I'm going to mostly cash in Long-Term portfolio

Discussion in 'Trading' started by qlai, Nov 19, 2021.

  1. newwurldmn

    newwurldmn

    thankfully from 2016-2020 we had fiscal responsibility and a shrinking deficit!
     
    #31     Nov 19, 2021
    Sweet Bobby likes this.
  2. lwlee

    lwlee

    SP500 5 and 20 year charts. Just looking at it seems so stratospheric. Think about it, an entire generation has never really known a downturn. Pandemic just seemed like a buying opportunity. Pandemic lows didn't even go below 2016 highs!

    [​IMG]

    [​IMG]
     
    #32     Nov 19, 2021
    qlai likes this.
  3. Oh dear. This is a terrible decision. Inflation is going to eat at your cash. No, no, no. If you want to live in a corner, fine.
     
    #33     Nov 19, 2021
  4. Nobert

    Nobert

    Sounds like one yahoo article too many.
     
    Last edited: Nov 19, 2021
    #34     Nov 19, 2021
    formikatrading likes this.
  5. You are clueless.
     
    #35     Nov 19, 2021
    Nobert likes this.
  6. Overnight

    Overnight

    Sweet Bobby, back from the dead. So what is your advice? Inflation is going to eat cash, so cash is bad. Where should we put our cash to lose it?
     
    #36     Nov 19, 2021
  7. R1234

    R1234

    Back in the 70s/early 80s (prior occurrence of inflation) bank rates were in the 5% to 10% range with a foray into the teens. So back then, being in cash was an alpha adding 'strategy'. Now its neither alpha adding nor a hedge, as hedges are supposed to gain in value as your main holding loses value. We're in uncharted territory here with zero and, in some countries, negative rates in the face of ramping up inflation worldwide. I personally feel a strong urge to keep as little money in the bank as possible - currently my net worth is the most invested it has ever been and has the least % cash ever. I have strict rules to exit my investments and go short or to cash during downturns so I don't lose sleep over it. To me, keeping cash in the bank is not the way to go as you are functionally losing about 6% to 10% of your balance every year due to inflation, depending on which inflation numbers you are looking at.
     
    #37     Nov 19, 2021
  8. VicBee

    VicBee

    I put mine and wife's to cash 2 weeks ago. To date hers is back at exit date, so no change.
     
    #38     Nov 20, 2021
  9. Not necessarily. If that were the case, one should invest 100% in the hedge vehicle.

    Hedging is to "offset losses" somewhere else... not necessarily 100%.

    Besides, a cash hedge is more of a temporary position.
     
    #39     Nov 20, 2021
    qlai likes this.
  10. Specterx

    Specterx

    It's going to be tough to see a sustained market de-rating with the Fed printing $100bn a month and rates at zero. Feels like we can go much, much higher.
     
    #40     Nov 20, 2021