I have cash, i'm a new investor, i've been reading a ton, i've learned a lot. I've read the books, i've been on MMM, and the one piece of advice everyone has is "don't try to time the market, just invest, and hold".
It's evident when a market has crashed, what's not evident is when it will crash. But we know that historically it's been on 8-12 year cycles, that means jack shit about the future because the world is a different place now than it was 10 years ago. That being said, I think this market rally is a bad sign of what's to come. Everyone says -- Trump is gonna be great on the stock market. All the regulations he will lift will boost the market (which obviously has it's own set of problems). But I think I will believe that the 8-12 year cycle is more true than not, especially in todays world
My point is. If I put $50,000 in the S&P500 in 2007, my total S&P500 return not factoring inflation would be 68%. If I invested $50,000 in mid-2008 when the market had collapsed -- which we know will rebound (if not, then our money becomes useless and the world becomes post-apocalyptic anyway), I would have had a 199% return. Give me a reason why I shouldn't be patient and wait a few years till the market crashes before I go in to the market?
I'm already in the market with only 20k, but i'm sitting on a bit of cash that i'm going to be patient with and wait. My first investment is a four-fund portfolio. VTSAX(70%), VGTSX(10%), VBMFX(10%), VGTSX(10%). Total stock, international, bond, and REIT's. I switched off of WealthFront's bullshit :D
Submitted January 13, 2017 at 12:02AM by imaninvestor http://ift.tt/2ij8nZH
