2021 Stock Market
- Thread starter Mtowncyclone13
- Start date
I dislike sitting on pure cash, prefer to have it invested somehow, but am struggling on what to invest into. I’m not a weed person, and prefer to not invest in something I don’t understand or know, trying to figure out what to do. If CDs had anything of a return, I’d probably do that. I’m always nervous investing during a changeover.
Index funds are always a good choice when I'm in this dilemma.
I’ve considered that, thinking I will probably hold off for 3-4 weeks to get a feel if and/or what might be best. Have looked at solar panels for a business, going to do the same there I think. May be more favorable options in the near future. I love risk, but when I’m extremely uncertain I usually sit cash.
This is where having an advisor would help for a lot of people because they should be able to cure their analysis paralysis.
My fun acct is currently sitting 40% in cash because I cant pull the trigger on anything. Had it setup to buy AMD yesterday sub $88 and didnt hit the submit button.
So pissed I sold my AMD. Made money, but damn...
$LAC dipped this morning big time. I'm buying more.
I’m not even comfortable listening to an advisor right now, I think they are guessing as much as I am. Many times they will lock you into illiquid assets and during uncertainty I don’t want illiquid
Buddy currently has $600,000 in AMD at $91 per share and says he is going to hold through earnings on the 26th, he either has steel balls or is a complete moron.
IMHO the first 6 months of the Biden admin will be great for the stock market assuming he doesn't have any issues pumping in a few more trillion for covid relief.
If you need a place for your cash to sit, I suggest my bank account.
I remember you saying that last year... was wondering how he ended up. Steel balls for sure.
I had to take AMD off my watch list... it hurts too much seeing how much money I could have lol. Thats why I always remind myself I'm an investor, not a trader. Tried to be cute and cost myself cash.
Also, keep in mind tht there is more to the world than just the US. I personally think that is a mistake to have all your investments into one country. I personally diversify some into other countries via country specific ETFs etc.
I know. About 75% of what I carry for mutual funds is international. I also understand that large companies cover many countries. With that, the US is the most driving country in the world, it sets the tone more than any other country out there.
I’ve increased my position over the last 15 years. It’s a slow but worthwhile roll. It’s one of the few individual stocks I count on for stability.
Well, it's not so much that the capital gains are taxed differently, but rather that REITs in general are taxed differently. Income is taxed mostly as ordinary income or capital gains rather than dividends. My investment is via an IRA, so there are no tax implications. A company has to distribute at least 90% of profits to qualify as a REIT. Many distribute 100% (or more) to avoid double taxation.
It's a bit complicated, but here's how NLY does it:
Keep in mind that not all REITs own real estate. In the case of mortgage REITs, they borrow money and use it to purchase mortgages. Although they are "dividends," they're treated as distributions...most of which would be rental income if they own property...aka ordinary income. But as I mentioned above, not necessarily entirely. They can be a mix of ordinary income as well as capital gains...and even some dividend income as well. Fortunately, it's up to the companies to figure that out and not investors!
Depends on the country. Some countries can become hostile to corporations in a very short period of time. If you stuck money into oil ventures in Venezuela years ago, (ran by American companies) your investment vaporized. It was a great investment until it wasn't. And then there are the issues of poor government oversight. China would be a good example of such a country. Only a fool would invest in China.
I agree that there are investment opportunities all over the world, but I would never justify investing in one as a hedge or diversification. The additional risks (geopolitical, currency, etc.) weigh against them, and there is plenty of global exposure in American multi-national companies.
