I've seen lately, on this sub, an increasing concern for a stock market downturn. Will there be one? Yes. Do we know when? No. We all know that market timing is impossible but we all know that when the market has lost half its value or more, its time to buy. In 2008 there were stocks with beautiful cash flows and dividend yields of more than 7%. This is why cash securities are important even if they're paying very little. If the stock market tanks, you can cash out of these weaker investments and jump into the stock market at the most opportunistic entry point. Recently, I bought some treasury bonds yielding 1.9% that mature next August. I've seen nice CD's offered at credit unions between 2-3%. You will be charged a minute fee for cashing out early when the time comes. This won't eliminate the interest you earned and kept. It certainly won't matter when you see a company like Heinz yielding an irrational 8% and making double digit capital gains like following 2008. Hold stocks, but keep some cash too. Don't take my word for it. Think it over. I wish you luck and success in all your endeavors.
Submitted December 05, 2017 at 08:00PM by ROCKETNINJA123 http://ift.tt/2zSOaPb
