Talk of The Villages Florida - View Single Post - Got Cash????
Thread: Got Cash????
View Single Post
 
Old 07-24-2025, 09:10 AM
CoachKandSportsguy CoachKandSportsguy is offline
Sage
Join Date: Jan 2019
Location: Marsh Bend
Posts: 3,747
Thanks: 653
Thanked 2,750 Times in 1,333 Posts
Default

From my daily financial readings, and I don't have data to back it up, the current market gain was more due to retail investment than professional investment.. . . ok, well done retail investors!

yes, I moved some money from investments to cash as the account was weighted too heavily to equities for our ages and risk tolerances. Fidelity advisor agreed, even though we disagreed on the annual outlook. .

For the 60e/40b folks, remember that the bonds gained for 40 years from the highs @1982, to the lows @2022, so the portfolio gain was both equity (e) plus bonds(b) . . that era is now gone for bonds, so the recommendation might be for more equity, but that just raises your portfolio risk, and in retirement, that might not be the best. .

Other equity bond like investments are:
1) Utility stock ETFs
2) Low beta good dividend large cap ETFs
3) Preferred shares with interest/dividend ETFs
4) Reits with good dividends and a good track record. .
avoiding commercial properties, focusing on a particular sector with quality recurring earnings.


The problem with equity risk is that many times the event is unpredictable and different each time, such that people aren't watching for that event in the financial world. Many times, risk also happens very fast, and not everyone can exit timely, especially retail. This time, I would be watching governmental bonds, US exchange rates, and international relations. the rise of nationalism may produce some unexpected results, particularly in unexpected areas, as well as the rise in socialism, which results in much worse conditions. . example South Africa. .

good luck we all need it in retirement