Anyone 90% stocks or more?

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wickedDUDE

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Jun 25, 2006
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Everywhere I go it seems that shit keeps getting more expensive.

I'm already about 75% stocks and 25% cash, but thinking about putting all or most of the remaining cash into stocks so that it keeps up with inflation.
 


wickedDUDE said:
Everywhere I go it seems that shit keeps getting more expensive.

I'm already about 75% stocks and 25% cash, but thinking about putting all or most of the remaining cash into stocks so that it keeps up with inflation.
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Go 100% in one stock and start a blog about what happens.

I vote you invest in Mgrunin PLC.

OH and inb4 hundreds of people say that the stock market is gonna collapse within X years, along with the dollar, and that all your money should be stored in things that have real value, like gold coins and guns.
 
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http://www.forbes.com/sites/edwardsiedle/2013/07/26/the-end-of-hedge-fund-terrorism/
 
100% and will be until I am about 50. Then I will start to get less risky, but with 15 years to go there is no reason to try to time or play the market.
 
Here seems like a good place to ask.

Which is "better", if any:

Investing $1k / mo into an index fund.
Investing $12k / year into that same index fund, all at once.

I guess I am referencing dollar cost averaging.
 
mattseh said:
Here seems like a good place to ask.

Which is "better", if any:

Investing $1k / mo into an index fund.
Investing $12k / year into that same index fund, all at once.

I guess I am referencing dollar cost averaging.
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It really just depends if you want DCA or if you want to try to time the market. A rear view mirror will let you know which choice was better..
 
mattseh said:
Here seems like a good place to ask.

Which is "better", if any:

Investing $1k / mo into an index fund.
Investing $12k / year into that same index fund, all at once.

I guess I am referencing dollar cost averaging.
Click to expand...

One might argue all in when the market is low, DCA when it's high. But of course you never REALLY know if the market is high or not.
 
If you are doing DCA, you will probably have to pay more in fees if you pay a fee for each trade.

Also since the market generally goes up over time, imo it's best to put as much in as early as you can. But usually it's best to wait until the market is selling off. And like c4yrslf12 said, it's basically impossible to know what will happen.
 
mattseh said:
Here seems like a good place to ask.

Which is "better", if any:

Investing $1k / mo into an index fund.
Investing $12k / year into that same index fund, all at once.

I guess I am referencing dollar cost averaging.
Click to expand...

Research shows that using the lump sum method is better 66% of the time. I'm a member on bogleheads.org and see this question come up very often.

Dollar cost averaging - Bogleheads

I hope you're using a low cost index fund, not one that charges 1% or more. My average expense ratio for the 4 indices that I use is 0.11%.
 
wickedDUDE said:
Research shows that using the lump sum method is better 66% of the time. I'm a member on bogleheads.org and see this question come up very often.

Dollar cost averaging - Bogleheads

I hope you're using a low cost index fund, not one that charges 1% or more. My average expense ratio for the 4 indices that I use is 0.11%.
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the answer is there's no answer. it's all timing. and you can only be right every time half the time.
 
Black swans are coming kids.

Keep it in cash. Scoop up assets on the cheap for huge wins instead of focusing on just keeping up with inflation or small gains. Cash gives you the chance to take advantage of opportunities that arise that those without can not.
 
evolutionvision said:
Black swans are coming kids.

Keep it in cash. Scoop up assets on the cheap for huge wins instead of focusing on just keeping up with inflation or small gains. Cash gives you the chance to take advantage of opportunities that arise that those without can not.
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The problem is you never know when this event will occur or how big it will be.

Who knows, it could be years before we see another significant drop. There's an opportunity cost for everything.
 
evolutionvision said:
Black swans are coming kids.

Keep it in cash. Scoop up assets on the cheap for huge wins instead of focusing on just keeping up with inflation or small gains. Cash gives you the chance to take advantage of opportunities that arise that those without can not.
Click to expand...

For a very short term investment strategy, sure. But if you want to save for 20+ years this isn't really the way to go.

By investing in more comprehensive index funds (not individual stocks - this is almost always stupid) you are basically putting your money into the economy. Don't trust the USA? You can diversify further with a world index fund.

If over the long run the stock markets were to continuously decrease or remain stagnant we'd be in economic turmoil. There would likely be a complete lack of significant innovation and purchasing powers would rapidly decline. Sure it could happen, but that is a total worldwide doomsday scenario.

Keeping your money in cash is far more likely to fuck you over the long run. You lose out on compounding and your purchasing power goes to shit.

If you do happen to spot good opportunities to buy assets (real estate, a business, whatever) you can always sell some of your interest in the market and take advantage of them.
 
balance said:
For a very short term investment strategy, sure. But if you want to save for 20+ years this isn't really the way to go.

By investing in more comprehensive index funds (not individual stocks - this is almost always stupid) you are basically putting your money into the economy. Don't trust the USA? You can diversify further with a world index fund.

If over the long run the stock markets were to continuously decrease or remain stagnant we'd be in economic turmoil. There would likely be a complete lack of significant innovation and purchasing powers would rapidly decline. Sure it could happen, but that is a total worldwide doomsday scenario.

Keeping your money in cash is far more likely to fuck you over the long run. You lose out on compounding and your purchasing power goes to shit.

If you do happen to spot good opportunities to buy assets (real estate, a business, whatever) you can always sell some of your interest in the market and take advantage of them.
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It's okay, he just heard mark cuban say he keeps his money in cash so he can buy things up quick, and decided to champion it himself. Unfortunately there's a big difference between most people's assets (likely 7 figures around here most probably on the high end, 5-6 figures for most) and mark cuban's.
 
mituozo said:
It's okay, he just heard mark cuban say he keeps his money in cash so he can buy things up quick, and decided to champion it himself. Unfortunately there's a big difference between most people's assets (likely 7 figures around here most probably on the high end, 5-6 figures for most) and mark cuban's.
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Partially true.
I did see Cubans video saying that, and my answer was very reflective of that.

What I should have said is something a little more true to my own thoughts and not as much regurgitated...

I trust myself and my own money making capabilities far more than some market that we can't control. In my situation I would probably not buy assets on the cheap. Instead keeping my money in cash gives me the capabilities to go and throw it at a successful business venture when the opportunity arrises.

If I see something that looks profitable I can simply go out and hire someone to build and manage it from the ground up for cheap instead of having to attempt to do it myself. My returns are much larger, and much quicker, I control it, and it's an asset.

All of that does not even take into account the black swan effect, which it seems like the world is just asking for in its present state. How much is the stock market built up on nothing but bullshit, gambles and hope right now?

Something like Mcgrunin is doing is much different as he is more or less gaming the system, but IMHO throwing everything into stocks for a longterm goal is just crazy.

Or I'm just a noob. Either way.
 
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