Buckle up and get ready ?

[eye123]

Time to take some money off the table ? ..Record low interest rates, record high markets, inflation problems looming. What do you think ? (It's been a good run ...nothing lasts forever)

[shoes]

It might be or it might not. If the Fed doesn't raise interest rates and another 4 trillion hits the system, inflation for sure, but is there a better inflation hedge than the market? I have no idea. It definitely isn't going to be good if you're on a fixed income.

[eye123]

www.cnn.com/2021/09/28/investing/dow-stock-market-today/index.html

[spiderjohn]

Concern being—— if you take cash off the table, what do you do with it?
I am doing a lot of things like re-modeling, landscaping, buying appliances, vehicles and other larger ticket items to accumulate whatever upgrades I can to increase comfort and residual values. US market is flush with global cash as the safest place to park wealth. Ergo higher prices to no end …..

Selling market losers(fortunately few and all small) to offset gains equally or close.

Real estate is another option, even with values what they are currently. Just be smart with location…….

Even buying in on a few yearlings from recent and future sales.

I don’t trust or like the current admin and their plans…..
They don’t need to get their hands on trillions more—-they have yet to put the last $$ to good use. Still—NO POLITICS are useless and NO POLITICS are really bad with math and money management.

Probably a wild ride just ahead if you are worth anything……

[eye123]

"I am doing a lot of things like re-modeling, landscaping, buying appliances, vehicles and other larger ticket items to accumulate whatever upgrades I can to increase comfort and residual values."

Five star approach.....I like it.

[1hooper]

NASDAQ and S&P P/E's crazy high. 10%-20% correction expected.
Always keep 5% cash so I don't sweat the corrections, of which I've seen plenty the last 40 years.
Expecting bloodstock buying opportunities early 2022.

[spanky126]

I offer my services to hide all the cash you would like to send my way. I will always remember what a scratch golfing buddy of mine who played all over the world told me..." Hell Spanky...we can be this broke in Hawaii!

[eye123]

Anyone remember the mid 70's when on any street corner you could get double digit returns with no risk, and the Dow was at 600. Exact opposite today. Shoe and Spider mention something that stands out pretty plainly...if not the market, how do I protect against inflation and the dwindling value of the dollar. That seems an individual choice based on where you are in life. What may be more important is preserving what you have now. Markets go up they come down...never ending cycle. Back to the 70's....eventually stock prices got so low, it became a no-brainer to buy....you diversified you could not lose, as interest rates could not remain at their levels. Here today, interest rates can not remain where they are considering the level of inflation(worse then I believe was anticipated) and market levels maybe have absorbed all the "I have no other place to put my money". The government tap is being turned off. So buckle up and get ready ?

[spiderjohn]

IMO the govt has created too many dependents to cut their cord. Political suicide for an admin desperate to hold on to their shrinking support, even though what they continue to do(poorly) alienates the working class, business and independents. A real mess for everyone....

I am amazed that the market has held as well as it has, though as we mention, what else can you do? Scary if China and off-shore pull back on US investing and buying debt(even more concerning being owned by China/Asians).

So-- f it----protect your family, yourself and everything you own because their is no help on the way IMO. If you have a business, own anything or have saved anything, the fed is not going to be your friend going forward. Hide and shield whatever you can......

Am I radical or that far off?

[eye123]

I feel defensive mode may be the appropriate thing at the moment. Market has doubled in the last five years. I feel correction not far off. China real estate bubble coming to a head. May pull back. Gets interesting from here.

[spiderjohn]

Looking at it this morning, most seem down( interestingly tech) except oil——not a good sign considering govt uncertainty

[cherokeescot]

Plus ça change, plus c'est la même chose

[1hooper]

Ce qui monte doit redescendre.

[eye123]

[1hooper]

60% equities
35% fixed
5% cash
Will rebalance in Dec.

[spanky126]

How weird. I just got in from a visit with my doctor. Dr. K is from Damascus. Interesting fella. I asked Dr. K if he spoke any other languages as I have a lady trying to teach me Spanish. He said he speaks French. Looks like maybe Hoop and The Kilted Wonder may know a little French. I am fluent in English and BS.  

[eye123]

Where today can you even get 3% risk free return on your money ? Even so, with current inflation your losing money.(and transitory inflation is BS, they have a reason for raising prices,(supply labor costs) but once raised just added profit down the road, and will not go down to previous prices...might lower a bit if consumer revolts on paying increase) So eventually interest rates will have to rise to compensate for accelerated inflation. Then money that had nowhere to go.........all the government stimulus dried up.....consumer buying ability weakened.....etc. Of course the markets will account for this long before.

[tc]

if people are concerned with inflation may I suggest doing less, buying less, driving less, traveling less, eating less, drinking less etc.

if enough people do this inflation will drop and supply issues will be solved.

[cherokeescot]

Betting less 🤑

ps TC I’m doing 4 out of your 5 !

[eye123]

Bev, I thought you would say "less is more"


tc....why would you do less, when you could do more

[cherokeescot]

So I was driving around Ocala yesterday to get an oil change for my tiny European gas friendly Fiat 500. All I saw were signs saying “Now Hiring” and I’m not just speaking about low paying fast food restaurant jobs. Just my two cents view from the South . Make of it what you will .

[cherokeescot]

Hooper , I’m pretty close to you right now

Equities 65%
Fixed Interest 30%
Cash 5%

[spanky126]

Cash id King.

[spiderjohn]

Similar…..
Probably
70% equities
20% bonds
10% cash

Cash a little high since I have sold a country club and have had 8%_9% bonds called—-I will miss that cash flow. Parking some of it in a safe mutual fund(I have always avoided those funds for individual stocks—-basically creating my own mutual fund).

And just took 10% of three recently purchased yearlings that are now down your way, Bev—-and looking good. A Dialed In, a Creative Cause and a Bucharro!

[spanky126]

I failed economics in high school. Spiderman...you are the Gordon Gecko of UIC!...lol...