Question for everyone relating to this article. Relative has $100,000 to invest. Real estate is too high. Market is going down. Silver is stationary. What, in your opinion is the best investment for $100,000 right now. Just keep it in cash?
Depends on your risk aversion. Keeping in cash loses money due to inflation. A well-balanced, easily liquidated mutual fund has been my go-to.
Buy guns and lead.
Is he willing to move things around periodically or does he want to just put it someplace to sit?
If he’s willing to move it around - I’m playing reverse ETFs SPXS and SQQQ to make money on the downside.
I’m also holding TLT which is a bond ETF. I know they are down with the market but have started to rebound as volatility has increased.
I would recommend holding another 3-6 months in cash, despite the inflationary loss and then making a decision. If he wants to make an immediate move I’d go with the reverse ETFs and TLT combination.
It’s what I’m doing outside of piling into DWAC (the trump media SPAC) and a very small play in a couple small companies.
This is all in my trading account. In my long term retirement stuff I just park it in index funds and forget it for another 20 years....his timeframe may not allow that.
I’ve been 90-10 in cash for quite a while until I listened to “expert” financial people who assured me the market was strong and I was foolish to keep so much in cash. I put a chunk into the market at the exact wrong time and am getting clobbered. I’m hoarding cash now. Yeah, yeah inflation is going to get me, but not before everyone else is tapped out paying off margin loans and credit cards. Don’t care. I have piece of mind with cash right now. I’ll carefully move it later if and when things settle down. 2024?
I would be in no hurry, none, zero, to throw that money into the General stock market. I can see taking about a quarter of that money and buying an energy related mutual fund. And leave the rest in cash.
1) Start buying some gold. Not all at once, keep cash ready - despite the inflation rate. The dollar is showing absurd strength right now, which won't last forever. 10% is a good insurance level.
2) Residential real estate is still OK - not nearly as overpriced as the media likes to pretend - but it varies based on individual markets. We are five million units short of meeting demand, as due to NIMBYism and looting politicians builders can no longer develop starter home communities at a profit. Sell California - buy Oklahoma.
3) After interest rates peak, some bonds will become very attractive.
4) For now, avoid stocks or other forms of paper investment that will make your advisors rich, as it is too difficult for the average investor to discover their true value.
5) But the very best way to invest $100,000, IMHO, is in one's own business - or if one doesn't own a business, in non-university education related to your field of choice.
This is the kind of market where you can do everything "right" and still lose money in the short run. The point is to avoid big wipeouts, as are in progress at some former NASDAQ high-flyers right now. Look for real assets with real long-term value.
Use $10k o fit to buy I-Bonds. If realtive is married, use another $10k to buy I-bonds in wife’s name. I-Bonds issued this month are at 9.7% interest until next adjustment and fully guaranteed. Only gotta hold them a year.
My investments are in Brazilian stocks. They QT-d and rose interest rates years ago.