Quote:
Originally Posted by LuvtheVillages
Because Jerome Powell, head of the Federal Reserve, has said that the goal is for interest rates to be more than the inflation rate.
There are more interest rate hikes to come.
If you decide to go fixed income, perhaps start moving just a portion of your funds, and add more later as interest rates increase.
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You should have got out a year ago. I got out all of my non-taxable stocks last January and have saved a lot of $$$ by doing so. I have never got out of the market when things got bad in the past but this is different. We haven’t seen the lows yet in this downturn, but you might be too late to sell.
The 60/40 method is for people that are scared about the market. I’m 100% in stocks/funds because that’s where you make your money. Some people will try to tell you that bonds are safer which isn’t true, in 2008, bonds went down almost as much as stocks, and the last few years bonds have performed terrible.
Even today, you can make some really good money in certain areas but you have to be more picky. I’ll get in to a fund for a couple months, make 6 digits, then get out and then get back in again when the timing is right. (I’ve done this twice this year alone). If you have cash on hand you can do this pretty easy, and if you do this in non-taxable accounts, you don’t have to worry about paying capital gains taxes.