Posted on 01/25/2017 4:01:56 AM PST by DIRTYSECRET
OK MY FRIENDS: I'm expecting a big market correction even with the 'exuberance' of a Trump win. Can these companies put it all in a cash account that earns nothing? Bonds are 'safe' but this time around I don't know. I'm not a tin-hat type that will hoard gold. How can the government insure $250k in our savings accounts if they are in reality the inmates running the financial asylum? Help me. Thanks.
The best thing that ever happened to my portfolio was the crash in 2008. I just kept buying and rolling over my dividends. I’m retired now and live off my dividends.
I was at the bank with a relative who was trying to deposit over 300K that this person just received in a real estate transaction. The bank officer said that the FDIC has 100 years to pay back their "insured" amount. I heard it with my own ears but have yet found anyone who corroborates the statement.
I gave up on mutual funds years ago when it was disclosed in a market down year the average fund investor has lost $4K for the year and the fund managers had made damn near half a million! Then the great Obama declared me to be a one per center and took away my GM bond and gave it away. Chrysler bond holders did no better. Every investor must realize your broker, money/fund manager they are living off your money! I have been mildly successful investing only in dividend paying stocks and staying with them for long periods. Rule—dividend must equal or exceed inflation rate plus banks CD rate before considering company profitability.
Depending on the plan both companies usually make a money market fund available for IRA/401k holders. I’ve not trusted the market since about 2012 so I’ve missed a lot of the run up since then, but the valuations and P/Es just haven’t made any sense to me.
I’m with you I see a big correction coming, not because Trumps policies are going to have an impact; but because the banks/fed have been supporting it up till now and they will stop as they try to punish him. It’ll recover but at a slower pace then previously. Just my opinion of course.
Pfl
You can also use bank accounts as your core account. I’ve split mine up among several banks.
Ssving for later....
AMEN!!! DO IT!
You very life may depend on how you invest your retirement nest egg, so I’d suggest consulting a professsional. If you want to safely invest in bonds, one option is a bond ETF like VRP.
Yes, I agree with you that a correction is coming. Likely withing the next 2 years. As many of us have watched 0bama’s minions pump million/billions/trillions of fiat digital money into the system, eventually it does have to come out of the system.
Hopefully it will be a slow contraction with a few burps along the way. I believe you are wise to moderate the current market Trump exuberance against the reality we have all discussed of the past. Many in my circles are concerned about the ongoing instability of the banks and that when the “correction” hits people will take a hit much like Cyprus did a few years ago. On that account they may be very right as Trump likely won’t bail-out the banks this time.
President Trump so far and it isn’t even the first week has shown already to be taking brilliant step after brilliant step to set in place the mechanisms to save our economy. But, and any good business person can tell, there is always a correction in every company takeover. Things get worse, or seem too, before they get better. This isn’t just some small/large company he is taking on, it is the government of the United States.
Honestly, look what industries he is throwing his weight behind. Pulling out and hoarding money isn’t the right answer in my opinion. I wouldn’t make any hasty moves right now. Just yesterday I was thinking, “Trump has done more for the American worker/economy in 48 hours than anyone has done in the last 16 years!” What the hell my mind said, ‘what the hell!’ It can’t be that easy and it won’t be long term.
None have a crystal ball, but don’t cast aside everything many here on the financial threads has worried about. The first one all the fiat currency out there. Second, go in and talk to Fidelity about your concerns.
BM to discuss with wife.
bkmk
That’s going to cost you thousands in lost capital gains.
Sorry, Trump won. No market correction. Instead big move to the upside. Ticker symbols to buy: shop, x, swir, oled, and many others.
Almost all of the various funds groups have money market accounts. At today’s interest rates, those equate to places to park your money if you are concerned about a major market correction. That’s not what I am dong, but, as they say, YMMV.
I pulled everything out of Fidelity when they had a fundraiser for Barney Frank
Just sayin’
Bookmark for later.
Bookmark for later.
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