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by pjb88 164 days ago
Any ideas of where to invest just now?

Seems like there's lots of warnings about equity bubbles, bond/debt problems, economic issues that will affect inflation (UK/EU), and gold is mega high. Seems like everywhere you look it's doom?

6 comments

Long term or short term investment? One time lump sum investment or investing a little each paycheck? What's your risk tolerance? The answers to those questions are needed to answer your overall question well
Long term. Like normally I do a mix of index funds wide diversification plus bonds 80/20, but even vanguard (despite always saying "get a plan and stick to it, tune out the noise") are all of a sudden saying they're under weighting growth stocks.. (Which I think is a bit strange that they don't acknowledge that it's different from their normal strategy)
Long-term is easy, and what you describe you are doing sounds fine. The hardest part is when you forget it's for long-term and worry about short-term events like recessions and bubbles. Don't let those short term things shake you! It's going to be fine
If everything seems too expensive, and you're confident enough the prices will go down, you should just hold cash and wait.
This is specious advice. Never hold 100% anything.

Especially cash. Maybe/likely the US Fed will pump trillions of new dollars into the economy in random places and cause massive inflation.

So let's say we hold 25% cash, or even 50% cash. We still have to allocate the other 50-75% somewhere. Where?

Allocate it to a bank account with deposit insurance and go long on "peace of mind". Losing 3-5% of purchasing power over 12 months' time is better than losing 15% or more in an overnight crash and have to wait for the government to intervene and prop values back up.
Just buy an all-world ETF (or another similar instrument, depending on your local tax laws) for the long therm.

Who cares if there is a bubble or not. The world economy will still grow.

Spain. $EWP. Also pretty much any other developed nation stock index.

It’s the new flight to safety after gold.

Why Spain?
Who knows. But thats the country up the most last year.
Ah yes, the good old investment advice: if a stock has been going up, it’s time to buy.

Good luck with that strategy.

I heard this about NVDA in 2020 and 2021 and 2022 and 2023 and 2024 and 2025 and now 2026… if the stock is going up it is 100% time to buy if you know what the F you are doing. if you don’t know what you are doing then you sell when the stock is going up :)
If you know what you are doing, you do not rely on external random and irrational signals like market price.

Also, past performance is not an indicator of future performance. Hindsight is always 20/20.

Oh and what’s your strategy Mr. Buffet?
For one, Mr Buffet coined the aphorism “be fearful when others are greedy, and greedy when others are fearful” and here you are suggesting the literal opposite.
During the dotcom bubble, Alan Greenspan recognized that irrational exuberance was driving the market to unsupported valuations. He said this in 1996. The bubble wouldn’t pop for many years. In fact, the deepest nasdaq market correction was still above the nasdaq value when he initially made his comment. The point is, time in the market > timing the market (at least for most people).
He then went on to create the housing financial crisis.
the one Japan blog post recommended the Nikkei 225 while the yen is still dogshit