” at some point is one strateg…the other strategy is never time the market..just put in when u can as soon as possible….i am 49 yrs old, stuck in a work 401k..meaning i have several mutual funds to choose from…thats it.
Posted by Jag_Warrior
Virginia
Member since May 2015
4292 posts
Posted on 6/23/24 at 11:12 am to
quote:

in case of a pullback or crash?


If you were (day or swing) trading there’s certainly nothing wrong with taking profits. But you’re talking about timing the market with your investment account. And going to 50% cash all at once (just based on the upcoming earnings season) is a pretty extreme move. So my question is, at what point would you begin to move back into equities? And what would be the catalyst for that?

Also, you may have already said this, but how long do you have until planned retirement?
Posted by Weagle25
THE Football State.
Member since Oct 2011
47316 posts
Posted on 6/23/24 at 11:21 am to
quote:

i hear what yall saying about timing the market…

I don’t think you are.

Don’t ask a question when youve already made up your mind.
Posted by Double Oh
Louisiana
Member since Sep 2008
22091 posts
Posted on 6/23/24 at 11:30 am to
quote:

Acct…..lets say 50% in money market and leave the other 50% in the mutual fund. Move it to secure the profits? Since we at an all time high. How much cash do u guys have sitting on the sidelines? 50%?




How old are you?

If you young im not moving anything around to a money market or mutual fund.

If you nearing retirement i can see you moving it around
Posted by SuckerPunch
Member since Feb 2024
929 posts
Posted on 6/23/24 at 11:49 am to
49…im just looking at “history”

1)its over due for a correction
2) reports came in from the month of May that May was the most money ever taken out of the S&P and moved into money markets accts
3)presidental election coming up so there will prob be an “event” of some kind so u cant discount this possibilty…conspiracy ..black helicopters…yeah

This is for those over the age of 3ish..since they lived thru up and down of stock market and events that affect the market. This bull run we on right now is gonna end at some point.
Posted by Pendulum
Member since Jan 2009
7618 posts
Posted on 6/23/24 at 1:09 pm to
Sounds like we should be asking you for advice.
Posted by JohnnyKilroy
Cajun Navy Vice Admiral
Member since Oct 2012
38836 posts
Posted on 6/23/24 at 1:11 pm to
quote:

Maybe im not being clear…when i say “cash sitting on sidelines”…im not pulling it “out”… so there is no captial gains tax…its still in my 401k…just in an interest bearing acct…so its just sitting there getting 2.5% interest no matter if market go up or down…i got about $250k total in acct so far.


Just leave it invested in sp500. You aren’t good enough to time this correctly. Don’t try.
Posted by Pendulum
Member since Jan 2009
7618 posts
Posted on 6/23/24 at 1:17 pm to
Top 3 reasons are following out flows from a month ago, bulls cant run forever, and black helicopters. I think he's got it.
Posted by Double Oh
Louisiana
Member since Sep 2008
22091 posts
Posted on 6/23/24 at 1:44 pm to
quote:

49…im just looking at “history”



Let it ride
Posted by NewIberiaHaircut
Lafayette
Member since May 2013
12081 posts
Posted on 6/23/24 at 8:12 pm to
quote:

How much cash do u guys have sitting on the sidelines?


In a 401K account? $0.00

Stay in baw.
Posted by FriscoTiger
Frisco, TX
Member since Aug 2005
4116 posts
Posted on 6/23/24 at 8:33 pm to
I am in my fifties and I have half my 401k in S&P and the other half in 5+% CD’s. The key is have a plan and follow through with that plan when the market does pull back.
Meaning dont get spooked and not buy back in when the news is bad and dont try to time the bottom.
Posted by makersmark1
earth
Member since Oct 2011
18606 posts
Posted on 6/23/24 at 8:35 pm to
Take it out at the top, and put it all in at the bottom.

It’s simple.

Good luck.
Posted by TheWalrus
Land of the Hogs
Member since Dec 2012
44746 posts
Posted on 6/23/24 at 8:52 pm to
I guarantee you some time in the next ten years there will be a significant pull back
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