I still have about 40% of my portfolio in cash across my roth, ira and individual account. would most investment advisers recommend being all in now or still holding out for another big crash? i keep vacillating between investment strategies and occasionally panic sell. Could use some suggestions? i have no immediate need for any of this $ and have a good chunk in liquid savings as well.
KurtKrakkav
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I would sleep easier with paper on the sidelines. If it goes without you, no worries.
I'm not an financial advisor, I'm way better than them!
I'm not an financial advisor, I'm way better than them!
timsk
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Hi Shlok2,
When you say that the "market is down" - presumably you're referring to the volatility of the last few weeks? Certainly, there have been some dramatic falls but, by the same token, the market has regained a lot of lost ground. If one pans out for a long term view, the shenanigans of the last few weeks barely register. The market is still very close to all time highs. The left hand chart below is a weekly view of the S&P 500 with a 20 and 40 period moving average. The chart on the right is the daily detail (a blow up of the blue box on the weekly), with a 100 and 200 moving average.
At some point, the market will retrace. The only thing in doubt is A) when, and B) how far. Regarding the latter, perhaps it will test the 2007 highs (horizontal blue line on the weekly.) Of course, that's not to say that in the meantime it can't continue to rise (it can) but, based on these charts, I don't agree with you that now is a good time to be buying with the view to holding for the long term.
Tim.
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timsk
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For the chart in my post above, I used a version of MT4 that I don't normally use as it offers historical data not provided by my current provider. However, looking at the chart, I think the recent price is wrong. The chart below is what I think it should look like. That said, the basic point of my post above remains - now isn't the best time to be buying for the long term, IMO.
Atilla
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Why?
NVP
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as we approach another year end the soothsayers will appear and tell you what you should have done in 2015
I tend to still operate pretty safe with most of my capital ...property and low volatility investments .....I'm also still working as a consultant and that's going well so then its also my day trading that tops things up when I get time ...............that's low risk as well when i'm able to trade say 4+ hours a day ..........a little higher risk if i'm not getting screen time
giving advice to others is for fortune tellers ..........not my bag
my only advice is Follow the money
where QE happens the returns follow.............relatively speaking of course
so wait for the tap turning on/off and trade the moves with your investments
look at the results of the US ....then Japan ..then Europe ........
N
While that's impossible to know, if the markets go up over the next few years, you will be proved right. The real problem is not just you could be wrong, its that by the time its known you were wrong, there is no recovery strategy to recoup the losses or minimise the damage.
