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
Stock Market Question
April 6th, 2015 at 02:02 pm
6 Responses to “Stock Market Question”
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April 6th, 2015 at 02:02 pm
April 6th, 2015 at 02:18 pm 1428329885
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.
April 6th, 2015 at 02:59 pm 1428332366
April 6th, 2015 at 05:51 pm 1428342697
April 6th, 2015 at 06:37 pm 1428345464
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.
April 6th, 2015 at 11:31 pm 1428363085
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.
April 18th, 2015 at 03:07 am 1429326425