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Idk if this belongs at HN but if it does, then isn't this the greatest opportunity post 2008 crash to invest in to the markets?
Idk if this belongs at HN but if it does, then isn't this the greatest opportunity post 2008 crash to invest in to the markets?
I'm in an interesting position related to this. In Canada, most people lock into their mortgage rate for 3-5 years. After that, you've got to renegotiate a rate but you're also free to switch banks. It's like starting over again at whatever you currently owe. I locked into mine 4 and a half years ago, so renewal is coming up this summer. Meanwhile, my home's value has skyrocketed (thanks to an insane Toronto housing…
Bonds and stocks have been fairly non-correlated over recent years, but this hasn't always been so. It's great for modern portfolio theory (i.e., holding a portion of stocks and bonds and rebalancing periodically). There's no guarantee that it will stay this way.
Anyway, I'm not giving investment advice, but I think the current market panic is short term and non-systemic, so it's not a terrible idea to consider rebalancing from bonds into stocks while the prices are good. If you think the market might keep dropping, then perhaps wait a little longer.
The truth is that trying to time the market is like throwing a dart at a board blindfolded, so you might as well take advantage of the current state instead of speculating about the future.
- Should I consider to take less bonds?
- Is lump sum a good idea, or should I DCA?
[1] https://www.ishares.com/uk/individual/en/products/251882/ish...
[2] https://www.ishares.com/uk/individual/en/products/291772/ish...
Idk if this belongs at HN but if it does, then isn't this the greatest opportunity post 2008 crash to invest in to the markets?
I'm in an interesting position related to this. In Canada, most people lock into their mortgage rate for 3-5 years. After that, you've got to renegotiate a rate but you're also free to switch banks. It's like starting over again at whatever you currently owe. I locked into mine 4 and a half years ago, so renewal is coming up this summer. Meanwhile, my home's value has skyrocketed (thanks to an insane Toronto housing…
It would not be prudent to invest the majority of your wealth into a recently broken bull market trend and try to catch the falling knife so to speak.
The markets could recover in 10 years, or they could bleed out for another 10 years.
If you actually had any inkling of which way the markets would move... you'd be retired already.
I'm about to start investing with lump sum next week since stocks looks cheaper. I was thinking to go with 80% SWDA (global stocks [1]) and 20% AGGU (global bonds[2]). I'm a non US resident. - Should I consider to take less bonds? - Is lump sum a good idea, or should I DCA? [1] https://www.ishares.com/uk/individual/en/products/251882/ish... [2] https://www.ishares.com/uk/individual/en/products/291772/ish...
There's a lot of research on lump sum vs. DCA, which is summarized here: https://www.bogleheads.org/wiki/Dollar_cost_averaging
Earlier quoted context omitted.
The recent drop is not very significant (a little over 10%). The Great Financial Crisis caused a 60% drop around 2008/2009. https://www.nytimes.com/2020/02/27/business/what-is-a-stock-...
The recent drop happened in only one week, it was really abrupt and breaking records. GFC didn't happen over 1 week, the bear market from GFC was from October 9/10, 2007 to March 9, 2009.
Earlier quoted context omitted.
Yields have been declining since the 80s [0]. It could be the greatest opportunity, but a trade like that might take a lifetime to pan out. [0]: https://fred.stlouisfed.org/series/IRLTLT01USM156N
Try 700 years. https://www.visualcapitalist.com/700-year-decline-of-interes... Betting against rate decreases in the long term is likely a terrible financial decision.
Earlier quoted context omitted.
I'm in an interesting position related to this. In Canada, most people lock into their mortgage rate for 3-5 years. After that, you've got to renegotiate a rate but you're also free to switch banks. It's like starting over again at whatever you currently owe. I locked into mine 4 and a half years ago, so renewal is coming up this summer. Meanwhile, my home's value has skyrocketed (thanks to an insane Toronto housing…
I know someone who did this. It didn't work out and it's their single biggest financial regret in life.
The sad part is one guy will post their success of doubling their student loan, and it will just cause a bunch of younger inexperienced 19 year olds to lose tens of thousands to their own gambles.
It's really sad. It's an addiction