Investors....come in please!

Status
Not open for further replies.
Got loads of cash on the sidelines & wanna let it grow in the Market, but with where it is,
it'll plummet as soon as I put it in.

I don't know what the heck to do.
 
Originally Posted By: Turk
Got loads of cash on the sidelines & wanna let it grow in the Market, but with where it is,
it'll plummet as soon as I put it in.

I don't know what the heck to do.



I am in the same boat with some recently acquired "early inheritance" funds, but have an appointment with a Charles Schwab advisor tomorrow. I've never had to deal with investing before. My retirement was taken from my check and well managed by NVPERS. I was lucky.

I'm likely to split it between a fund that is all high dividend paying stock and one that is a mix of roughly 38% US and foreign stock, 30% bonds, and the rest in cash investments, real estate, and commodities. Both appear to be "moderate" risk. The advisor may have better ideas.

Over the long term, getting in at a high is far better than doing nothing.

Ed
 
Originally Posted By: Turk
Got loads of cash on the sidelines & wanna let it grow in the Market, but with where it is,
it'll plummet as soon as I put it in.

I don't know what the heck to do.

Personally, I'm not in a hurry to spend my cash reserve.

Earlier this month I took some profits before the little pullback. I scored +$2 on HMH and +$11 on VZ . OTOH, it cost me $100/month in divs. Last week I bought another 2k ARR and got my $100 div back. Also I doubled my cash position. I'm ready for another little dip.

Over the last few years, I've done some stupid things with my investing. The 08 crash cost me over half my portfolio, About 1/3 of my direct investment. It could have been worse. At the time I was up over 20% .

The biggest thing I have learned is patience. My monthly divs keep rolling in adding to my cash. I'm ready for another little pullback.

YMMV

Wayne
 
Originally Posted By: Oldmoparguy1

I'm ready for another little pullback.

I think we'll see a pullback next week sometime so I'm going to take my profits friday.
 
Originally Posted By: Turk
Got loads of cash on the sidelines & wanna let it grow in the Market, but with where it is,
it'll plummet as soon as I put it in.

I don't know what the heck to do.

Get in with a good balanced portfolio.
 
Originally Posted By: Warstud
Originally Posted By: Oldmoparguy1

I'm ready for another little pullback.

I think we'll see a pullback next week sometime so I'm going to take my profits friday.
Good!
All my divs will be in, more cash..
Haven't traded much this year, looking for an opportunity.

LNCO just keeps plodding on, over 9% div, I'm up over $4. I'd like more.

Wayne
 
Originally Posted By: edhackett
I'm likely to split it between a fund that is all high dividend paying stock and one that is a mix of roughly 38% US and foreign stock, 30% bonds, and the rest in cash investments, real estate, and commodities. Both appear to be "moderate" risk. The advisor may have better ideas.


Do your homework and don't make a decision there on the spot (I realize that your meeting is already over). Keep and eye on your investment costs. Commissions, expense ratios, etc. These all combine to reduce your growth over time.
 
Originally Posted By: Turk
I don't know what the heck to do.


Get in the market. How much opportunity have you missed by NOT being in the market? Sure, the market will go down. And it'll go up. Over time, you win by being in.
 
Just like any thing else in life, if you research and do your homework you will learn how to properly trade the markets. Now if you are in the buy and hold camp I would be careful as the market has had a tremendous run from 2009 to today.

We don't buy and hold. We purchase based on indicators, make a profit and get out. Profits are not realized until sale is made.
 
I am free and clear of any long/middle bonds now. I have been getting better returns on MLP's, REIT's, Preferreds, etc for years anyway. All this junk about "you must balance your portfolio with bonds"..........is from people selling.........you guessed it: Bonds!

Yes I am way, way too much cash right now but that doesn't mean I'm not still making money in the market. I've ridden GILD up up and up! OTOH, I am buying BIS big time soon.

LINE, SDRL, ETP, ETV, ETB, PFO, USB, ACE all fat.

I'm up 13+% this year. Not that bad when you really really look how conservative my overall portfolio is. When (not IF) the market goes sour, I'll be good.
 
Hmmm, I'm up 43% now in my 2 trades with TMF. Granted, that's a trade of price appreciation as rates tank again, but money is money. Long term treasuries are in full rally mode and have been for months.

All this [censored] talk about how rates just have to rise has been wrong, will likely continue to be wrong etc. In addition, the obvious pattern with QE has been the complete opposite of the punditry. ie, QE made rates fall and tapering will make them rise. NOT. The exact opposite has occurred.

There's no way I'd short biotechs. Best looking cup and handle I've seen in a while. Why short a raging bull market??? BTFDs, don't short the rips when the trend is clearly up up and away.
21.gif
 
Last edited:
Originally Posted By: Drew99GT
http://www.investmentu.com/article/detail/39593/technical-analysis-signal-predicts-breakout

Plus, the recent pullback was to the 200 day moving average, it held, it's ripped, it's broken out. What am I missing???


Soon that hysteria will die out, like every time before. I come in, buy BIS and take money when I sell BIB.

Not sure. I think maybe you are missing that I don't use very much of my portfolio for these trades, usually in the $20K-$50K range.
 
That's cool. I've never had any luck trying to short things in an uptrend. Lost enough to learn not to do it again, but that's just me. I'd rather buy the dips or breakouts, and considering IBB's pattern, there's no way I'd take the pain of shorting it, even if it pulls back some.
 
Originally Posted By: Hokiefyd
Originally Posted By: edhackett
I'm likely to split it between a fund that is all high dividend paying stock and one that is a mix of roughly 38% US and foreign stock, 30% bonds, and the rest in cash investments, real estate, and commodities. Both appear to be "moderate" risk. The advisor may have better ideas.


Do your homework and don't make a decision there on the spot (I realize that your meeting is already over). Keep and eye on your investment costs. Commissions, expense ratios, etc. These all combine to reduce your growth over time.


Yes, doing the homework is important. I was doing that and was not ready to commit and missed that last dip. Both funds that I bought from Charles Schwab were no commission, 0.9% management fee, no internal fees on the Thomas Partners, and extremely low internal fees on the ETF based portfolio, which should stay below 1% total. I have no interest in doing my own trading so Schwab's higher than some trading fees weren't an issue. The management fees on their managed portfolios are among the lowest. I found you could get the same funds or similar elsewhere and be paying 2-3% total. I was originally thinking of going with another well known investment firm that has offices here in town. Five of them, in a town of 6600 people. I realized that somebody had to pay for all of those offices, and that somebody would be me.

I had figured the Thomas Partners was a moderate risk fund. The advisor told me that it was actually considered high risk as it was all stock and contained only large cap US companies. He was OK with that for my situation and thought it was an excellent addition to a portfolio, but didn't want me to put all my funds into it. I came away feeling that I had been given good advise, and that we came up with an initial plan that both he and I were comfortable with.

The point of the above rambling is to point out to Turk and others in the same situation is that with some homework you can make an informed decision on what to do. I came to the conclusion that there is no one right answer, just better and worse. Use the resources available to choose a better answer for your situation.

Ed

P.S. Pablo is right about the bonds. I was advised to keep them at a low percentage of my overall plan right now.
 
Originally Posted By: Drew99GT
That's cool. I've never had any luck trying to short things in an uptrend. Lost enough to learn not to do it again, but that's just me. I'd rather buy the dips or breakouts, and considering IBB's pattern, there's no way I'd take the pain of shorting it, even if it pulls back some.


By "soon" I should have pointed out, I don't mean on Tuesday or even next week - soon - as in as soon as the hysteria dies back. But I tell you, it won't be that long. A couple companies have been doing OK so the sector heats up. I say it approaches overheated really quickly.

Originally Posted By: edhackett


P.S. Pablo is right about the bonds. I was advised to keep them at a low percentage of my overall plan right now.


Well only right in the fundamental sense of getting slaughtered when rates rise. I make no promises on the when part and of course Drew is exactly right. Bonds have been rallying, that is precisely why I sold.
 
I'm up 10.11% YTD, so that's not too bad being somewhat conservative.

September & October are usually volatile, so I'll pump more in on the next pullback, but (hopefully) without catching the falling knife!!
 
Originally Posted By: Pablo
Code:
YTD 1-Year 3-Year 5-Year 10-Year

S&P 500® Index +5.66% +16.94% +16.84% +16.79% +8.00%


We needed this wake up call. Too many sources saying the S&P is overheated.
 
Status
Not open for further replies.
Back
Top