Somebody explain when is a good time to get out of market and move to a money market acct

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Somebody explain when is a good time to get out of market and move to a money market acct

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You could be the richest human alive if you knew the answer to this. No one knows this answer to this. Unless you are retiring in the next few years, don't ever try to time the market in a meaningful way

ETA: but to answer your question, you just need to hold past the date listed as "ex dividend" and you are good

First, you have to time it correct twice once getting out and again getting back in. Chances are you dick it up and lose more timing than buy/hold.

Dividend stocks typically adjust price down at ex-dividend date iaw the dividend paid anyway. So it is more or less a wash either way just sell when you want to.

That's just what I've read others may know better. I dont invest for dividends. In fact, I wish the index funds that make up most my portfolio didnt spit off dividends it just generates unwanted tax drag. I'd rather manage when I realize a gain so I can tax optimize.

"Tax optimize" Uh sir can you explain that as if you were talking to a 24 year old dumb guy that owed a couple thousand in taxes this past year?

The management site you use (I use Fidelity) would list the Ex-Dividend Date.

Example:

Ex.Date: Jun-17-2024
Amount: $2.10 per share
Pay Date: Jun-25-2024
Yield: 1.696901%

So, in this example, I'd have to wait until June 17th to be eligible for the quarterly dividend based on the shares held at that time.

When to get out and move to cash?

My current thoughts: These hints of declining inflation probably means that the market will start pricing in a higher probability of interest rate cuts. Which would favor further increases in stock market performance. Usually, rate cuts are good for the markets.

Besides movements by the Feds, some analysts also follow certain trends that are considered "recession indicators", like unemployment rates, growth in real income, industrial production and retail sales.

For example...

If unemployment data comes out higher than expected, then we’d expect the markets are going to react positively because that is an incentive for the Federal Reserve to cut rates. And/or if retail sales come out lower than expected, then the markets will also react positively because again that is an incentive for the Federal Reserve to start cutting rates.

A flattening or a downward trend with some or all of these indicators could raise the likelihood of a recession despite rate cuts.

That's pretty technical stuff, but you can follow the news, read analyst assumptions on sites like Yahoo Finance to get a feel for market sentiment.

Overall, I'd say it depends on your financial circumstances. I.E. your risk tolerance, time frames, you need the money for something.

But timing isn't a given even for the experts. And over the long haul, stocks outperform bonds and money market funds, so the average investors shouldn't try to time the market swings. You'd generally lose money over the long haul with high percentages of cash.

Good Article

LINK /

This link will let you know how the worst market timer in history did. Sort of defines the downside of things.

when you retire.

You know what happens after the market goes down.... It goes back up again.....

I’m of the mind that the powers that be ain’t letting the market crash until after the election
So I am staying put till Fall

With only minor changes after.

If someone on here has the answer to this hit me up. Would love to retire tomorrow.

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Bob Brinker

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