The Money Mustache Community

Learning, Sharing, and Teaching => Investor Alley => Topic started by: Birchwood on January 18, 2014, 09:03:20 PM

Title: Where to put your investment money?
Post by: Birchwood on January 18, 2014, 09:03:20 PM
With the stock high, and the bonds maybe going down, and the cash with pathetic zero return, where do you guys put your investment money? ... Thanks,
Birchwood.
Title: Re: Where to put your investment money?
Post by: Frankies Girl on January 18, 2014, 09:10:39 PM
In the same asset allocation I set up at the beginning. Since I'm in the wealth build phase, I've got mostly a total market stock index as the main portion of my AA right now. Only reason I'd change is if I was getting ready to retire. Or if the market swings down, I'd try to find some cash to throw in there.

The market will always go up. Might be a bumpy ride, but the trajectory is up.
Title: Re: Where to put your investment money?
Post by: Khan on January 18, 2014, 10:12:53 PM
With the stock high, and the bonds maybe going down, and the cash with pathetic zero return, where do you guys put your investment money? ... Thanks,
Birchwood.

With the stock market high... ergo market timing.

What's the number one rule about market timing? If you try it you will fail at it. Smarter minds then you have attempted it. They have not succeeded.

And on top of that, there are multiple markets, and a hell of a lot of stocks. The S&P 500 is sitting at somewhere around a 19.5 P/E ratio, not exactly expensive historically.
http://www.multpl.com/

And that's the S&P 500. The entire stock market encompasses a hell of a lot more stocks then that.
Vanguard value(VTV etf) is at a P/E of 14.
Vanguard dividend growth appreciation(VIG etf), pays a 1.9% yield and has a TTM P/E of 17

There are different markets. Emerging markets(BRIC), Japan, Asia, europe. There are REIT's and bonds.

Invest in equities to your risk tolerance. If the market goes down, DRIP plans get you more rewards. If the market goes down, buy more stocks. Do not, -not- invest in the market.

We need a sticky that says market timing is -NEVER- the answer.
Title: Re: Where to put your investment money?
Post by: Emilyngh on January 19, 2014, 06:26:26 AM
With the stock high, and the bonds maybe going down, and the cash with pathetic zero return, where do you guys put your investment money? ... Thanks,
Birchwood.

Eh, maybe the stock market is low and bonds may be going up?   WTH knows, not I.   My asset allocation is a mix I'm comfortable and plan on re-balancing and maintaining:

50% US market index funds
25% International index funds
25% short term bond index funds



Title: Re: Where to put your investment money?
Post by: DrTesla on January 20, 2014, 01:58:32 PM
So if I buy Gold now while it's low. You are saying that I will lose money if I am patient and let it go higher then sell it?

Value, defines all business and even all jobs. Value changes with time.

Even job creators/employers buy more workers when the market timing is right and the values are low.



Title: Re: Where to put your investment money?
Post by: Emilyngh on January 20, 2014, 02:52:05 PM
So if I buy Gold now while it's low.

How do you know gold is now low?   If it drops significantly in the future, wouldn't that mean that it's actually high?