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In such a climate, what could be good less-risky strategies for holding reserves?
by jadbox 1y ago
In such a climate, what could be good less-risky strategies for holding reserves?
- SoftTalker 1y agoCash in the bank so you can buy equities at the bottom.
- AbstractH24 1y agoHow do in know when that would be?
- SoftTalker 1y agoWell that's the trick isn't it.
- hdgvhicv 1y agoJust catch the falling knife and avoid the dead cat bounce
- layer8 1y agoYou don’t.
- throw0101a 1y ago> Cash in the bank so you can buy equities at the bottom. Cash is a good way to lose money through opportunity cost: * https://ofdollarsanddata.com/even-god-couldnt-beat-dollar-cost-averaging/ https://ofdollarsanddata.com/even-god-couldnt-beat-dollar-co... If you're worried about risk and being able to sleep at night, you can dial back from 100% equities (S&P 500, Russell 3000), and do some bonds. Vanguard (e.g.) has funds that are fixed 80/20, 60/40: * https://investor.vanguard.com/investment-products/mutual-funds/life-strategy-funds https://investor.vanguard.com/investment-products/mutual-fun... This way you don't have to go through the effort of rebalancing yourself.
- ninininino 1y agoOr a mixture of cash and gold or another hard asset / inflation hedge considering the US dollar already eroded 10% this year and Trump openly wants the dollar to devalue further.
- ethbr1 1y ago> Cash in the bank so you can buy equities at the bottom. JFC, this is the dumbest possible advice given this thread. If someone thinks equities are overpriced and one thinks the value of USD is decreasing, then 'cash in the bank' is an equally bad answer to 'buy equities now'. The correct answer, given those beliefs, is 'buy commodities' (or scarce assets).
- jwjohnson314 1y agoAnd sell some puts against assets at good prices to harvest premium in the meantime