No where to run to, nowhere to hide, eh?
Risk.....
One could write a small book about the state of investments today. Money market funds are backwards/dead monies, except for short term parking, pending other choices. Too many equity sectors are hot and interest rates/yields have trended up in recent months.
We don't re-balance our portfolio based upon end of year or other time frames. The markets help establish any changes.
We're at 45% equity and 55% bonds at this time. Yes, we could have found investment glory changing some investments at the being of April, 2020. But, we stayed firm throughout the year. Everyone has there own assessment of risk. There are 1,000's of combo portfolios among those at this forum. I won't agree with some of the choices, as well as many would not agree with our choices. Tis the nature of the investment beast.
Cheap money and those investing on margin..... I don't have any data about how much hot money is in the market place; using margin or otherwise. Reportedly, there are about 13 million Robinhood accounts in the U.S. I don't know how much money these accounts are managing. More to this point is that I will presume much of this money is narrowly targeted to narrow sectors or stocks within those sectors. Twitter feeds have likely pushed a lot of this money in the past year. I don't imagine many of these folks are reading the WSJ or similar publications.
Lastly, is that we generally have little concern for investing choices based upon elections or politicians. The machinations of Congress and the government in general move along with their compromises and decisions. Many of these actions have slow moving parts that may cause some changes in a longer term investing environments.
However, some of our investment considerations going forward as of January 4 find a new set of circumstances that are beyond the normal, at this time; and just when we thought that Covid was the primary game changer. The Georgia Senate election and what FORM of government will find it's place in the next two weeks weighs upon investments changes at this time.
Wishing all of you well; for a variety of reasons.
Catch
Comments
FOGMAK? Frikkin' Organic Grotchkies Made As Kiwi?
After a good Market year, we began last year to give ourselves permission to take and use SOME of our profits. Growing up not just dirt-poor, but shit-poor, leaves its mark on everyone who suffers through such an upbringing. So, between us, priorities are quite different. The truism that "spenders and savers attract each other" is certainly true in our case. And though we have a nest egg, "wealthy" could not ever be applied to ourselves.
But as for me: when you're finally where you want to be, the other stuff isn't such a big deal. So, our portfolio will never light the world on fire, either. But we DO use January on the calendar to "take some off the top" and use it for what we've decided upon. But after a bad market-year, we certainly do not need to take that stuff "off the top." That would be like shooting yourself in the foot. I suppose after all these years, I should be accustomed to wifey's inability to plan ahead. Her limit on that score seems to be about 3 weeks. And then things might change entirely. Good thing I'm the "money man," between us.
From a Barron's article last week.
I was able to read this without a subscription. Link
Some Quotes from the article (linked): How Central banks are planning for the year ahead:
ultra-low-interest-rates-here-to-stay-2021-central-bank-guide
Broad based etf categories
Regards,
Catch
treasury-yields-reach-1-nasdaq-futures-tumble-markets-wrap
Will be patient for awhile since there was more uncertainty With the unemployment number released last week. The country needs to act fast on vaccination in order to stem the rapid rising COVID cases. We learned how devastating lockdowns can be.