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Learning, Sharing, and Teaching => Investor Alley => Topic started by: CoffeeR on August 23, 2019, 08:55:52 AM

Title: Will you change your investing AA if Trump gets his way with the Fed?
Post by: CoffeeR on August 23, 2019, 08:55:52 AM
So, will you change your investing asset allocation, IPS, (anything investing related) if Trump gets his way and is able to remove the Fed chairman (or otherwise curb his power) and put a shill in his place?
Title: Re: Will you change your investing AA if Trump gets his way with the Fed?
Post by: bbates728 on August 23, 2019, 09:35:43 AM
No, I find stock/allocation picking to be tedious and not worth the risk. I will continue my current allocation of 100% equities until I stop earning money and then I will transfer over to a 90/7/3 stock/bond/cash strategy. What about you @CoffeeR ?
Title: Re: Will you change your investing AA if Trump gets his way with the Fed?
Post by: ecchastang on August 23, 2019, 09:47:21 AM
So, will you change your investing asset allocation, IPS, (anything investing related) if Trump gets his way and is able to remove the Fed chairman (or otherwise curb his power) and put a shill in his place?
Curious, what would you recommend?
Title: Re: Will you change your investing AA if Trump gets his way with the Fed?
Post by: Laserjet3051 on August 23, 2019, 10:16:08 AM
absolutely not.

My AA, IPS, and overall investing strategy is not subject to change as a result of current, presumed, or projected, politics. Enacted legislative changes that may impact the tax code or how business is regulated in the US, may impact it (e.g. shift from trad to Roth IRA).

Title: Re: Will you change your investing AA if Trump gets his way with the Fed?
Post by: Buffaloski Boris on August 23, 2019, 02:35:35 PM
Not really. Iím just thankful for the added volatility the angst causes.

Step 1: President sends out tweet.
Step 2: the chumps market retires to its fainting couch.
Step 3: prices of equities drops for a day or so.
Step 4: my limit order gets filled.


Title: Re: Will you change your investing AA if Trump gets his way with the Fed?
Post by: harvestbook on August 23, 2019, 04:53:23 PM
He's already getting his way with the Fed. Do you think an impartial, apolitical, bland group of economists would lower rates in this environment when we keep getting told "Everything is great! (except we don't dare normalize Fed policy and raise interest rates in the face of the Best Economy Ever!!!...")

I figure all the extremes wash out in the long run, and any move based on guesswork is likely to be wrong anyway.

Shorter version: This, too, shall pass.
Title: Re: Will you change your investing AA if Trump gets his way with the Fed?
Post by: CoffeeR on August 23, 2019, 05:43:28 PM
So, will you change your investing asset allocation, IPS, (anything investing related) if Trump gets his way and is able to remove the Fed chairman (or otherwise curb his power) and put a shill in his place?
Curious, what would you recommend?
I ask because I am not sure. Unless I have evidence that I should do something, I will not do anything to change my AA.
Title: Re: Will you change your investing AA if Trump gets his way with the Fed?
Post by: CoffeeR on August 23, 2019, 05:45:36 PM
No, I find stock/allocation picking to be tedious and not worth the risk. I will continue my current allocation of 100% equities until I stop earning money and then I will transfer over to a 90/7/3 stock/bond/cash strategy. What about you @CoffeeR ?
I am 65% stocks / 35% bonds. As things stand right now, I will not make changes *except* to grow more conservative as I get close to the RE part of FIRE. How conservative? I am honestly do not know.
Title: Re: Will you change your investing AA if Trump gets his way with the Fed?
Post by: MaaS on August 23, 2019, 06:43:38 PM
No, but I'll be very concerned. The Fed under complete control of politicians would be... terrifying.

Equities could really go either way in that scenario.
Title: Re: Will you change your investing AA if Trump gets his way with the Fed?
Post by: PDXTabs on August 23, 2019, 08:21:31 PM
No, and I'm global market cap weighted so only 55% of my assets are in the USA.

But I'm completely prepared to see the markets drop by 70% and for the currency to get devalued.
Title: Re: Will you change your investing AA if Trump gets his way with the Fed?
Post by: seattlecyclone on August 23, 2019, 09:11:57 PM
No. Trump is temporary. The main point of picking an asset allocation, investment policy, etc. in advance is so that you have a plan for how to react to temporary imbalances in the markets. I'm roughly 80/20 stock/bond right now as a newly FIREd person, and plan to maintain that allocation indefinitely.
Title: Re: Will you change your investing AA if Trump gets his way with the Fed?
Post by: powskier on August 24, 2019, 11:43:03 PM
The Emperor has no clothes. Don't pay attention to him, it's all he craves.
Carry on.
Title: Re: Will you change your investing AA if Trump gets his way with the Fed?
Post by: DaveSch on August 25, 2019, 06:12:57 PM
My AA is determined by my personal preferences, and not external factors, such as have been mentioned here. I use my age, and risk tolerance as well as projected income needs.
At 69 y/o, I am at about 60% stocks, and 20% bonds and cash. All non cash investments are in low cost mutual funds and ETF's. I note the end of each day results, then do something else.
I can financially handle a "great depression" style downturn without having to adjust my lifestyle. I suppose my heirs would be less than happy. :)
Title: Re: Will you change your investing AA if Trump gets his way with the Fed?
Post by: theolympians on August 25, 2019, 07:04:18 PM
"shill in his place"? What does that mean?

Anyhoo, no changes to AA. Not going to react moment to moment.