RealGM

So, rather than have this topic buried in the general chatter OT thread, I wanted to have a discussion about how/what people are investing in. Specifically, at this moment in time when the stock market is running at record highs and interest rates are going to rise.


International? REITs? Crowd funding real estate? Peer to peer?

I'd love to hear thoughts.

midranger wrote:So, rather than have this topic buried in the general chatter OT thread, I wanted to have a discussion about how/what people are investing in. Specifically, at this moment in time when the stock market is running at record highs and interest rates are going to rise.


International? REITs? Crowd funding real estate? Peer to peer?

I'd love to hear thoughts.

I’m all stocks all the time, at least until the Fed raises rates enough to make other places semi- competitive. I do have a lot of $ on the sidelines now, though, waiting for the correction that will come when it occurs to people that corporations never really paid 38% and won’t be doing much differently after the tax thing passes next week.

Not selling in anticipation of this correction; just waiting to buy more at better prices. If/When a 10-20% correction comes, I’ll look first to solid tech stocks like AMAT if I can make a case that they’re positioned to take advantage of whatever is coming next, as semiconductor equipment companies always seem to be.

I'm not much for market timing, but.... I agree that there has to be a correction on the not so distant horizon.

I've exhausted all the tax advantaged stuff I can and would like to start a taxable account, but I don't want to plunk a wad of cash in the market two weeks before a 20% correction.

Not an individual stock guy. More like low fee index funds. I figured with bank interest rates going up, maybe crowdfunded real estate loans would be more appealing, but I have no experience with them.

Just tell me what to short so I can do it.

SupremeHustle wrote:Just tell me what to short so I can do it.

Bitcoin.

right now im investing in the dallas cowboys, i think they can beat oakland

Don’t listen to your parents or your Luddite coventional banking friends: The world of Alt Coins is the future and it is here. Beware, however, as you must approach with a discerning eye.

As the automated vehicle, drones, AI et al become more entremched in ‘society’ stocks and mutual funds and 401k’s are a quicker becoming a thing of the past. They are confined, restrictive, and irresponsible. No market like the Alt Coin market has ever existed. If you do your homework and make the right long plays you can set yourself up for quite a long time. I’ll leave it at that. And, please, don’t ask a banker friend for advice. They’re clueless!

midranger wrote:I'm not much for market timing, but.... I agree that there has to be a correction on the not so distant horizon.

I've exhausted all the tax advantaged stuff I can and would like to start a taxable account, but I don't want to plunk a wad of cash in the market two weeks before a 20% correction.

Not an individual stock guy. More like low fee index funds. I figured with bank interest rates going up, maybe crowdfunded real estate loans would be more appealing, but I have no experience with them.

why not start investing in tangible assets? if you're maxing out 401K/Roth, i would definitely be looking into real estate for possible rental properties or areas where growth (in the long term) is pretty much a given.

if you have no interest in that, i'd just start fricking around with individual stocks/index funds in a brokerage account when the market is at a low. don't overthink it.

Just keep dollar cost averaging into a diversified portfolio. You can't time the market so why try.

I make little tweaks and have over-weighted international equities.

midranger wrote:

SupremeHustle wrote:Just tell me what to short so I can do it.

Bitcoin.

Think it's going to drop? I put in $200 earlier in the year and turned into $1,200 in my wallet. I thought for sure it topped out at 10k and would've sold if I had serious money but kept it in there for S&Gs. Not it's flirting with 20k. Who the hell knows? I think there is a long-term place for bitcoin, but not in my wildest dreams did i think it would hit this high. It will either keep going up, plateau, or go down. That's for sure.

It is amazing how easy retirement investing could be for most people. Just put as much as you can into your 401k in low cost index funds and do nothing else for 35 years. A lot of people get to scared of "investing" and either wait to set up their 401k or put too little in just because they are scared.
That's awesome Mid that you are at the point where you are above the deductible limits.

Anyone here go to MMM? Really helped me focus on controlling my spending and have a better understanding about my long-term goals.

http://www.mrmoneymustache.com/2012/01/13/the-shockingly-simple-math-behind-early-retirement/

MartyConlonOnTheRun wrote: It will either keep going up, plateau, or go down. That's for sure.

Thanks John Madden.

As far as what to short, throw a dart at a stock ticker. We're due for a correction.

Keep an eye on crypto currency. Bitcoin might have jumped the shark, but there are many other CCs out there with new ones being developed all the time. It's the underlying tech that's important.

A lot depends on your goals. Short term vs. long term. Retirement funds vs. non retirement.

Market timing will cost you money. People pulled out of the market 4 years ago because it couldn't possibly continue to climb. Of course there will be a correction at some point. Stay the course, the market will rebound.

Short term money though you obviously have to be careful. Best to keep it in a money market or safe bond fund. You won't make much but you'll preserve capital.

For funny money I play around in options. Sometimes some swing trading. I had fun doing some day trading but I simply don't have the time for it.

MartyConlonOnTheRun wrote:

midranger wrote:

SupremeHustle wrote:Just tell me what to short so I can do it.

Bitcoin.

Think it's going to drop? I put in $200 earlier in the year and turned into $1,200 in my wallet. I thought for sure it topped out at 10k and would've sold if I had serious money but kept it in there for S&Gs. Not it's flirting with 20k. Who the hell knows? I think there is a long-term place for bitcoin, but not in my wildest dreams did i think it would hit this high. It will either keep going up, plateau, or go down. That's for sure.

Asymptotic growth is not a sustainable trend.

midranger wrote:

MartyConlonOnTheRun wrote:

midranger wrote:Bitcoin.

Think it's going to drop? I put in $200 earlier in the year and turned into $1,200 in my wallet. I thought for sure it topped out at 10k and would've sold if I had serious money but kept it in there for S&Gs. Not it's flirting with 20k. Who the hell knows? I think there is a long-term place for bitcoin, but not in my wildest dreams did i think it would hit this high. It will either keep going up, plateau, or go down. That's for sure.

Asymptotic growth is not a sustainable trend.

Are you saying bitcoin getting returns of 100% weekly is not sustainable? Of course not, I think everyone would agree with that. But you didn't really answer my question.

There are two questions when 'investing' in bitcoin:
1. When will the huge growth stop?
2. Will it plummet or just level out?

I am in stocks all the time too. I never stop putting money in. As for individual stocks, I mostly buy Google, Amazon, and Facebook. I also put some money in other companies I like such as Home Depot and Verizon. I also have two guys managing some other money (our 401k guy and a Merrill lynch guy through my bank) which ends up going in a much larger variety of stocks and mutual funds.

I also flip houses so I have money constantly in real estate. I feel like I am super diversified but I have been hesitant about bitcoin or other similar currencies. Some of my friends and business partners are in but no one I know is going in with more than basically play money to them. I have no doubt it will be a thing but the rate at which it increased in value screams bubble so I haven’t pulled the trigger on buying in.

Two other things I am looking at are refinancing school loans as a conservative investment. I know a guy doing this now and you basically can get a 10% guaranteed rate of return but no potential for more. I have also looked into getting into the marijuana business quite a bit. The more I research it though the more it feels like the Wild West and at some point why wouldn’t Marlboro come in and murder the small time dispensaries and grow houses?

So for now, stocks, mutual funds, and real estate are my go to’s.

I have no idea about stocks. Just waiting for Kurty to take me under his wing and make me rich like him.

I'm just starting out in the world of investing having finished undergrad in 2016 and starting the first "real" job a few months later.

The issue I'm coming up against is understanding where to even begin. I've got pretty onerous student loan payments to be made every month which soak up a good chunk of my income, and I contribute double-digit percentage to my company 401k while also trying to build up a little nest-egg of savings.

Should I be looking to continue to lean out non-essentially expenses even more than I've already got them and then put that extra money into another investing vehicle?

I'll be curious to read along as the discussion evolves. Definitely want to get a big jump-start on saving and would like to make the right early decisions.

Matches Malone wrote:I have no idea about stocks. Just waiting for Kurty to take me under his wing and make me rich like him.

Lol, just start a company and blow that **** up. In reality that’s where most of my net worth lies and where I get any money to invest in other things. So there you go guys, take some money and build a company. I invested $500 to start. My two business partners did the same. We had $1500. Pretty crazy looking back. Best investment I ever made. Although it was mostly just investing in myself if you think about it.

feldm093 wrote:I'm just starting out in the world of investing having finished undergrad in 2016 and starting the first "real" job a few months later.

The issue I'm coming up against is understanding where to even begin. I've got pretty onerous student loan payments to be made every month which soak up a good chunk of my income, and I contribute double-digit percentage to my company 401k while also trying to build up a little nest-egg of savings.

Should I be looking to continue to lean out non-essentially expenses even more than I've already got them and then put that extra money into another investing vehicle?

I'll be curious to read along as the discussion evolves. Definitely want to get a big jump-start on saving and would like to make the right early decisions.

Get disability insurance if you don't have it. Get term life insurance if you need it (i.e. people dependent on your income), because that will only get more expensive. Don't buy permanent life insurance, ever. No, really. Never. Refinance your student loans. Try to scare up 5.5k to fund a Roth IRA.