Money market same as cash? Not sure where you get that info but I have millions in a money market making more than 5% and have for years. It did go down a few months ago to 4.9% but came back up, which is still better than any cash savings account.
As for sky high market, I made a large 6-digit gain in earnings the day after the election a week ago with the rest of my money invested in index funds and a couple stocks.
If you got out of the market in 2007/2008 and in 2020, you missed some of the best comebacks. The 2007/2008 collapse took longer to recover but in 2020, we all knew it was going to a ‘v’ shape recovery and I doubled my money by staying in.
Today, I look at the world economy, and our current political and economic environment before looking at stock market tea leaves to get a feel about the market. I sold everything at its highest point in late 2021 and moved everything to money markets earning 5.x% because of our policies and incoming inflation. In 2023 I started getting back in slowly and by December 2023, I had the majority of my money in index funds and a few stocks. This has been a banner 12 months. As for charts/reports on the market, what did the tea leaves tell you about Apple, meta, nvidia, tesla 1.5 years ago? I got into these over 1.5 years ago when meta and tesla were < $100 a share, Apple in the $120’s, and I can’t remember what nvidia was before the split. I sold some of these a couple months ago with nice profits to get back into more stable index funds making 30+%.
People’s feelings today are exactly what happened in 2016. Back then, A lot of people were scared and sold, others like me, bought more or stayed fully invested.
When people get scared about market evaluations, that’s when you make money in the market. The only issues I see now are: we should not be lowering rates because we aren’t done with inflation, consumers have the largest credit debt in history and defaults usually follow, the wars, and investors making too much hype out of AI, the same way they did about .com in the early 2000’s and we know what happened then.
I have no problem hitting the sell button and moving everything back into money market if any of these issues get worse.
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