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What should you do with stock options during a recession?

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Re: What should you do with stock options during a recession?

#11

Post by nly »

JonChesterfield wrote: post #8
johnchristopher wrote: post #2

I'd like to know what to do with ~10 000 euros, right now. Where should I put it so it doesn't lose its value and keep a bit with inflation ? edit for a bit of context: Western Europe, renting, unlikely to be able to buy/invest into a house/flat, looking at gold ingots, not the nerve for crypto.

Buy something you want for 20000 and watch the debt inflate away?

So the theory here is if you know you're going to buy a $20K item in 2 years time, and you know it's going to go up in price in that time, you're probably better off borrowing the money and buying it now.

The problem of course is we often don't know either of these things, and having better cashflow, or a pile of savings, now might help you weather the coming storm.

Re: What should you do with stock options during a recession?

#12

Post by justapassenger »

johnchristopher wrote: post #2

I'd like to know what to do with ~10 000 euros, right now. Where should I put it so it doesn't lose its value and keep a bit with inflation ? edit for a bit of context: Western Europe, renting, unlikely to be able to buy/invest into a house/flat, looking at gold ingots, not the nerve for crypto.

No one can predict the future. But generally time in market is more important that timing the market. Works only if you invest long term.

Re: What should you do with stock options during a recession?

#13

Post by swagasaurus-rex »

sakopov wrote: post #9
johnchristopher wrote: post #2

I'd like to know what to do with ~10 000 euros, right now. Where should I put it so it doesn't lose its value and keep a bit with inflation ? edit for a bit of context: Western Europe, renting, unlikely to be able to buy/invest into a house/flat, looking at gold ingots, not the nerve for crypto.

Equities have been decimated. The housing market is starting to look like it's next. There is nowhere to hide right now.

Thank god?

Re: What should you do with stock options during a recession?

#14

Post by notch656a »

bombcar wrote: post #4
johnchristopher wrote: post #2

I'd like to know what to do with ~10 000 euros, right now. Where should I put it so it doesn't lose its value and keep a bit with inflation ? edit for a bit of context: Western Europe, renting, unlikely to be able to buy/invest into a house/flat, looking at gold ingots, not the nerve for crypto.

If you're not in the US (and Euros sounds European somehow) you don't have access to I bonds - which would be the safest bet. Perhaps there is something similar?

It's probably not worth the trouble, but I think anyone can start a US LLC and use the tax identification of that business to buy I-bonds.

Re: What should you do with stock options during a recession?

#17

Post by johnchristopher »

bombcar wrote: post #4
johnchristopher wrote: post #2

I'd like to know what to do with ~10 000 euros, right now. Where should I put it so it doesn't lose its value and keep a bit with inflation ? edit for a bit of context: Western Europe, renting, unlikely to be able to buy/invest into a house/flat, looking at gold ingots, not the nerve for crypto.

If you're not in the US (and Euros sounds European somehow) you don't have access to I bonds - which would be the safest bet. Perhaps there is something similar?

There's something similar but it's in the .9-1.5 interest rate before 30% off of the interests when it's due. In Europe I think you can't buy bonds from another EU country but you can buy eurobonds (which seems to be different but are still emitted by EU countries).

Re: What should you do with stock options during a recession?

#18

Post by jonas21 »

notch656a wrote: post #14
bombcar wrote: post #4

Earlier quoted context omitted.

If you're not in the US (and Euros sounds European somehow) you don't have access to I bonds - which would be the safest bet. Perhaps there is something similar?

It's probably not worth the trouble, but I think anyone can start a US LLC and use the tax identification of that business to buy I-bonds.

No, only individuals can buy I-bonds.

EDIT: that's not right. please see below.

Re: What should you do with stock options during a recession?

#19

Post by ISL »

johnchristopher wrote: post #2

I'd like to know what to do with ~10 000 euros, right now. Where should I put it so it doesn't lose its value and keep a bit with inflation ? edit for a bit of context: Western Europe, renting, unlikely to be able to buy/invest into a house/flat, looking at gold ingots, not the nerve for crypto.

It may be helpful to think through your intended holding period.

As a companion to the sibling comment recommending the Intelligent Investor (realize that index funds didn't exist when Graham wrote that), I'd keep in mind the mantra, "price is what you pay, value is what you get".

If the holding-period is decades, there are good arguments in favor of stocks/index funds. Shorter-term than that, it may be difficult to provide guidance with any real certainty.

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