OFFICIAL STOCK MARKET AND ECONOMY THREAD VOL. A NEW CHAPTER

[ballinsam23]

I was in the same boat as you. Once Marcus started dropping it’s savings rates, I figured it’s best to have enough in a savings account to cover mortgage/rent payments for about 6 months. The rest i moved into my brokerage account and allocated between 8-10 stocks fairly evenly.

 

[igotthatstock]

I am in a weird spot in that my job location is uncertain starting in June and my wife took off in March to care for our kids. I have enough for what we need but I am looking to amplify what we get when I gain certainty on location. So I am basically playing with money that I could potentially need in 4-5 months with every investment I make. I stayed probably 60% cash at any given point in 2020 and turned significant gains. My version of being "low-risk" was holding cash that I could look at and say to myself, "I am being safe," while taking a bit more risk with the money I invested. In short, I have my house down payment sitting in my account while the rest is being pushed to the limit. Just to put this in perspective, that peace of mind cost me 6 figures last year. And I think about it almost every day despite the "success" I experienced in this goofy-*** market.

 

[antidope]

Out of curiosity for those that do not mind sharing, how much of your net worth (excluding 401k) is allocated to the market?

I come from a very conservative household so I use to allocate 70-80% between high yield savings and CDs. Back when rates were 2-3%, that was ok but with low rates expected for the foreseeable future, that asset allocation doesn’t make sense anymore.

I’ve been slowly allocating more to the market, mainly DCAing as I’m pretty skeptical of current valuations/bullish sentinments given the current state of the economy but I guess FOMO??? Might as well ride the way for now and being mindful of stop losses for the low conviction names.

ALL OF IT. Cash is pointless to me as well as fixed income. Haven't had cash in more than two years now

 

[johnnyredstorm]

Index funds are the new savings accounts. I’d be fully invested but my wife likes the safety net of an on hand savings account.

FB at the 200 day may have been the last gift you’ll see from them. I wanted to see it in the low 200s but that was foolish. Saw some numbers about what e-commerce can do as a growth engine for them.

 

[anderson]

Out of curiosity for those that do not mind sharing, how much of your net worth (excluding 401k) is allocated to the market?

I come from a very conservative household so I use to allocate 70-80% between high yield savings and CDs. Back when rates were 2-3%, that was ok but with low rates expected for the foreseeable future, that asset allocation doesn’t make sense anymore.

I’ve been slowly allocating more to the market, mainly DCAing as I’m pretty skeptical of current valuations/bullish sentinments given the current state of the economy but I guess FOMO??? Might as well ride the way for now and being mindful of stop losses for the low conviction names.

I am treading more carefully. I think you have the right mindset by dcaing. Have some money in the market to where you're getting some returns if we continue to go up, if we go down you're buying on the low and will rise back up eventually.

~60% in long term holds that I won't touch even if we see a pullback, cash position is high right now to mitigate risk and have buying opportunities. I DCA weekly and nimble on dips here and there.

 

[アミーゴ]

Y’all WAY too conservative

 

[igotthatstock]

Y’all WAY too conservative

To be fair, once I settle down in June / July, I am taking what is left and attempting to go to the moon. I am actually going to purchase things on credit that rely on me making a residual income from investing. This will force my hand, raise my stress levels, but ultimately I think help me get to where I always saw myself being.

 

[andycrazn]

yea its so conservative i pictured 80 year olds collecting sneakers with their nest egg in treasuries

 

[Xennial]

seems risky to have more than 30% of net worth in market exposure to me, should i go beyond that to 50%?

 

[johnnyredstorm]

I am treading more carefully. I think you have the right mindset by dcaing. Have some money in the market to where you're getting some returns if we continue to go up, if we go down you're buying on the low and will rise back up eventually.

~60% in long term holds that I won't touch even if we see a pullback, cash position is high right now to mitigate risk and have buying opportunities. I DCA weekly and nimble on dips here and there.

Liking the perspective here. Envious of that cash position but id fomo with it

end of the day none of us can tell you what to do with your money. If it was my call solely I’d have my entire net worth divided between some savings for rainy day and emergencies, index funds as my savings account and individual stocks as my wealth generation tool. But you gotta do what makes you sleep easily at night.

 

[アミーゴ]

y’all need to seriously set some goals instead of just throwing money at X and expecting Y - just work backwards

Don’t go extreme like me though lol

 

[anderson]

Liking the perspective here. Envious of that cash position but id fomo with it

end of the day none of us can tell you what to do with your money. If it was my call solely I’d have my entire net worth divided between some savings for rainy day and emergencies, index funds as my savings account and individual stocks as my wealth generation tool. But you gotta do what makes you sleep easily at night.

Everyday I'm trying not to FOMO rn. I feel like I was getting really ****ing greedy, everything was in the market and I just had to step away a little.

 

[deleted user 7639]

y’all need to seriously set some goals instead of just throwing money at X and expecting Y - just work backwards

Don’t go extreme like me though lol

I like extreme tho, teach me. I’ll even buy back into Tesla promise.

 

[antidope]

My "Savings" has been 100% SPY. I don't see the point of having cash at all. I get paid every two weeks. That in essence is my "fixed income" and I'm so young that I can handle any vol that arises. I'm 100% equities across all my assets.

 

[Xennial]

what if you get laid off

My "Savings" has been 100% SPY. I don't see the point of having cash at all. I get paid every two weeks. That in essence is my "fixed income" and I'm so young that I can handle any vol that arises. I'm 100% equities across all my assets.

 

[antidope]

what if you get laid off

Then I'd have to sell stuff down. Would be whatever at that point. Wouldn't bother me in the least. But for me holding any amount of cash doesn't fit my current circumstances.

 

[ballinsam23]

Laid off? I heard unemployment checks is where it’s at these days.

 

[1c3m4m]

Then I'd have to sell stuff down. Would be whatever at that point. Wouldn't bother me in the least. But for me holding any amount of cash doesn't fit my current circumstances.

I agree, I mean i do believe in having some sort of cash for emergency sakes but I want majority of my savings working for me, young, single, no kids, I really dont have much responsibilities that warrant cash on hand right now

 

[antidope]

I agree, I mean i do believe in having some sort of cash for emergency sakes but I want majority of my savings working for me, young, single, no kids, I really dont have much responsibilities that warrant cash on hand right now

That's what SPY is for me. If I needed cash I would sell that first or draw on margin and wait for the sale proceeds to cover if I needed cash on hand that fast. But between credit cards and access to margin I don't see myself ever needing that much cash that I couldn't access in a day.

 

[1c3m4m]

I do want to be smarter though with having my ‘savings’ work for me, dont just want it to work on something that will make me ose more in the long run

and I cant have this mentality much longer considering that I do want to buy property and start a family in the near future

so any advice/tips on where I should put it is appreciated

 

[SplinterMatic319]

Im riding SPACs till Valhalla or when there’s no good companies left to be acquired

 

[bangdak]

Very interesting to see all of the different perspectives. Like Ecook mentioned, it’s inportant that everyone sets realistic expectations. Have an idea of how much you’d like to allocate and then set realistic return goals based on your expected use of proceeds (i.e. saving for down payment, retirement, college funds, etc.).

Glad that we were able to open the door to discuss this and thankful for all of the knowledge that’s constantly being dropped here.

Be sure to constantly do your own homework and follow your instincts. We’re all trying to make money but we can’t let greed dictate our FOMO decisions.

 

[johnnyredstorm]

Great perspective all around on this page. Proud of y’all. Lot of stupidity in this market and we’ve got a team here focused on sustainable growth.

 

[xbiker47]

Laid off? I heard unemployment checks is where it’s at these days.

 

[antidope]

For me as long as I am outpacing inflation since inception I am good. IDC about relative returns at all. Down years are whatever to me either, I was down big in 2018 and it didn't phase me at all. Compounding will take care of the rest along with steady contributions.

To me what matters more is trying to get all my friends and family involved in this, I know that I am lucky to have the knowledge base that I do and the lack of fear concerning the market.