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One other approach when you don't trust the market is to pay off debt (if you have any). Depending on the interest rates of the debt you hold and how long it's

One other approach when you don't trust the market is to pay off debt (if you have any). Depending on the interest rates of the debt you hold and how long it's supposed to take to pay it back, you could save yourself a lot of money long term. It's not an approach that investors often recommend but if you've got a 7% interest rate on a 30 year mortgage the return for paying it off early is 7% saved. Whether the market goes up or down, the loss for that percentage remains the same. The more debt you get paid off, the more cash flow you free up to invest. It doesn't always make sense, but it's worth considering. When interest rates were really low I locked up a 2.8% rate on a 15 year mortgage...and at that point there's really no incentive to pay it off early. Other forms of debt will vary though.

joejerryronnie 8y ago
Very good point, I am paying off debt as well. This will position me better for the following two things: - Better debt to income ratio/monthly cash flow numbers as I diversify into real estate - Provide more cash flow to purchase under valued assets should the market drop significantly (there's always an initial overreaction)
- marketgod 8y ago
  Hey, I didn't want to respond to the real estate remark you made in the post where I responded, but now I kind of just had to. With real estate, there are hidden costs. The furnace breaks, the AC breaks. The stairs need something. The roof needs patching. There is mold. There is property tax. There are bad tenants. There are other aspects also. It takes time. IMO forget real estate and get in the market. But I mean, I am biased right? :)
  - joejerryronnie 8y ago
    Re: the hidden costs of real estate - yes, this all has to be taken into consideration when you run the numbers. But it works in the opposite direction, too. You can add some upgrades, or even a car port or storage unit, and increase the value and cash flow of your asset. I'm not looking at it as an either/or thing though, I'll still stay in the market just not 100%. Part of the reason I'm diversifying is because the market has been very good to me and I want to pull some of that profit off the table. In any event, I'm going to begin looking for the user named realestategod so you two can have a chat :)
    - marketgod 8y ago
      This all comes down to time. Time > Money.

joejerryronnie 8y ago

Very good point, I am paying off debt as well. This will position me better for the following two things: - Better debt to income ratio/monthly cash flow numbers as I diversify into real estate - Provide more cash flow to purchase under valued assets should the market drop significantly (there's always an initial overreaction)

marketgod 8y ago
Hey, I didn't want to respond to the real estate remark you made in the post where I responded, but now I kind of just had to. With real estate, there are hidden costs. The furnace breaks, the AC breaks. The stairs need something. The roof needs patching. There is mold. There is property tax. There are bad tenants. There are other aspects also. It takes time. IMO forget real estate and get in the market. But I mean, I am biased right? :)
- joejerryronnie 8y ago
  Re: the hidden costs of real estate - yes, this all has to be taken into consideration when you run the numbers. But it works in the opposite direction, too. You can add some upgrades, or even a car port or storage unit, and increase the value and cash flow of your asset. I'm not looking at it as an either/or thing though, I'll still stay in the market just not 100%. Part of the reason I'm diversifying is because the market has been very good to me and I want to pull some of that profit off the table. In any event, I'm going to begin looking for the user named realestategod so you two can have a chat :)
  - marketgod 8y ago
    This all comes down to time. Time > Money.