Where do you Invest in Good Economy like this ?

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johnpau
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Where do you Invest in Good Economy like this ?

Post by johnpau » Fri Jun 08, 2018 11:57 am

Where do you plan on Investing in Good Economy like this ?

I meant which part of the economy ( stocks,bonds,CDs,Real Estate,cash,..)
Last edited by johnpau on Fri Jun 08, 2018 1:47 pm, edited 1 time in total.

EnjoyIt
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Re: Where do you Invest in Good Economy like this ?

Post by EnjoyIt » Fri Jun 08, 2018 12:01 pm

In said economy.

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Toons
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Re: Where do you Invest in Good Economy like this ?

Post by Toons » Fri Jun 08, 2018 12:04 pm

Vanguard Lifestrategy Conservative Growth.
Vanguard Tax Free Intermediate Term.







😉
"One does not accumulate but eliminate. It is not daily increase but daily decrease. The height of cultivation always runs to simplicity" –Bruce Lee

johnpau
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Re: Where do you Invest in Good Economy like this ?

Post by johnpau » Fri Jun 08, 2018 12:06 pm

EnjoyIt wrote:
Fri Jun 08, 2018 12:01 pm
In said economy.
:D :D

I meant which part of the economy ( stocks,bonds,CDs,Real Estate,cash,..)

asif408
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Re: Where do you Invest in Good Economy like this ?

Post by asif408 » Fri Jun 08, 2018 12:14 pm

I invest more in bad economies. Bad economies as a whole usually provide better stock market returns going forward than good economies. You just might have to wait a while for it to happen, and some of those bad economies are really bad and could disappear.

johnpau
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Re: Where do you Invest in Good Economy like this ?

Post by johnpau » Fri Jun 08, 2018 12:21 pm

asif408 wrote:
Fri Jun 08, 2018 12:14 pm
I invest more in bad economies. Bad economies as a whole usually provide better stock market returns going forward than good economies. You just might have to wait a while for it to happen, and some of those bad economies are really bad and could disappear.

You are correct. That's the hard lesson we learned after the last 2008 recession. Repenting why we haven't jumped into stocks/RE in 2012 :confused

md&pharmacist
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Re: Where do you Invest in Good Economy like this ?

Post by md&pharmacist » Fri Jun 08, 2018 12:40 pm

I am looking at and/or own: INPIX, DXQLX, SMPIX, UGPIX, FSPHX, FSMEX, FSRPX, PSGAX, MSEGX. Well diversified, strong mix. Yes, higher expense ratios. If you do your research, you'll find the funds with the lower expenses have poor relative performance.

Focus on strong 3-10 year returns if you don't like regular reevaluation.

I also personally invest in my own business and commercial real estate at this time.

Good Luck!

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Earl Lemongrab
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Re: Where do you Invest in Good Economy like this ?

Post by Earl Lemongrab » Fri Jun 08, 2018 12:52 pm

It's not entirely clear what you are asking. I have a portfolio that I initially designed in 2007. I have made a few changes, mainly reducing the stock percentage based on progress towards goals. It's been the same for the past 4-5 years.

I don't try to outguess any market, so the economy is of little interest in that regard.
This week's fortune cookie: "Your financial life will be secure and beneficial." So I got that going for me, which is nice.

delamer
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Re: Where do you Invest in Good Economy like this ?

Post by delamer » Fri Jun 08, 2018 12:55 pm

What goal are you investing for?

3funder
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Re: Where do you Invest in Good Economy like this ?

Post by 3funder » Fri Jun 08, 2018 12:55 pm

In global stocks and US bonds.

asif408
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Re: Where do you Invest in Good Economy like this ?

Post by asif408 » Fri Jun 08, 2018 1:03 pm

md&pharmacist wrote:
Fri Jun 08, 2018 12:40 pm
I am looking at and/or own: INPIX, DXQLX, SMPIX, UGPIX, FSPHX, FSMEX, FSRPX, PSGAX, MSEGX. Well diversified, strong mix.
This mix appears to be comically undiversified, at least according to Morningstar X-ray. An even mix of all 9 has 60% US stocks, and 80% of the stocks are in 3 sectors (healthcare, technology, and consumer cyclical) with a huge growth tilt. The funds also hold lots of cash, as 13% of an even mix of those funds is in cash. Definitely a good mix if your goal is a maximum future drawdown, though.

asif408
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Re: Where do you Invest in Good Economy like this ?

Post by asif408 » Fri Jun 08, 2018 1:05 pm

johnpau wrote:
Fri Jun 08, 2018 12:21 pm
asif408 wrote:
Fri Jun 08, 2018 12:14 pm
I invest more in bad economies. Bad economies as a whole usually provide better stock market returns going forward than good economies. You just might have to wait a while for it to happen, and some of those bad economies are really bad and could disappear.

You are correct. That's the hard lesson we learned after the last 2008 recession. Repenting why we haven't jumped into stocks/RE in 2012 :confused
No need to repent, still plenty of stock markets that are below their 2012 highs, try some of those.

Jags4186
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Re: Where do you Invest in Good Economy like this ?

Post by Jags4186 » Fri Jun 08, 2018 1:24 pm

md&pharmacist wrote:
Fri Jun 08, 2018 12:40 pm
I am looking at and/or own: INPIX, DXQLX, SMPIX, UGPIX, FSPHX, FSMEX, FSRPX, PSGAX, MSEGX. Well diversified, strong mix. Yes, higher expense ratios. If you do your research, you'll find the funds with the lower expenses have poor relative performance.

Focus on strong 3-10 year returns if you don't like regular reevaluation.

I also personally invest in my own business and commercial real estate at this time.

Good Luck!
:?

megabad
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Re: Where do you Invest in Good Economy like this ?

Post by megabad » Fri Jun 08, 2018 2:01 pm

johnpau wrote:
Fri Jun 08, 2018 11:57 am
Where do you plan on Investing in Good Economy like this ?

I meant which part of the economy ( stocks,bonds,CDs,Real Estate,cash,..)
In whatever part of the economy that my asset allocation tells me to. When stocks grow in value relative to bonds, they become too high a % of my portfolio so I sell them and buy more bonds. Vice versa when stocks drop. The result is that I maintain my asset allocation thru "good" economies and bad. I only invest in real estate when I believe I am properly compensated for the risk and that doesn't necessarily tie to the "economy" as a whole. I do not consider CDs and cash investments really and the economy has no bearing on my choosing to put money in them. They are short term savings for me.

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greg24
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Re: Where do you Invest in Good Economy like this ?

Post by greg24 » Fri Jun 08, 2018 2:43 pm

In this economy, I stick with my chosen AA.

Same as any other economy.

minesweep
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Re: Where do you Invest in Good Economy like this ?

Post by minesweep » Fri Jun 08, 2018 2:56 pm

greg24 wrote:
Fri Jun 08, 2018 2:43 pm
In this economy, I stick with my chosen AA.

Same as any other economy.
+1

Staying the course.

KlangFool
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Re: Where do you Invest in Good Economy like this ?

Post by KlangFool » Fri Jun 08, 2018 3:00 pm

minesweep wrote:
Fri Jun 08, 2018 2:56 pm
greg24 wrote:
Fri Jun 08, 2018 2:43 pm
In this economy, I stick with my chosen AA.

Same as any other economy.
+1

Staying the course.
+1.

KlangFool

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mickeyd
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Re: Where do you Invest in Good Economy like this ?

Post by mickeyd » Fri Jun 08, 2018 3:06 pm

TSM, I-T bond, TIS...same as always.
Part-Owner of Texas | | “The CMH-the Cost Matters Hypothesis -is all that is needed to explain why indexing must and will work… Yes, it is that simple.” John C. Bogle

md&pharmacist
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Re: Where do you Invest in Good Economy like this ?

Post by md&pharmacist » Fri Jun 08, 2018 4:28 pm

asif408 wrote:
Fri Jun 08, 2018 1:03 pm
md&pharmacist wrote:
Fri Jun 08, 2018 12:40 pm
I am looking at and/or own: INPIX, DXQLX, SMPIX, UGPIX, FSPHX, FSMEX, FSRPX, PSGAX, MSEGX. Well diversified, strong mix.
This mix appears to be comically undiversified, at least according to Morningstar X-ray. An even mix of all 9 has 60% US stocks, and 80% of the stocks are in 3 sectors (healthcare, technology, and consumer cyclical) with a huge growth tilt. The funds also hold lots of cash, as 13% of an even mix of those funds is in cash. Definitely a good mix if your goal is a maximum future drawdown, though.
You have to understand healthcare, technology, consumer cyclical is a huge percentage of the the PROSPEROUS market, and consistent.

I actually own more diversified index funds as well, but an shifting away. I drank the diversification Kool Aid in the past, but have found there is such a thing as too much diversification - and this significantly suppresses returns as the diversification into weaker sectors just means lower returns. That's why this mix way outperforms a 3 index fund mix - which would have only given you about 5% YTD due to the drag of the other sectors.

I do re-assess quarterly so my holdings can be very different in a few months but remain at the top of performing sectors, but right know I don't see the same benefits in sectors like banking, oil/natural gas, India, Latin America, telecom, real estate etc. There are more poorly performing sectors than well performing sectors, hence the general weakness in the overall markets the first part of this year.

I am willing to give up diversity as my goal is about 40% annualized returns by sticking with top sectors. It is a Good Economy and this is where I choose to invest (at least my market investments).

:sharebeer

tesuzuki2002
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Re: Where do you Invest in Good Economy like this ?

Post by tesuzuki2002 » Fri Jun 08, 2018 4:47 pm

johnpau wrote:
Fri Jun 08, 2018 11:57 am
Where do you plan on Investing in Good Economy like this ?

I meant which part of the economy ( stocks,bonds,CDs,Real Estate,cash,..)
Invest in yourself. It Pays dividends down the road in all economies!!!

WanderingDoc
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Re: Where do you Invest in Good Economy like this ?

Post by WanderingDoc » Fri Jun 08, 2018 5:08 pm

Ain't that the truth!
tesuzuki2002 wrote:
Fri Jun 08, 2018 4:47 pm
johnpau wrote:
Fri Jun 08, 2018 11:57 am
Where do you plan on Investing in Good Economy like this ?

I meant which part of the economy ( stocks,bonds,CDs,Real Estate,cash,..)
Invest in yourself. It Pays dividends down the road in all economies!!!
Don't wait to buy real estate. Buy real estate, and wait. | Rent where you live, buy where others pay your mortgage for you.

dogagility
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Re: Where do you Invest in Good Economy like this ?

Post by dogagility » Fri Jun 08, 2018 5:41 pm

greg24 wrote:
Fri Jun 08, 2018 2:43 pm
In this economy, I stick with my chosen AA.
Same as any other economy.
Ah...yup.
Taking "risk" since 1995.

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DanMahowny
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Re: Where do you Invest in Good Economy like this ?

Post by DanMahowny » Fri Jun 08, 2018 6:18 pm

Short an overpriced stock with no earnings and a crappy balance sheet.

TSLA is a good fit.
Funding secured

Green Street
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Re: Where do you Invest in Good Economy like this ?

Post by Green Street » Fri Jun 08, 2018 6:31 pm

In whatever sector is undervalued
Searching Through The FiRE

pkcrafter
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Re: Where do you Invest in Good Economy like this ?

Post by pkcrafter » Fri Jun 08, 2018 6:53 pm

johnpau wrote:
Fri Jun 08, 2018 11:57 am
Where do you plan on Investing in Good Economy like this ?

I meant which part of the economy ( stocks,bonds,CDs,Real Estate,cash,..)
Same as always - Stocks, bonds, RE, cash equivalents. No changes based on what's happening now. "Now" should not be in an investor's strategy. :happy

Paul
When times are good, investors tend to forget about risk and focus on opportunity. When times are bad, investors tend to forget about opportunity and focus on risk.

MotoTrojan
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Re: Where do you Invest in Good Economy like this ?

Post by MotoTrojan » Fri Jun 08, 2018 7:00 pm

md&pharmacist wrote:
Fri Jun 08, 2018 4:28 pm
asif408 wrote:
Fri Jun 08, 2018 1:03 pm
md&pharmacist wrote:
Fri Jun 08, 2018 12:40 pm
I am looking at and/or own: INPIX, DXQLX, SMPIX, UGPIX, FSPHX, FSMEX, FSRPX, PSGAX, MSEGX. Well diversified, strong mix.
This mix appears to be comically undiversified, at least according to Morningstar X-ray. An even mix of all 9 has 60% US stocks, and 80% of the stocks are in 3 sectors (healthcare, technology, and consumer cyclical) with a huge growth tilt. The funds also hold lots of cash, as 13% of an even mix of those funds is in cash. Definitely a good mix if your goal is a maximum future drawdown, though.
You have to understand healthcare, technology, consumer cyclical is a huge percentage of the the PROSPEROUS market, and consistent.

I actually own more diversified index funds as well, but an shifting away. I drank the diversification Kool Aid in the past, but have found there is such a thing as too much diversification - and this significantly suppresses returns as the diversification into weaker sectors just means lower returns. That's why this mix way outperforms a 3 index fund mix - which would have only given you about 5% YTD due to the drag of the other sectors.

I do re-assess quarterly so my holdings can be very different in a few months but remain at the top of performing sectors, but right know I don't see the same benefits in sectors like banking, oil/natural gas, India, Latin America, telecom, real estate etc. There are more poorly performing sectors than well performing sectors, hence the general weakness in the overall markets the first part of this year.

I am willing to give up diversity as my goal is about 40% annualized returns by sticking with top sectors. It is a Good Economy and this is where I choose to invest (at least my market investments).

:sharebeer
You do realize how fabulously wealthy you'd be if you could get 40% CAGR consistently, right? People would forget who Buffett is.

If it was this easy, the pros would have a fund simulating this strategy and it would have beaten the S&P500 handily since inception many years ago.

MrPotatoHead
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Re: Where do you Invest in Good Economy like this ?

Post by MrPotatoHead » Fri Jun 08, 2018 7:39 pm

Small business start-ups with an eye toward flipping.

I am currently starting 3 small business concepts. At this stage of the business cycle often would be entrepreneurs are chomping at the bit, as they have some cash built up. Often you can get a "me too" concept up and running, book a year of operational profit, and sell it to someone who is happy as a single unit operator of a profitable concept or you can say in for a piece of the action. Generally these are win-win scenarios. I have done a number of them over my lifetime. Darn, I love capitalism : ) It is fun. Essentially flipping small business concepts.

This is the time for that sort of thing (finding a buyer). And this may be the last hurrah (boomer zees may start flooding the market as they retire over the next decade, the MUFs will possibly buy in bulk, cheaply, from the zor who may manipulate the right of first refusal to rive things into the hands of MUFs).

Once I did not have the insight. I sold a concept and the buyer immediately pumped in some money and franchised it! I made some $ but he was the better man by far. Ah, live and learn.

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cockersx3
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Re: Where do you Invest in Good Economy like this ?

Post by cockersx3 » Fri Jun 08, 2018 7:51 pm

greg24 wrote:
Fri Jun 08, 2018 2:43 pm
In this economy, I stick with my chosen AA.

Same as any other economy.
+1. My VTSAX (US equity) allocation is slightly above my rebalance band at the moment, due to the crazy stock market over the last 18 months. So, all of my current investments are going into bonds (VBTLX) or international (VTIAX) in order to slowly get my AA back where I want it to be.

Boring to be sure, but it works for me. 8-)

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