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Stock Market Question
April 6th, 2015 at 02:02 pm

Hi guys

I am trying to put as much as I can into investment. mostly (all) mutual funds. some health care. some balance retirement year funds. I keep hearing the stock market bubble is going to burst.

Are you guys pulling out of the market?
What do you recommend?
Do you think it is going to burst?

Seems like every time it went down it went right back up and if you stayed in (vs selling) you were ok.

Thoughts?

Thanks

Posted in Musings | 6 Comments »

6 Responses to “Stock Market Question”

  1. creditcardfree Says:
    April 6th, 2015 at 02:18 pm 1428329885
    1428329885

    I'm 42 and my husband is 45, we have never pulled out of the stock market. Even when it dropped really far in 2008. In fact we were still investing every single month...which means our money went farther and we bought more shares. A majority of our money is in Vanguard's S&P 500 Index fund. The reason we didn't pull out is that we don't need this money now. This is retirement money for 20+ years down the road.

    What are you investing for? Retirement? If so, start getting in. Monthly investments are a good idea. Some months you buy more shares, other month less with the same amount. Yes, it may go down, but the market is volatile. Over long periods of time, your shares WILL increase in value.

  2. Ima saver Says:
    April 6th, 2015 at 02:59 pm 1428332366
    1428332366

    I agree with creditcard free!! I started in mutual funds in 1988 and have never pulled out of the funds. I just stay the course. The bulk of our money is in Vanguard s&p index 500 alos, and I have been very happy with the returns overall.

  3. Petunia 100 Says:
    April 6th, 2015 at 05:51 pm 1428342697
    1428342697

    I just invest on my schedule and rebalance when needed. I don't try to move in and out and time the market. There are a few people who can do that and be right more than they are wrong, but the vast majority of us cannot do that. I know I can't, so I don't try. I can't afford to be wrong. Smile

  4. Another Reader Says:
    April 6th, 2015 at 06:37 pm 1428345464
    1428345464

    I think all assets are overpriced today because there is too much liquidity chasing too few assets. The bond market to me is especially scary - badly mispriced risk there.

    That having been said, twenty years from now it probably won't matter, at least for stocks. Year to year market behavior is rather manic. The long term trend is up, and that's what you are looking for. If I had a qualified retirement plan, I would buy broad equity index funds and/or ETF's on a regular schedule.

    If I understand market history correctly, value stocks over time have outperformed the general market. I would also consider emphasizing value type funds and ETF's to some extent.

    On the taxable side, which is shorter term, I'm a bit more concerned. I have cash as dry powder, and I am holding that for purchases of any assets on my shopping list that decline to the point they become cheap. I was waiting for energy stocks to drop to reflect the drop in oil prices, but that has not happened. It's not so much that people are optimistic, it's that there aren't any better alternatives.

  5. PatientSaver Says:
    April 6th, 2015 at 11:31 pm 1428363085
    1428363085

    That's the nature of the stock market: it goes up, it goes down.

    I wouldn't blindly invest in the stock market without deciding when you need access to that money. If it's short-term money, the stock market is the wrong place for it.

    You could also go online to someplace like Vanguard and do a risk tolerance survey to determine what level of risk you're comfortable with. That will help you decide on your asset allocation mix.

  6. Amber Says:
    April 18th, 2015 at 03:07 am 1429326425
    1429326425

    I've got to start investing.

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