*Investors Blog*
- Thread starter Warstud
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SPY and QQQ trading like penny stocks
I find this concept of 3X and -3X ETF of single stocks very interesting.
Some Tesla lovers would buy the 3X ETF.
https://www.cnbc.com/2022/03/11/single-stock-etfs-on-amazon-meta-tesla-are-coming-what-we-know.html
Some Tesla lovers would buy the 3X ETF.
https://www.cnbc.com/2022/03/11/single-stock-etfs-on-amazon-meta-tesla-are-coming-what-we-know.html
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Dave....we both tried Warning investors on page 1 about the inverted yield curve but they were ignored.
I have to imagine this advice does not apply to those of us that have our investments in well diversified portfolios for future retirement (401K, Roth, etc.). The recommendation for us long term investors has always been to ride out the storm. In today's conditions we are accumulating more shares at lower prices that will grow even more during the next upswing. We need this correction and it is part of the normal cycle. Last time seemed to be set off by mismanaged real estate. This time a combination of global pandemic, war, etc..
Owen Lucas
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Wait till Taiwan has some major news come out. I'm sure this summer will be full of surprises. I agree with you, I am buying this dip.
Expect to see huge stock buybacks... What an opportunity!
Everything comes down to RISK.
If a person is 35 years old, I would say go 50% cash on the sidelines and 50% in a diversified portfolio.
If a person is approaching retirement age and so much bad news ahead….. I say to go at least 80% cash.
Late last year I went 100% cash in my 401K, 70% cash in my IRA and brokerage accounts. I absolutely had to lock in those long term gains and shelter that money. I don’t mind selling before the peak and sleep well at night. Unrealized gains can evaporate very quickly when there’s major selling by the algorithms at big financial institutions.
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My investment knowledge is extremely rudimentary and every persons situation is unique (can't compare apples to oranges). I know about the risk vs. age concept. I have a chunk (60%) of my 403B in a "safe" section, but the remaining 40% is still in "less risky" investment portfolio. One person above mentioned they were down 30%. My entire portfolio is down a bit over 5% as of today. In the same vein, some of you were boasting of huge gains over the past recent years (20%+) while my more conservative portfolio (due to my age) was in the 8 - 12% range during that same period.
It seems that you are trying to time the market. Am I wrong that the $$ in my "less risky" investment portion are now accumulating more shares at their lower values and will grow even more during the next upswing? Vs. your cash being safe, but not doing anything else? What don't I understand?
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I will answer in the order you mentioned.
I was able to easily beat a basic S&P 500 fund over the past 5-10 years and get nice returns because I invested in:
Brokerage account:
40% - S&P 500 ETF (core holding)
20% - Technology / large cap growth / mega cap growth ETFs (top 10 holdings made up 50-60% of entire fund)
20% - Tesla, Apple, Amazon stock, these 3 companies had an exponential price climb / growth / market capitalization
10% - Cash to buy the dips, momentum trades like Pfizer, oil and airlines when the economy shutdown
10% - Leveraged 3X ETFs, very very risky
Roth IRA
At one time my IRA was 100% Amazon stock, that all changed last year. One of the best decisions I made to sell all my Amazon last year. Labor union vote in Bessemer, AL last year was the beginning of major changes from within of the entire company.
I’m not trying to time the market….. just keeping my eyes open to all the bad news that’s headed our way. There’s so many warning signs everywhere, do not ignore what’s going on. Nothing wrong with sheltering money if the crazy bull market run is definitely slowing down. Some people feel these markets will keep going up and up with no end in sight, not me. I ignore everything the folks on CNBC are doing. I think I’m giving quality advice on here…
I’ve done some -3X inverse trading and up a little YTD with everything down from their all time highs.
Like I said before, it all comes down to your level of RISK. As you near retirement age you have to lock in those long term gains. What really worries me is older people nearing retirement trying to squeeze out another 10% gains only to lose a substantial amount in nest egg if the algorithms start dumping everything and various trading websites are down. It’s happened before and people were locked out of their accounts due to ‘technical difficulties’. All the whales liquidated their positions but the small investors got burned. A major ‘rug pull’ might happen before the end of the year. Look what happened with Robinhood last year when some folks bad trades went against them, the website went down and all trading halted.
Hmmmm…...
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