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/biz/ - Business & Finance

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753582 No.753582 [Reply] [Original]

So now is a horrible time to invest in stock because of the imminent crash, right? I should just wait for the correction and then throw my money in. Most economists are predicting a crash this year, but some say it will happen next year, what do I do with my cash in the mean time to keep it safe

>> No.753586

>>753582
>imminent crash
says who?

>Most economists are predicting a crash this year
No they're not. Besides, if they could time markets, they'd be investment managers and not economists.

You're fucking retarded.

>> No.753587

>>753582
>Most economists are predicting a crash this year,

They also predicted a crash in 2009, 2010, 2011, 2012, 2013, and 2014.

I wish I had a dollar for every time the phrase "double dip recession" was printed in the past 5 years.

Look up dollar cost averaging.

Investing is something you are continuously doing, not just spending all of the money you get for your autism disability and forgetting about i.

>> No.753590

The market is ridiculously overvalued, it's at the same levels that it was at during the dot com boom, it's pretty fucking obvious that it's going to tank and tank hard relatively soon.

>> No.753595

>>753582
>So now is a horrible time to invest in stock because of the imminent crash
/biz/ has been saying this for at least a year.

If you put $10,000 into VTSAX a year ago, you'd have $11,270 now. Up to you.

>> No.753596

>>753590
So short some index ETFs, or even better, buy leveraged short products, or best option - buy $UVXY or $TVIX and just wait a couple years. You'll be rich very soon with all of those smarts.

>> No.753620
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753620

Yes OP, just keep waiting for that crash around the corner, maybe wait for two crashes so it's extra low.

>> No.753622

>>753582
OP - if your concern is over the long term, what happens in the short term does not matter and is mostly irrelevant.

If you're just looking to get rich quick - you are not prepared to be an investor. You really need to be thinking about your money in a methodical and emotionless way and investing with a 10 to 20 year outlook. Whether or not the market crashes the very day after you put your money in will be a blip against your gains in the long term.

Google dollar cost averaging while you're at it.

>> No.753673

>>753622
>Whether or not the market crashes the very day after you put your money in will be a blip against your gains in the long term.
How so? Whether or not you invest in a stock at it's highest price or it's lowest definitely determines your profit margin. Investing in the stock market now when it's grossly overvalued is just stupid.

>> No.753674

>>753673
so why didn't you get involved when it was cheaper?

>> No.753677

>>753673
He's saying if you gad invested in microsoft right before the "crash" of 1980s you'd still see huge profits today in 2015.

>> No.753682

>>753677
Yeah but if you invest in Microsoft now and it crashes you'll be lucky to get your money back in 35 years. They're not going to see anywhere near the growth they did during the tech boom. To win over the long term like that you need to predict who will be the next Apple or Google, and good luck with that. You can't make money by investing in stocks that are grossly overvalued and have little to no growth prospects over the next decade. Google, Apple and MS aren't getting any bigger, they've hit their limit.

>> No.753701

>>753582
>Most economists are predicting a crash this year
Most economists are idiots and have never successfully predicted a crash. Keep in mind that their "predictions" also have an effect on the market

>> No.753710

>>753677
>>753682

I'm actually talking about dollar cost averaging. You don't just do that initial investment. You keep putting money in out of every paycheck - I do it every month. You can still make short term cost based decisions on what to buy each time if that makes you feel better but even that won't matter much in the long run.

The important thing is you're buying when it's low, when it's high, and ignoring emotional hype about which of those things it is because in the long run, all that matters is the general upward trajectory of 10+% average gains year over year. This strategy will make you rich but it's not exciting - just doable and almost mathmatically certain.

Or... you could continuously risk everything and get lucky just as likely as you'll fail. Your choice.

>> No.753790
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753790

>>753582
experts agree that it is always the right time to invest, but only as long as you diversify for a long term portfolio.

If you mean to just buy one sector or one stock, that is the risk where people say "overvalue" and other words of wit a lot like a parrot.

If you are always waiting for the next crash a person is likely to never invest or do something stupid. Kind of like waiting for the next best tv, smartphone, or upgrade. Dividends and stock splits are how you make up for some basic losses over time. But you never get there if you never start.

Just start slow if you have some major concerns. Buy the minimum account size on a total stock market index fund and automate invest something like 50 dollars a month or more, if you can handle it.

When you are comfortable with how it works you can turn automated investing off and self invest on the dips to improve your yearly percentage.

I am holding at +10% per year at the moment.

>> No.753831

>>753587
Market has never had 7 straight years of growth m8. It is likely and a very good prediction to say there will be a bit of a downturn. If there is 8 years of growth that is a new record and maybe something for Obongo to be proud of.

>> No.753847

>>753582
Yah know their are ways to get a return on your money other than stocks right? Like i know were on /biz/ and we all love a good index fund but you could try idk

Real estate

Own a business

Hard money lending etc

>> No.753913

If you're sure a downturn is imminent you can by inverse ETFs. There's ways to make money whether we're in a bull or bear market.

>> No.753914

>>753582

If you are worried about the market crashing, take out a trailing stop loss order, to sell your holdings if they drop more than 5% from their peak.

Keep it open for 90 days, and keep renewing it as long as you are worried.

Hopefully that will give you the confidence you need to invest.

>> No.753922

>>753582

just buy monero.

>> No.753930

>what do I do with my cash in the meantime to keep it safe

Cash is not safe these days. It's waiting to be inflated, ripped, burnt, or blown away. Buy something worth having or park it somewhere that will beat inflation.

Or you could always stuff it in a fireproof container, forget about it, and take the loss from inflation.