Comments on: I Have Cash! Is Now a Bad Time to Invest?! https://clippingchains.com/2020/03/09/i-have-cash-is-now-a-bad-time-to-invest/ Funding the Adventurous Life Sun, 21 Feb 2021 15:23:36 +0000 hourly 1 https://wordpress.org/?v=7.1.4 By: aikibujin https://clippingchains.com/2020/03/09/i-have-cash-is-now-a-bad-time-to-invest/#comment-1660 Sun, 15 Mar 2020 21:52:24 +0000 https://clippingchains.com/?p=4157#comment-1660 In reply to steveark.

This is all personal opinion, but I would not put another 300k into equities just now. The market is not experiencing a simple correction, this seems to have a high probability to turn into a full-on recession that will take years to recover from. The fed and the government is doing everything they can to prevent it, and there is a chance that they will succeed. But currently my bet is that the market cannot win against this once-every-hundred-year disaster.

]]> By: Mr. Clipping Chains https://clippingchains.com/2020/03/09/i-have-cash-is-now-a-bad-time-to-invest/#comment-1659 Tue, 10 Mar 2020 13:04:22 +0000 https://clippingchains.com/?p=4157#comment-1659 In reply to aikibuijn.

10% is cash is high, but not crazy. For some people that’s what keeps them comfortable. I’d say Mrs. CC is on that end of the spectrum, while I prefer to go heavy on equities and ride the roller coaster. Your option strategy, etc definitely can carry some risk, as we discussed, but at least you sound like you are keeping the exposure minimized. Let’s face it though, we all fell off a cliff in the last two weeks! That’s just the name of the game sometimes.

]]> By: Mr. Clipping Chains https://clippingchains.com/2020/03/09/i-have-cash-is-now-a-bad-time-to-invest/#comment-1658 Tue, 10 Mar 2020 12:59:43 +0000 https://clippingchains.com/?p=4157#comment-1658 In reply to steveark.

That’s quite the cash reserve! I agree: may not be the best, but it’s decent. Time will tell.

]]> By: aikibuijn https://clippingchains.com/2020/03/09/i-have-cash-is-now-a-bad-time-to-invest/#comment-1657 Tue, 10 Mar 2020 04:25:21 +0000 https://clippingchains.com/?p=4157#comment-1657 We actually talked about this on the way to Shelf I believe, but I have been holding on quite a bit of cash since Dec because I felt uneasy going into equity with the high stock valuation back then. I had about 10% of my total portfolio in cash, and I was selling cash-secured put options to generate some return. I was getting about 1-2% return on a monthly basis, which was definitely a lot better than a savings account. Once the volatility in the market started going through the roof, I’ve also started doing some riskier option trades using 2.5% of my total portfolio, as well as buying an inverse ETF (SH) with 2% of my total. I’m still doing cash-secured puts with about 5.5% of my total portfolio. My total portfolio took a cliff dive because I was still quite heavily invested in equity, but at least my active trading account is doing better.

]]> By: steveark https://clippingchains.com/2020/03/09/i-have-cash-is-now-a-bad-time-to-invest/#comment-1656 Tue, 10 Mar 2020 01:54:22 +0000 https://clippingchains.com/?p=4157#comment-1656 I threw another $300K in index funds Friday that had been sitting in money market. If the market keeps falling I’ve got another $300K to also move into the market. It may not be the best time to buy but it looks like at least a decent time to me.

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