Stock Market/Investing/Fin Planning Catch-All

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Healing said:
This stagnation of a prolonged bull market, plus don and elon, are why I bailed on growth stocks, and only kept dividend blue chips. A healthy percent of my holdings are now in a money market and inflation indexed funds. While the dotcom bull market returned a higher margin, this one has lasted considerably longer.

www.investopedia.com

Market Milestones as the Bull Market Turns 10

March 9, 2019, marked the 10-year anniversary of what many call the longest bull market in history. Here are some of the key milestones.
www.investopedia.com www.investopedia.com
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me too

My focus is on capital preservation. 60% of my portfolio is in dividend paying "widow and orphan" stocks which I have held for the last 35 years. The other 40% is in a Roth IRA money market paying 4.16% in monthly interest which I consider to be a low risk muni bond proxy.
 
Last couple of weeks have wiped out YTD gains. Basically flat for the year.
Certainly feels like a flight to quality, safe harbor stocks.
 
CRHeel94 said:
Last couple of weeks have wiped out YTD gains. Basically flat for the year.
Certainly feels like a flight to quality, safe harbor stocks.
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My grandson will be attending college in 18 months. I have had his 529 plan in a total stock index fund and it has been a nice ride during the Biden years, but I have moved 75% of his portfolio to an interest accumulation fund which will cover 100% of his 4 years at an in-state university ( fingers crossed for UNC)

The remaining 25% I'm going to keep in the total stock index fund and hope Trump's stupidity doesn't take it to zero. My hope is that over the next 5 years there will be enough to cover the cost of graduate school should my grandson decide to pursue a post graduate degree.
 
CFordUNC said:


Here comes the TRUMP RECESSION
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but the good news is a Trump recession, just like before, will bring down the price of eggs and gasoline. And just like before, the minor downside could be a return to 6.7% unemployment... which is a small tradeoff if you can buy eggs for $2/dozen :sneaky:
 
A warning and advice to those touting the success and "no brainer" approach of low cost S&P 500 index funds.

An excellent strategy for the past few years, even longer. That is because it is impossible for a well diversified excellent fund manager with stocks across all sectors, to outperform the S&P when 80%+ of returns have been driven by the largest companies all in the tech sector.

When a recession or major pullback hits, the index will get crushed for the very same reason. A well managed diversified portfolio will hold up MUCH better. And long term returns are made as much by beating on the downside as the upside. That is why the best managed funds typically outperform the index over a 10 year period by as much as 2%+ per year, net of all fees.

I share this not to start a debate. But you might want to consider switching to an "equal weight" index or etf
 
Kraftyheel89 said:
A warning and advice to those touting the success and "no brainer" approach of low cost S&P 500 index funds.

An excellent strategy for the past few years, even longer. That is because it is impossible for a well diversified excellent fund manager with stocks across all sectors, to outperform the S&P when 80%+ of returns have been driven by the largest companies all in the tech sector.

When a recession or major pullback hits, the index will get crushed for the very same reason. A well managed diversified portfolio will hold up MUCH better. And long term returns are made as much by beating on the downside as the upside. That is why the best managed funds typically outperform the index over a 10 year period by as much as 2%+ per year, net of all fees.

I share this not to start a debate. But you might want to consider switching to an "equal weight" index or etf
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Does this mean that as an investor in my early 30's, with 100% of my investment portfolio invested in total market indices, I should be considering a shift toward a more conservative investment philosophy? I've always figured I have a very high risk tolerance and such a long horizon of time until I *need* my investment portfolio, that I'd be fine with just riding it out in a 100% total market allocation come hell or high water for the next few decades.
 
CFordUNC said:
Does this mean that as an investor in my early 30's, with 100% of my investment portfolio invested in total market indices, I should be considering a shift toward a more conservative investment philosophy? I've always figured I have a very high risk tolerance and such a long horizon of time until I *need* my investment portfolio, that I'd be fine with just riding it out in a 100% total market allocation come hell or high water for the next few decades.
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Don't you work in finance? If so, why are you asking Krafty? Not that he's a dunce, but it seems odd for you to be asking this question.

100% in total market indices is already pretty conservative. You don't want bonds. If you want to downshift into lower beta stocks, I mean, sure -- but then you're making sectoral bets and it's unlikely that you would outperform the market that way.

When you say total market, do you mean total US stock market? Worldwide stock? Total US market? If you don't have any money in other economies, that would be my recommendation. I've done very well by investing in India and/or Brazil ETFs. I currently have an India one.
 
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