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Al F

World Stock markets Plunge after US election. Where do you put your money now?

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I have no knee-jerk reaction to the event. However, the markets do react and it could be a good time to take advantage of this drop in values.

Trump still has to deal with Congress which is like herding cats.
Sometimes not much can get done execpt to spend more money. And you know what that means.

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Yep, Just like the Brexit issue, the world didn't crash because a single country did something the world didn't think that country would do.

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Last I read the market closed today within 49 points of an all time high.

Which is the reason it isn't typically wise to move too quickly. Most people loose money when following market moves that are based more upon emotions than anything else.

 

Latest from world financial markets.............

Edited by Kirk

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Looks like we survived another disaster, WHEWW!

At least for the short term.

 

Just look at the differences of opinion about the last 8 years, the 8 years, before that and the 8 years before that, whether those years were disasters or not.

 

Assessing disaster generally comes after the fact.

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At least for the short term.

 

Just look at the differences of opinion about the last 8 years, the 8 years, before that and the 8 years before that, whether those years were disasters or not.

 

Assessing disaster generally comes after the fact.

Differences of opinions will be with us forever. We obviously survived those "disasters" and never really noticed. We will do OK this time around also!

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My financial guy is very good, doesnt over react to everything and aims for the long term. Havent talked to him in almost 2 years . We just spend the money....lol

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Differences of opinions will be with us forever. We obviously survived those "disasters" and never really noticed. We will do OK this time around also!

If you study the history of the US stock market, you will discover that there have been very few periods as long as 8 years when the market has been down and no down periods as long as 15 years. Most wild market swings are caused more by emotions than facts.

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If you study the history of the US stock market, you will discover that there have been very few periods as long as 8 years when the market has been down and no down periods as long as 15 years. Most wild market swings are caused more by emotions than facts.

Yep, emotions and of course some "profit" taking by those in the know. Wait. . . . isn't that illegal (as in insider trading) :rolleyes:

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My financial guy is me and during the past five years I have been balancing the portfolio

to 50% bonds and 50% stocks in mutual funds. When I retired on September 1st after 38 years

as CEO of a 430 employee company I moved my retirement funds from the company plan to an

IRA because of the 20% minimum IRS withholding. As I was putting pre tax dollars into the plan during

my working years which my employer also contributed into the plan for me, it was about 90% stocks.

I also did without because I put as much into the plan as I could during my working years. Good Luck

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My financial guy is me and during the past five years I have been balancing the portfolio

to 50% bonds and 50% stocks in mutual funds. .....

 

 

It MIGHT be time to rebalance a little heavier into stocks and lighten up on bonds or at least move to shorter duration bonds. Everyone needs to follow a strategy that is likely to work and meet their needs and goals but it does seem to me (and the author of the linked article) that we are at the end of a very long bull market in bonds. Just my opinion - not advice.

 

---ron

http://finance.yahoo.com/news/2016-marked-the-end-of-the-biggest-bull-market-of-our-lifetimes-154353053.html

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I don't try to time the market, ever.

When they asked Warren Buffet what he had for his better half

he answered 90% stocks and 10% cash.

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I'm sure glad I didn't subscribe to "the sky is falling" and left everything alone. My advisor told me years ago to develop nerves of steel and stay the course, this while showing me a graph of the stock market for the last 50 years.

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Yep, I subscribe to Warren Buffet for long term investments of 90% S&P index and 10% cash. Also his put it in slowly over 10 years so you DCA and don't put it all in at the wrong time! However, I also subscribe to Stop Losses and trail these up as prudent, so when 2008 and also for us 2015 occurs we get out into all cash until the curl upwards begins again.

 

We apply the same principals to our smaller fun account for shorter term swing trades on both the short and long side, with trailing stop losses to lock in profits or bail on smaller losses if the suspected goes against us.

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I follow Buffet's advice too. (Sell high, buy low) Markets time themselves, but many sell on a downswing, then they lose money. I have sold about a fifth of my shares when TSLA hit almost $100, enough to take my original investment back, plus enough for a token 5% profit. I also held a small block of cash to buy when next Tesla went lower. It never went below $100 again.

Several times it dropped after it hit a new high over 250, once to 125 and I caught it at 135 to buy another good size block. But I don't have the cash to try to sell it every time it is high and then buy again low, which also involves a tax hit on capital gains. I know there are several riskier ways to short etc., but I don't know a "put" from a "putt! I won't risk my position since it went public, when I got in at 17 and 22.5, two or three more times. I always put new cash in and am about to make my position substantially more with inherited cash with Tesla because of the Model 3 and the just announced for 2018 Model Y. That gives them a product line in cars of the S, E, X, Y. (Tesla makes their 3 in the logo like three Stacked lines)

I believe the next few years will be some confusing times for investors. The banks appear to be moving their cash out to investments trying not to be caught with too much cash for what they expect next, according to one opinion advertorial I read this morning. I believe we are seeing the beginning of another historic short squeeze in Tesla. I believe that putting our new inherited cash into investments will be the best thing. The succession will take effect this week and then we will be liquidating their property, and soon after, sometime next year we will be selling our little five acres and moving North or possibly to either Bogota Colombia or Costa Rica, since BC appears to be out for retirees for now. Bogota is 45-68 degrees average temps. Tamarindo Costa Rica comes in with coldest and hottest only 5 degrees apart with an average temperature of 29°C (84°F) and the coldest is September at 26°C (79°F)

Bogota is much cooler than here, where temps in summer are getting out of hand with spikes into 110 degrees several times in the past few years. Call it what you want, color it natural or human, but I believe these Southern states are going to get very uncomfortable in my lifetime, and unlivable sooner than my kids end of life. Can you say Death Valley coming soon to a sea level near you?

For most of us here, long term weather is no concern. I know I won't be here in 2047 at age 95. I expect my kids will.

 

Edited by RV_

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Just curious, where have you seen spikes over 110 degrees that are unusual (meaning that there are no historical spikes over the same hurdle)?

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In the Princeton area over the last decades I've lived here on and off during my military career, from 1971 to present, I'd not seen it ever hit 110, let alone over,  until the last ten years as it has here in Princeton LA in 2011. it has historically been in the high 90s but lately it hits 100 regularly. The outdoor thermometer pictured always tracked our outdoor digital one, both in the shade, within a degree. I took that pic because even I didn't believe it.

112degrees (Mobile).JPG

It was actually a bit over, about 112°, when viewed straight on.

Edited by RV_

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On 4/17/2017 at 0:59 AM, RV_ said:

In the Princeton area over the last decades I've lived here on and off during my military career, from 1971 to present, I'd not seen it ever hit 110, let alone over,  until the last ten years as it has here in Princeton LA in 2011. it has historically been in the high 90s but lately it hits 100 regularly. The outdoor thermometer pictured always tracked our outdoor digital one, both in the shade, within a degree. I took that pic because even I didn't believe it.

112degrees (Mobile).JPG

It was actually a bit over, about 112°, when viewed straight on.

No question in my mind that the earth temps are rising.  But 110 in Shreveport, LA area for an official temp is really stretching it.  However it is not supported by the weather station at near by Barksdale Air Force Base as reported by Weather Underground History reports.

Additionally a large number of days in the 100's is not supported by the history reports from 2014-2016 for the months of July & August.  Although August 2015 was a very hot month with a 7 day stretch of 100's, topping out at 105.  On the other hand the summer of 2014 was fairly cool with no days of over 100 and a number of days with the highs not leaving the 80's

Below are the links to the July & Aug temps from 2104-2016: (OOPS, Editing date to 2014-2016)

July 2016 Two days of 100, the rest in the 90’s and no days of the 80’s

 

Aug 2016 No days of 100 plus, 11 days in the 80’s

 

July 2015 Three days of 100 to 101, two days in the 80’s and the rest in 90’s

 

Aug 2015 7 day stretch of over 100, with a high of 105

 

July 2014 No days of over 100, but 10 days in 80’s, 4 days in the 70’s with the rest in the 90’s

 

Aug 2014 No days of over 100, 4 in the 80’s and 1 day with a high of 71.

 

Edited by Al F
error in date

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