This threat was posted earlier... The rally has been more impressive than the selloff was shocking But, if you have cash...Where do you put it? If I am willing to try and find a return of 2-3% (with safety) where would I go?? I am too old to set up day trading...old dog, new tricks. I can't (don't want to do) CDs, bonds, REITs, QQQ (again safety), annuities (no inflation protection). If I was 30 years younger I would wait 6-9 months and find some retail property (with a good anchor store) and ride it out. But I'm not...Going on 65, it is what it is. I bought RING, but optioned it...Will get a good return, but it could have been so much more. Below are a few stocks I may go into (even though I am already in them). I never want to go too heavy into one stock (learned my lesson from GE). But, unless there is an ETF with safety (and will hold at least a 1% dividend) I will have to think outside of the box...Hoard toilet paper!! Verizon...It is up a bit. It should have a dividend. If the market crashes again, people may keep their Verizon account and could drop their Apple phone (watch). Walmart...Very boring (and yeah, they will get sued from people getting sick and dying). They did OK during 2008-2009. Sears, J. C. Penny, even Macy may not be around. McDonalds...They will make it if anyone will. If they don't, the US economy is dead...Totally!! Duke Energy...Yeah, they may reduce their dividend, but it will probably still be there. The areas they are at are pretty conservative (people may have savings). Chevron...Even if they don't hold their dividend, they have great locations. Chevron does not have great oil reserves...But they could buy some cheaply and pay for it with a cheap loan. They are even moving slowly into charging stations (a fast food restaurant on one side). Alibaba...(sorry can't get rid of this font...copy and paste, won't go away). Be outside the US...Hope for growth if the US tanks. Lowe's...Even if people have to sale their house (or people buy), home improvement can and should be done (they can also deliver!!). Schwab...Younger generations (tech) may move to them from the big boys. They have walk in offices for hand holding (when they open again...6 feet away). Enbridge...Canadian company. You still need the pipelines to get whatever oil you send to around the world. Wells Fargo...Biggest, people move to safety if their bank is about to go under. ADM...Around the world with food stuffs...Not glamorous, but hey, it works. They have held their dividend for years and years. It may be reduced, you never can tell. With all of these I might buy and then do a covered call for extra income. I do own all of these stocks. Just am thinking of adding on (beyond my comfort level) for safety and security. Thoughts...
I would have thought being 65 the person who wrote that would have learnt some patience. More likely the 30 year old wouldn't have the patience to wait.
Seems you don't really know what you want... 2-3% income? Lol, dream on. You get 2-3% right now only for taking a decent amount of risk. Nobody pays you that return for near risk less assets. Why? Because they don't need to borrow from you but instead can borrow at near zero from the Fed. Stocks don't pay income, they are risky investments.
I'd keep 95% in the bank and day trade for fun and pocket money the other 5% Just spare time, don't go all full time and go crazy looking at screens, just check the charts mid day a few times and if you see something jump on it, made $1000+ last week doing that with less than an hour spend, how much do you need per month to not use your reserve ?? Or Bank, assume you'll live to 85 so divide amount by 20 and live off that each year, enough ?? Being Greedy, could end you up with much less especially in this market.
If I were a wiseass I'd say " hookers and blow" lol... Seriously I may look for distressed high end real estate 4Q
To be honest I'm considering going back to playing poker for a while, lol. Real estate won't change I don't think. Not with 0% interest rates. Consider that the courts are going to backlogged for probably the next presidential term on evictions after this is over. Commercial REITs are going to get destroyed in Q4. I'd watch those. Residentials won't be touched for now I think. Interest rates are too low and the backlog will see people living in foreclosed homes for years.
I'm in a similar position. My business made some good $ over the past 12 years. But things are slowing down and my focus has now become how to live off the money I've got. I have a lot of years ahead of me (I'm in my late forties and healthy) - I could simply budget myself (and possibly my wife!) and live off the savings but that comes with its own risks such as potential inflation down the road. Buying commercial real estate when beaten down seems risky to me with the various unknowns such as brick and mortar decline etc. If there's a crash, buying multifamily is also a potential option but not sure how I feel about being a landlord. And cap-ex spending tends to make it not as attractive as people think. So my sole focus has turned to trading my own money. Not making long term investments but very short term trading. It is definitely not a passive thing. It takes several hours a day to make it all work, and countless hours designing the strategies. But to me it is my best available option. No need to have employees, overhead, marketing effort, client calls, etc.
In Nov-Dec (or next year), make low ball offers from one bank to another...See who bites. People did it for houses from 2008 to about 2011 and it worked for them... How about (6-9 months)...Make low ball offers on vacation homes. No one wants to go to an unknown place [in California where I live...Sierra Nevada Range] (safety and security). Reduce the weekly rents by 1/2...Whatever I can get. It is hard to get fire insurance because of the dangers of forest fires here (climent change). Also meth is a big issue here. Monterey Bay Area is too pricey and will NOT go down!! Use a property management company for the weekly rents or a long term rent. Just throwing out ideas. I did this before, and it can be labor intensive. It seems the only people that made money during this time was the property management company and their subcontractors. But if the price is right...
If that is the case...Shouldn't I consider doing my original idea of those stocks?? Do leaps, at the money or just out of the money. Enjoy the leap money and the dividend* if there is any. Be invested in "need" companies not "want" companies... Also since the government is printing money like a drunken sailor, I am concerned about super inflation. The retail anchor with an inflationary clause, could be a safe haven. I hear the local J. C. Penny property is for sale!! Good, stable, buy!!
Whatever investing/trading style you're comfortable with is what you should go with. But in my opinion, the returns should not be 'lumpy' if you are doing it to generate income. By lumpy I mean good over the long term but suffers down months, quarters or even years once in a while. To have it be a sole source of income the investing style should be positive at least 10 out of any 12 consecutive months. And the strategy should not be aiming for off the charts returns. Assuming a large enough capital base, you should be aiming at 10% per year since this is about capital preservation+income rather than shooting for the stars.