July 17, 2016 at 2:07 am #19355fedGuest
Just curious as the market seems to be at an all time high. I have some disposable cash to invest, and I wonder if I should wait or just go ahead and invest now?July 17, 2016 at 12:04 pm #19359JeremyGuest
If you do not have a 6-12 month reserve of cash for your personal expenses…I would keep your disposable cash in a liquid account. It is only a matter of time that the stock market is going to crash again. Some unbiased, financial/economic/historians/futurists/common sensical experts …Jim Rogers, Robert Kiyosaki, James Rickards, Robert Duncan, Mohamed El-Erian and many more believe that the next crash is going to be worse than the 2008 crash if the U.S. does not keep propping up the stock market by printing more money.July 17, 2016 at 2:34 pm #19361AnneParticipant
It depends on what you think the market will do. The professional’s outlook are mixed. Two articles from CNBC from last week:
This bank thinks the S&P could fall 15% this summer
“Bank of America Merrill Lynch equity analysts are among the most bearish on Wall Street, and they say the S&P 500 could retest its February lows this summer — about 15 percent below current levels.”
Opposite opinion from different analyst at same bank:
A ‘very rare’ signal could send stocks to 2,400, says BofA
Two acronym being used as of late: TINA=There Is No Alternative & FOMO=Fear Of Missing Out may help to explain recent rally. With Brexit & overseas areas still struggling, there is more demand for US bonds & equities, especially large dividend paying stocks. If and when FED increase rate, I believe market will go down. Next FOMC meeting is end of this month, which market usually reacts to. TS Paul would probably say the economic data is actually getting better. You have can look at economic data under the resources tab at the top of the page on this site. Bottom line: I haven’t a clue, but I am a hesitant when market is at high level.July 18, 2016 at 7:57 pm #19383TS PaulKeymaster
By happy coincidence, I have a little extra cash on hand right now and have been weighing my options. I will write a little bit more expansively on that in this month’s update, but the short answer is yes, TSP C Fund and Vanguard equivalents are where the bulk of that money is going to go.
The TSP Allocation Guide www.TSPallocation.com
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