Anyone moving stocks to more conservative safe haven areas?

[TX CHICKEN]

I moved about 20% a few months ago but it’s still pretty ugly….I am planning on retiring soon and my plan allowed for a 15% drop and I am getting a little nervous now…might have to add another year of work to my plan.


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[TX CHICKEN]

Haven’t lost a penny since I moved into an MIP class 2 temporarily.

That is an extremely conservative move and a good one if this gets really bad but I am trusting the history of the market.


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[rtp]

Ive sold off some assets to pay off all my margin a couple months back and took another 2% off the table a few weeks ago. Also have a contract to sell some real estate. So total about 15% converted to cash. Plan to HODL everthing else. When I feel we have hit bottom I will jump back in. Hopefully I pull that trigger near bottom.

[bow4my2]

That is an extremely conservative move and a good one if this gets really bad but I am trusting the history of the market.


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I have a 3 month cooling off period so I’m trusting things will stabilize as well. May not till next election

[RiverRat1]

Don't need to study anything.

Put about 6% of your yearly income into a S&P Index fund and let it grow. As you get closer to retirement 5 years or so out start moving 5 to 10% percent a year into cash balance or some other type of safer investment until you get about 1 to 2 years away and then have 70 to 80% in something safe.

The advice above is fool proof. It isn't flashy or the cool thing, but if you do this for 35 to 40 years you will retire a millionaire.

The stock market along with compound interest is a great thing! You can never make up time so start early!

I'll add to this... If you're young and not invested then starting now during a downturn can be great. It may take 1-5 years to hit new all time highs but buying now you're way ahead of those who bought over the last 6-7 months. The only timing one should do with markets is buy more the lower it goes.

[Planner]

For those that are investors, how did you learn to evaluate companies/stocks?? Books?? Watching financial news type shows?? Please throw a blind squirrel a nut!

Start with some research on systematic vs unsystematic risk. It’s basically the principle that you can diversify your way out of risk that’s isolated to one stock, but there will always be market risk. You can manage that risk by having different types of asset classes.

Let’s say you were going to pick who on your deer lease was going to shoot the biggest buck this year. Out of ten guys, your odds of picking right every year are pretty slim. What if your pick has to work and can’t hunt, or their spouse doesn’t let them go…(Unsystematic risk)But, if you got to pick all ten, your odds are greater. However, there’s still risk that no one shoots a buck. Maybe the lease floods, gets anthrax or the ranch is sold… those are all systematic risks that effect everyone on the lease…. Back to our picks, you can minimize these buy looking at different types of leases.. choose hunters who shoots the most doves on a dove lease, biggest mule deer, etc.

You can minimize unsystematic risk by buying lots of companies (as mentioned S&P500 Index). You can minimize systematic risk by choosing different asset classes (stocks, bonds real estate, cash, etc).

Hope this helps…. Balance your risk and your time horizon…


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[Pedernal]

Let a professional do it and pay them a small %

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Tried talking to a pro here in Del Rio and I wasn’t to comfortable with what he had to say. Being in a small town there aren’t too many choices. Thanks for the info.

Saw an article a couple weeks ago that tracked all of one of the TV investor guy's advice over several years. If you listened and did what he said to do you underperformed every single time.

Thanks and I agree with this and wasn’t thinking of following a TV commentators investment advice was more curious if it might be a place to gain some knowledge as to what makes good companies to invest in.

Don't need to study anything.

Put about 6% of your yearly income into a S&P Index fund and let it grow. As you get closer to retirement 5 years or so out start moving 5 to 10% percent a year into cash balance or some other type of safer investment until you get about 1 to 2 years away and then have 70 to 80% in something safe.

The advice above is fool proof. It isn't flashy or the cool thing, but if you do this for 35 to 40 years you will retire a millionaire.

The stock market along with compound interest is a great thing! You can never make up time so start early!

I'll add to this... If you're young and not invested then starting now during a downturn can be great. It may take 1-5 years to hit new all time highs but buying now you're way ahead of those who bought over the last 6-7 months. The only timing one should do with markets is buy more the lower it goes.

Thanks for the info fellas. I should have added more info. I am already retired. I would like to place some funds I recently acquired into the market. The idea is that it will grow semi-safe as it’s funds I would like to leave for my nieces and nephews.

[Pedernal]

Start with some research on systematic vs unsystematic risk. It’s basically the principle that you can diversify your way out of risk that’s isolated to one stock, but there will always be market risk. You can manage that risk by having different types of asset classes.

Let’s say you were going to pick who on your deer lease was going to shoot the biggest buck this year. Out of ten guys, your odds of picking right every year are pretty slim. What if your pick has to work and can’t hunt, or their spouse doesn’t let them go…(Unsystematic risk)But, if you got to pick all ten, your odds are greater. However, there’s still risk that no one shoots a buck. Maybe the lease floods, gets anthrax or the ranch is sold… those are all systematic risks that effect everyone on the lease…. Back to our picks, you can minimize these buy looking at different types of leases.. choose hunters who shoots the most doves on a dove lease, biggest mule deer, etc.

You can minimize unsystematic risk by buying lots of companies (as mentioned S&P500 Index). You can minimize systematic risk by choosing different asset classes (stocks, bonds real estate, cash, etc).

Hope this helps…. Balance your risk and your time horizon…


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Thank you. This definitely helps. I will research S&P Index and other options that will diversify my investments.

[RiverRat1]

Ive sold off some assets to pay off all my margin a couple months back and took another 2% off the table a few weeks ago. Also have a contract to sell some real estate. So total about 15% converted to cash. Plan to HODL everthing else. When I feel we have hit bottom I will jump back in. Hopefully I pull that trigger near bottom.

My WAG is this bottom will not be catchable. I think this will be up/down over 1-3 years.

Best case is a complete market capitulation with all indexes down over 10% in one day. But that's too easy to see bottom. Rates rise, people think/rally markets (like yesterday) hoping inflation has peaked, but then inflation doesn't slow and markets tank even harder...repeat for an unknown amount of times.

People may panic once rates are up another point or two. Housing slows but inflation doesn't. Markets get ugly if money starts flowing to individual bonds over 5%. Discretionary income falls more and more and money flows out of markets at the same time the FED is selling.

No one really knows. But markets are up huge still over the last few years. Even if they cut in half from here they still average over 6% per year over the last 10 years.

[rtp]

My WAG is this bottom will not be catchable. I think this will be up/down over 1-3 years.

Best case is a complete market capitulation with all indexes down over 10% in one day. But that's too easy to see bottom. Rates rise, people think/rally markets (like yesterday) hoping inflation has peaked, but then inflation doesn't slow and markets tank even harder...repeat for an unknown amount of times.

People may panic once rates are up another point or two. Housing slows but inflation doesn't. Markets get ugly if money starts flowing to individual bonds over 5%. Discretionary income falls more and more and money flows out of markets at the same time the FED is selling.

No one really knows. But markets are up huge still over the last few years. Even if they cut in half from here they still average over 6% per year over the last 10 years.

This is what I’m talking about……a really big correction is when I’ll be buying. Im 85% fully invested and don’t plan on changing that. If we get a large correction I’ll put that 15% back to work and add more via margin.


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[JBJTX81]

[QUOTE=Pedernal;16206717]Tried talking to a pro here in Del Rio and I wasn’t to comfortable with what he had to say. Being in a small town there aren’t too many choices. Thanks for the info.

I live in rural wise county and the person/firm managing my money is in St Louis. You don't have to use a local person. I don't care if they are in NYC or LA or Del Rio. I want the best regardless of location.

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[Rangerreese]

Following stock market scares me!

[Rangerreese]

Following

[meltingfeather]

Standing by with cash/liquidity.
Due to fortunate timing of rollovers, we’re well positioned for dome attractive acquisitions.

[Etxbuckman]

I finally talked myself into moving money into my Fidelity account and NOT buying anything. I’m gonna let it sit there so I have it ready when I do decide to buy. Now I just need to figure out what I want to buy/keep an eye on. Lol