I'm going to mostly cash in Long-Term portfolio

[newwurldmn]

NQ 17000 soon enough, fiscal trillions thanks to the Senate RINOs collaborating with their Democrat comrades.

thankfully from 2016-2020 we had fiscal responsibility and a shrinking deficit!

 

[lwlee]

SP500 5 and 20 year charts. Just looking at it seems so stratospheric. Think about it, an entire generation has never really known a downturn. Pandemic just seemed like a buying opportunity. Pandemic lows didn't even go below 2016 highs!

 

[Sweet Bobby]

Oh dear. This is a terrible decision. Inflation is going to eat at your cash. No, no, no. If you want to live in a corner, fine.

 

[Nobert]

Inflation is going to eat at your cash. No, no, no.

Sounds like one yahoo article too many.

 

[Sweet Bobby]

Sounds like one yahoo article too many.

You are clueless.

 

[Overnight]

You are clueless.

Sweet Bobby, back from the dead. So what is your advice? Inflation is going to eat cash, so cash is bad. Where should we put our cash to lose it?

 

[R1234]

Cash is a hedge.

ALL hedges cost you money (like insurance)... until you REALLY need them!

(It would be interesting to learn how much money was "wasted" on put option buys.. hedges.. on the market during this manic rise...)

Back in the 70s/early 80s (prior occurrence of inflation) bank rates were in the 5% to 10% range with a foray into the teens. So back then, being in cash was an alpha adding 'strategy'. Now its neither alpha adding nor a hedge, as hedges are supposed to gain in value as your main holding loses value. We're in uncharted territory here with zero and, in some countries, negative rates in the face of ramping up inflation worldwide. I personally feel a strong urge to keep as little money in the bank as possible - currently my net worth is the most invested it has ever been and has the least % cash ever. I have strict rules to exit my investments and go short or to cash during downturns so I don't lose sleep over it. To me, keeping cash in the bank is not the way to go as you are functionally losing about 6% to 10% of your balance every year due to inflation, depending on which inflation numbers you are looking at.

 

[VicBee]

I moved my 401k to 75% cash yesterday. Doesn't feel right to me up here. If I'm early, so be it, just don't want to be a part of this Bull market anymore.

I put mine and wife's to cash 2 weeks ago. To date hers is back at exit date, so no change.

 

[Scataphagos]

hedges are supposed to gain in value as your main holding loses value.

Not necessarily. If that were the case, one should invest 100% in the hedge vehicle.

Hedging is to "offset losses" somewhere else... not necessarily 100%.

Besides, a cash hedge is more of a temporary position.

 

[Specterx]

It's going to be tough to see a sustained market de-rating with the Fed printing $100bn a month and rates at zero. Feels like we can go much, much higher.