Will the stock market be safe the rest of the year????

Long story short I made a large sum of money earlier in the year from trading and now that I’m an analyst I’ve just left the entire sum to grow in VOO tax deferred as I haven’t paid any taxes on it yet as I wanted to take advantage of more growth before having to pay. 
 

I plan to pay the taxes as early possible in January of next year for 2021 once I get my W2 and all that. 
 

Will the stock market be safe for at least just the rest of the year or should I pull out and just let it rot in cash? I know I could always sell before year end in the event of a downturn and use the losses to offset the gains for taxes, but really would prefer not to. Another benefit by waiting until January to sell is that the profits for that year will be 2022 income and I can use that income to pay 2021 taxes as I’m already overpaying taxes in 2022 from half of my eventual bonus being withheld.

Any thoughts????

19 Comments
 

A.   NO ONE knows

B.  If you have a 6+ safety net if cash saved, then dollar cost average your investments over a few weeks into your prefers investment.  Ideally something like a total market index fund.
 

Don’t try to time your entry or exit further than DCAing in or out of the market  

Edit:  I see you need some of it at the beginning of’22.  Don’t invest those needed funds in equities for that short of a period.

 

I'm not looking to time anything by any means just need the money by Jan next year. You saying I should sell? I just don't see why the markets would crash? I may be missing something but midcap and small caps have corrected pretty much the last few months. The only reason the index is at ATH is because of the few large caps. We've had our COVID black swan event, I don't see the fear that people keep saying other than "well, it's so much higher than 5 years ago"

 

I'm not looking to time anything by any means just need the money by Jan next year. You saying I should sell? I just don't see why the markets would crash? I may be missing something but midcap and small caps have corrected pretty much the last few months. The only reason the index is at ATH is because of the few large caps. We've had our COVID black swan event, I don't see the fear that people keep saying other than "well, it's so much higher than 5 years ago"

CAPE at >35, market leaders at EV/Sales of >8x, priced for perfection, etc. (tesla at 700B… )

Taper talk, harder yoy benchmarks for Q3/4

 

It’s not going to crash. We might be in store for a correction but nothing more. The 2/10 year treasury is pretty steep and we only crash after an inversion. And if the FED announces tapering that still means we are going to see hundreds of billions of stimulus over the course of the next year (it’s all anticipated and therefore priced in so I wouldn’t worry about that). On top of that we are in an inflationary environment at the start of a new bull market cycle (seen through the recovery from covid crash and the rally of banks earlier this year). If you need cash now then you need cash now. Nothing you can do about that. But from the look of things we are in the beginning of a new bull cycle which lasts typically many, many years. I wouldn’t let fear of a crash dissuade you from the equity market as a whole.

 

That’s what I think. We might have a couple small corrections here and there but nothing great than 10% and those are just opportunities to buy in a what seems to be new bull cycle

 

It amazes me how you work in this industry and expect A) someone to know this answer, and B) someone who knows this answer to tell you on the internet where a bunch of other competitors would happily use that as an edge.

 

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