what do you think of this stock market?
 

I try not to look to often but this market is on fire.


Technically, I am 'rich' but for some reason, I am still very cash poor! lol!


For people still accumulating wealth, market highs are not good because you are buying into an expensive market. you really want a depressed market to buy into because you buy more units. Oh well. it looks nice on paper for sure to see such big numbers but unless you sell, you aren't really in a different place. I try not to let it get to my head because this market could easily drop like a rock.


Keep on dieseling I say!

Time to sell and take profits. Go temp into money market or some other market with high liquidity. Then get back into common stocks in August.

That's my botanical opinion.

Im lazy and just let my mutuals go up and down. Over the long haul I'll be okay. Made it through 2008-2009 okay due to diversified portfolio but didn't make the profits that people with excellent nerves and timing have.

you have the benign neglect strategy! that is the best strategy to have.


people who buy and sell are doing nothing but making their brokers and the gov't richer.

part of me wants to cash some chips in and buy a new car. the other part says no, let it ride.

Good decision. Why would you want to trade an appreciating asset with a depreciating asset? In any event, economy 101 - spend only N% of your asset on a car, new or used. N < 5.

Day trade account has been fun lately, otherwise just weather the storm with the actual investment accounts...no sense trying to play wall st with retirement accounts if you don't have to.

someone on this forum once made a quote that stuck with me. he said 'if it flies, floats or f*&^, you don't buy it, you rent it".


they have been good words to live by.....I would not know about the last bit but the first 2/3 of it is spot on

That has got to be an AKLIM quote. The guy had some great one-liners.

Yes. Others too of course.

A good friend of mine who has a lot more money than I do said something like this. "the stock market is set up for a few clever insiders to make all the money off the rest of us suckers."

So I have studiously tried to keep all my worth in things I understand....cars and buildings.

The great recession was uncomfortable but I weathered it and a load of more experienced developers went belly up.

I'm probably better off now than in 2007 but I threaded the needle financially and it was never a sure thing....surviving financially. I felt richer in 06 or 07 but I am wiser now.;)

It's awesome... But I'm thinking about converting my investments into a house.

Stock won't keep me warm and dry in winter.

...and the value of a house will never go to zero.

Unless you're in Detroit.

Almost zero....oh yeah some did go to zero didn't they?

Perfect storm there.

That is smart advice, also referred to rebalancing.
Say you have 100k in stocks and bonds that are evenly balanced for your comfort level. Then stock market shoots up, you need to sell some stocks to add to your bond portfolio to return it to your comfortable level.
All it will take is J. Yellen to say two words (over exuberance), and you will see a correction in the stock market. Do not put it past her to do that, hope she is gone soon.

I agree.

Further, the more protracted this rise is, the more unstable it becomes. Perhaps it is fractal-like. A recursive phenomenon that penalizes predictability. Just guessing.

here we go again... this time approaching 21k fast. this is not normal!

NEITHER AM I!!!!

Higher it goes, longer it has to fall.

Take it from someone with 30 years on Wall St. If you have to ask, and especially if you have to ask on a site like this, the answer to any of your questions is: step back from the edge.

x2

This is not a forum for stock but I will put in my $0.02 anyway. You read it at your own peril.

1) Any news you read from the web for free is 'OLD' news. All the smart money had been made. You need to subscribe to 'new' news. You may not make any money even with subscribed news.
2) Stock market money is money you can afford to LOSE. So tread carefully.
3) Anyone must have some money in the market, that is a given. CD pays nothing while stock pays about 2%. The government 'forced' you to invest in stock with QE1,2,3 etc. It may change with interest rate going up. So be careful with bond as interest rate and bond yield go in opposite direction.
4) Mutual fund is best and worry free. It is unlikely go to 0 as you are investing a basket of stock. The risk is lower than individual stock.
5) You invest for the long term, what you hear now, day to day/month to month, is just noise.

Many happy returns.

My portfolio increased a bit over 7% last year. My best went up over 13% my worst was just under 2%.

As noted previously, now is a great time to rebalance. In my botanical opinion.

"In view of realized and expected labor market conditions and inflation, the Committee decided to maintain the target range for the federal funds rate at 1/2 to 3/4 percent. The stance of monetary policy remains accommodative, thereby supporting some further strengthening in labor market conditions and a return to 2 percent inflation.

In determining the timing and size of future adjustments to the target range for the federal funds rate, the Committee will assess realized and expected economic conditions relative to its objectives of maximum employment and 2 percent inflation. This assessment will take into account a wide range of information, including measures of labor market conditions, indicators of inflation pressures and inflation expectations, and readings on financial and international developments. In light of the current shortfall of inflation from 2 percent, the Committee will carefully monitor actual and expected progress toward its inflation goal.

The Committee expects that economic conditions will evolve in a manner that will warrant only gradual increases in the federal funds rate; the federal funds rate is likely to remain, for some time, below levels that are expected to prevail in the longer run. However, the actual path of the federal funds rate will depend on the economic outlook as informed by incoming data."
https://www.federalreserve.gov/newsevents/press/monetary/20170201a.htm


Vanguard suggests 30 E, 65 F & 5 res for someone my age.;)
My current mix is 37 E, 58 F & 5 res. The fixed are 50/50 Mid & LT corp. debt. Took a little nick in those when rates rose in the fall-13 basis pts. No big deal. I'm looking to rebalance the LT soon. Heard the other day maybe two rate hikes this year, possibly May & Nov? May rate hike may be baked in the market already? I'm up 6.5 over 14 months, 3.0 coming since Jan.1.

Dang, we've got the same strategy. I wonder how many of are doing that? If lots, that's not good.

Might have to rethink.

My favorite casino.

A whole lot of people liked his speech to Congress yesterday. Up 250 on the DOW blew right through 21,000.
I likes, except need to sell some now. What to do?

I'm rebalancing to put more in bond mutual funds and gov securities.

Conventional wisdom says bonds are going to take a hit with rising fed rate. Probably true. When money flees I buy.

Good idea!

Astonishing, but it's your money. When rates rise, bonds fall, simple arithmetic. Mind the duration.