11–20 of 24 posts
starting a business (that produces things people need rather than want) as far as investments like stocks or bonds... i am largely sitting in cash since the invasion of ukraine. when things get bad enough (and the fed pivots) then i will buy stocks. or you could just DCA if predicting macro trends isn't a fun filled activity for you (it is a hobby of mine).
Why do you believe holding cash is a good idea?
Be greedy when others are fearful and be fearful when others are greedy.
starting a business (that produces things people need rather than want) as far as investments like stocks or bonds... i am largely sitting in cash since the invasion of ukraine. when things get bad enough (and the fed pivots) then i will buy stocks. or you could just DCA if predicting macro trends isn't a fun filled activity for you (it is a hobby of mine).
Inflation is the highest it’s been in nearly two generations. Why do you believe holding cash is a good idea?
They said buy a business, and/or stocks at the right time.
starting a business (that produces things people need rather than want) as far as investments like stocks or bonds... i am largely sitting in cash since the invasion of ukraine. when things get bad enough (and the fed pivots) then i will buy stocks. or you could just DCA if predicting macro trends isn't a fun filled activity for you (it is a hobby of mine).
Inflation is the highest it’s been in nearly two generations. Why do you believe holding cash is a good idea?
During a downturn with rate hikes, a possible sovereign debt crisis and commodities/inflation possibly moving higher, look at high yield treasury bonds
max out series i bonds - $10k per person or company - 9.62% yield atm - state tax exempt
if you have a lot of extra cash and no debt or low interest fixed rate debt, then park it in a no penalty CD, savebetter is paying 3% CD atm, no penalty, withrdaw anytime then park the rest in 2-2.5% savings accounts atm
starting a business (that produces things people need rather than want) as far as investments like stocks or bonds... i am largely sitting in cash since the invasion of ukraine. when things get bad enough (and the fed pivots) then i will buy stocks. or you could just DCA if predicting macro trends isn't a fun filled activity for you (it is a hobby of mine).
Inflation is the highest it’s been in nearly two generations. Why do you believe holding cash is a good idea?
I'm not advising anybody what to do, but the argument is that you'll be able to find good investments for a heavily discounted price if there's some real economic panic and everything crashes for a while.
The inflation loss you take from holding cash for a bit might be more than offset if/when the economy recovers and you've got something at a steep discount.
Short it directly, or buy a short ETF, or buy put options
If you are sure about the recession and expect the stock market to crash, you could short it. Short it directly, or buy a short ETF, or buy put options
- When you buy a stock normally you can basically hold it indefinitely even when the price tanks. When you short a stock and it goes up, at some point your broker will have to force you to recall your position and you'll have to realize your losses
- When you buy a stock normally the maximum amount you can lose is the original investment amount. When shorting a stock, before a forced recall, in theory the downside is unlimited (and the upside is limited).
- stonks go up (in markets that are generally doing fine), so in general it's not a good idea to keep a short position on markets (unless you believe the country in question is trending towards destruction). A recession may come but stocks don't necessarily have to reflect the actual economic conditions in the short term.
In general, I'd say use it sparingly. Probably not a sound "investing strategy" but more of a short to mid term speculation tool, or a tool for hedging long positions.
starting a business (that produces things people need rather than want) as far as investments like stocks or bonds... i am largely sitting in cash since the invasion of ukraine. when things get bad enough (and the fed pivots) then i will buy stocks. or you could just DCA if predicting macro trends isn't a fun filled activity for you (it is a hobby of mine).
Inflation is the highest it’s been in nearly two generations. Why do you believe holding cash is a good idea?