Whatever money you may need for the next five years, please take it out of the stock market right now, this week. I do not believe that you should risk those assets in the stock market right now
I don’t care where stocks have been, I care where they’re going, and I don’t want people to get hurt in the market,” Cramer told Curry. “I’m worried about unemployment, I’m worried about purchases that you may need. I can’t have you at risk in the stock market.
Five year money should not be in the stock market period. The current circumstance does not re-write this rule. This differentiates from a portfolio generating an income stream for a lifetime but a piece of money with a specific purpose that is five years, or closer.
6 comments:
Old JC finally got around to panicking after a 30% drop or so. That's got to be some sort of contrary signal, no?
Roger. There is a chart over at Trading Goddess that overlays the economic cycle and the stock market cycle, pointing to various points where one should, presumably, invest in the various sectors of the economy. Could you comment on this chart or the thought behind it? Thanks.
roger, with the experience you and others have, can you show some portfolio ideas for those in retirement and using only either ETF's and/or Mutual funds? Perhaps with an idea on how it performed in past year. An asset allocation of about 40% fixed income/60% equity.
Ron
JC has been saying to "raise cash" after the 700 point drop last week. Meanwhile Warren Buffett is buying ... who am I paying more attention to? Hrrmmmm :)
can you provide a link to the TG post?
Ron, i can try to get that but i would think that it would be more beneficial to you to play around with various ETFs from different providers, you;d have a better understanding that reading someone else's take. However I would add that in the last few months most normal relationships have broken down making this time an anomaly and as such a poor period for this type of study.
as far as selling right here, i have said this before is selling one stock or two would let you breathe better then do it but meaningful selling after a 30% drop seems like the wrong trade unless you really think we will be down 80%.
The Trading Goddess link with the chart mentioned above is:
http://tradinggoddess.blogspot.com/
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