With bonus season around; lot of the monkeys here should be getting good sums hitting their account within the next few months.
I keep hearing the market is overvalued (July 2021) and tbh the statistics paint a similar picture.
where would you guys invest right now? Discuss please.
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1 week TSLA Calls 60% OTM
Point taken- keep buying incrementally and don't try to time the market. But, this seems like excessive data mining to me... you aren't worried about investing at AN all time high, you're worried about investing at THE all time high. Problem is you don't know until it's too late.
Every all time high was "the" all time high for some period of time...
Even so, I have this phobia as well despite it not happening in the US yet. If you invested in the Nikkei in 2000, you wouldn't have gotten your money back for another 15 years. Stuff like that scares me
Yeah fair point. It's actually pretty wild how much data mining people do with this subject haha. I saw one study called "The Overnight Drift" about longing sp500 futures during globex hours and the euro hours instead of the cash hours and the former had much better returns or something. Obviously not practical but was pretty cool
Value stocks like $MAXR
Not SWPPX?
VTWAX is the real progamer move
I only really invest for cash flow. Don't like to speculate. Although I did just accept a $20K above asking price offer on our house with three full price backup offers. And it appreciated like $75K in the two years and one month we lived there. So no capital gains tax. So I'll take it when I can get it.
Dividend stocks like BTI and MO
All my savings in spy save for a emergency fund, I’m not worried about path risk, so i can take a 50% drawdown and its fine i care about where equities will be in 20 years
which is where, your holiness?
Higher than today brotha
GameStop. The squeeze is inevitable. The price is wrong.
Probably best to figure out your time horizons and diversify. Cryptos seem to be at a good price right now to buy as well for part of your portfolio.
Invest in multi-family. I always had a problem with the time management issue so find a cute girl at the bar. She thinks she’s going to become mrs right and make her your property manager for a year. This works surprisingly well and leads to interesting role play.
Sorry, to clarify, if you're really investing in multi-family, you need to already be married before doing this, right?
wtf
Lmao wtf
I'm seriously concerned with this as well in a similar situation. I don't care how long my time-horizon is, the thought of having to essentially lock away your hard-earned cash for a decade or more to recoup is horrifying and frankly a waste of time with your capital with so many opportunities out there. Honestly not sure how everyone seems to be so non-nonchalant with that here. Sure, you can't time anything in the market, but their seriously has to be better way then dumping my 100k into SPY, VTSAX, or whatever at these levels. I'm open ears to serious suggestions.
Currently researching how putting it all into a high-yield dividend player like utilities or AT&T. I'm sure there are some risks there too but happy to hear more on anyone's opinions regarding this.
What do you mean by this? If you buy a ETF, can’t you just sell it when you want to use that cash for something else/invest somewhere else
just trying to understand and better contribute to your point
No, so my point is if one were to buy in during a peak (let's say like 2007 for example) and then shortly after there was a crash/recession you would pretty much be forced to wait it out and hope you could recoup on the economy returning to normalcy. If you were to just sell your ETF in the middle of 2008 you would just screw yourself out of cash as you're now trying to time an upswing in the market with half the capital you originally had. You have to wait it out. Nothing to do with liquidity of ETF/mutual funds, does this make sense?
check out tobacco stocks for high yield. 7%+ yield. better play than at&t or a utitlity co imo. my portfolio right now is a combination of high yielding dividend stocks with an average yield of 6.5%. I own BTI, MO, PSTL, OPI, T, WPC, ENB, and O, but 50% of my portfolio is BTI and MO and the other 50% is those other stocks.
Interesting thank you. And you are not concerned about tobacco stocks losing value as traditional tobacco products/companies lose popularity? That's why I said things like at&t and utilities since we'll always use them. I guess what I'm trying to get at is if the stock itself losing value over the long run and overriding your gains on dividends is an issue?
Also are you reinvesting the dividends automatically back into the stock for more shares?
pltr and bx. i sell covered calls and CSPs on it.
Private debt funds are supa hot rn
anyone bought land/real estate or invested in private businesses? What was your experience?
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I've heard the market is overvalued and it's undervalued every time I've done market research with convincing supporting evidence on both sides, nobody knows for certain. I'll tell you where I am - 100% invested in diversified equity alongside clients (for funds outside of emergency funds)
abide by these principles and you should be OK
avoid risk of ruin by underdiversification and backing up the truck into new concepts (not saying you need 400 individual stocks, but you need to do better than 5 meme stocks plus SPY)
unless you're an experienced trader, don't play in derivatives
have a quality bias
know the difference between investment and speculation
get back to work so you can earn that next bonus
I might make a post it note of this - and every time I get another 'This is a great option play idea' I will slam it into my face as to avoid the inevitable stupid trade I try and make.
Idea of the day: Buy up some houses in rural areas close to recreation and AirBnB/long term rent them out. As work from home becomes more and more of a thing across industries and people have less and less kids (or have them later), I am pretty bullish on the idea that places located 1.5-2 hours away from major cities are going to see a lot of growth from a home value perspective and for AirBnB type rentals. Think smaller, non-ski towns outside of Salt Lake City, Denver, Boise, San Francisco, Portland, or Seattle. Or places up in the mountains outside of NY and Boston that haven't traditionally been the "hot" spots to stay (admittedly, I know much less about this market than the places out west). I have a hunch that more and more people are going to want to live a lifestyle of staying in different places around the US/world that offer great access to recreation for a couple months here and there. I used to be based out of one of those cities I mentioned above and every time I would see a 6 hour line of traffic heading into the city on Sunday afternoons I couldn't help but wonder how many of those people would rather just live in those towns they love to visit on the weekends and not have to mess around with that traffic.
I bought a .5 acre lot of land in a small town like I am talking about for 70k in December 2020 and another one that is very similar just down the road just sold for 120k.
what are you going to do with the land?
Build a house. Been talking with some general contractors in the area and based on what homes are selling for I figure I can create around 150-200k in equity just from the build alone. Waiting for materials to come down first though.
Housing starts and mortgage applications have slowed a bit in the last month or two, so it might be correcting already, but best of luck getting anything built in a timely or cost-effective manner. Building/remodeling demand is still pretty high, and contractors and building materials are not the easiest to come by in some parts of the country.
For perspective, this was exactly the thinking many thousands of budding RE investors and flippers had c. 2005-2007. Not that we're definitely headed for that type of asset correction again, but be careful and don't get too overextended.
Thanks for the insight. Fortunately, the land was bought with cash so no leverage there. Originally, I bought it with optionality in mind - if the market rallies I can sell it. If the market tanks it could be a vacation home with a small cabin on it, etc. Biggest thing was giving up the opportunity cost of 70k cash in my pocket but with how the market was acting and the specific location of this town I felt like taking the plunge was worth it. I’ll eat the lack of cash flows now for more down the line.
After talking with a few contractors it seems like I can get a decent sized house built with an unfinished basement for around 380-400k. Add in the cost of land and I’m around 450-470 all in plus whatever it cost me to eventually finish out the basement. Those same homes are going for 550-600 in the town I bought the land in. Figure once it’s built I can either sell it, rent it long term, short term rent it, or live in it just depending on what the market is doing. I work full time remote now and enjoy the lifestyle these places outside of big cities bring so living there as a last resort is something I’m actually considering doing anyways regardless of the market at the time it gets built. I am living in a van full time now as well so my expenses are about as low as they can get in today’s world.
As someone that has obviously put some thought into this and seen this play out before do you see any major flaws in this idea? Curious to hear your thoughts as I’m always wanting to get different takes and learn more.
I think as long as you're patient and the investment does not strain your personal finances in any way, you are fine. Getting overextended and having any fixed cost pressure or deadlines can make these side hustle real estate investments go from fun to agony, so avoid if at all possible. That being said, leverage can sure help maximize your return--especially when debt is so cheap. Just use it wisely.
I wouldn't discount construction risk (overruns, unforeseen complications), and prepare for the market to not be as hot once your construction is finished. It sounds like you're open to holding the property long term, which means you are patient (at least for now). That's good. That you view this property as a potential personal residence/vacation home in the future is a positive, too. I've done something similar with a larger rural lot that I've purchased and held. I've had to weigh the potential gain from selling it vs. my personal enjoyment of owning it, and for the time being, the latter is winning out.
This is already happening on a pretty massive scale in the areas north of Boston/New York. Homes and raw land are being snapped up above asking price faster than they can be listed--mostly by individuals from the city who want to buy second/third homes or have recreation land, but I have heard of at least a few investment firms working the trade you have detailed. It's been happening for almost a year now, and hasn't showed signs of cooling off yet. This has compressed the real estate market considerably in these places--houses and land are no longer readily available in some markets. There hasn't been a boom like this in these places since 2004-2006.
I wonder if it is any different out west? But yeah, I have seen what you are talking about. The towns I have been looking at lately just don’t have any decent sized lots for sale anymore and when they do pop up they go quick.
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