Investment BS Thread - Stocks/Futures/Mutual Funds/Bonds/Commodities/Options/ETFs/401ks/Etc

I too thought strongly about this a year ago. After doing the math I decided to just buy some REITs. It's a lot easier for almost the same profit return. BUT you can't vacation for two weeks in a RIET...

 

I have a income rental in town and vacation property. It’s just a building/ camping lot now,no cabin.

So some thoughts.
What is the rate appreciation on property in the area? Even without rental income can you at least stay ahead of inflation.
Vacation property is MUCH harder to liquidate especially in recessionary Times think long term.
Can you get enough rental income for this property to self sustain it’s maintenance/ taxes?
A GOOD property manager will pay for themselves- my experience rental rates are always at market prices, vacancy minimized, better tenants- note I have no experience on the short term weekend stuff.
Are you going finance this thing? Figure that into the math and keep cash reserves for slow periods.

I like having investments I can touch

 

I would not buy a vacation home if I could not afford the mortgage if it sat vacant 100%. Especially since this would be my first.

The only risk I would be taking is tying up money in something that didn’t return, but will at least appreciate a tad bit faster than inflation.

It’s about perspective I get that, also the reason I posted at 1 is bc that’s the time I got home. I had been looking this whole week at work. Just nervous rightfully so though

 

You could always buy a whole neighborhood in Detroit.

 

Any recommendations?

 

I asked once also and post 2799 was some recs.
https://www.tacomaworld.com/threads...-etfs-401ks-etc.531854/page-140#post-20174968

 

That was my post haha

Those were mortgage REITs. The equity REITs I have are O, FRT, IRM, and EPR.

If anyone is new to REITs, the first thing to learn is the difference between equity and mortgage REITs. The biggest difference is that equity REITs own property and make money renting the space out, mortgage REITs don’t own property and make money issuing mortgages. The yield is usually higher on mortgage REITs but they’re more sensitive to interest rates. Another big difference is that some REITs are internally managed, some are externally managed. I prefer internally managed, but it’s not the biggest deal if they are well run. Here is a very good website that has everything you’d want to know about probably every REIT out there:

https://www.reitnotes.com/

 

currently still following my totally made up trend line.

 

Amazon

 

Buy buy then buy some more. GOOG too

 

Pot stocks are on a bit of a dip. Good buying point around now imo

 

My little play account bounced back to break even today, thanks in part in me spending the last bit of cash on some LUV before the bounce.

My retirement account however is saying its only a flesh wound with still a good dent in it.... market gyrations. Anyone thinking about recessionary positions or everyone OK to ride another year. Not looking to unplug but to stabilize a portion.

I had a relative that grew up in the depression and due to a VERY conservative investing position went through the Great Recession- unscathed- literally even had gains sitting almost entirely in the bond market. Great example of what the bond market can offer in that scenario. I am thinking of sliding a 20% position into a that area/maybe muni-bonds sometime in the next few months.

 

I've had 10% position in bond market for a while. It's a good hedge.

 

They also gave up large gains on either side of the recession by being overly conservative. If you're not close to retirement I wouldn't give up 20% of my portfolio to something that will likely underperform.

 

When rates go down bonds go up. Are rates going down?

 

One of my favorite investment quotes, on the topic of recession:

“Far more money has been lost by investors preparing for corrections, or trying to anticipate corrections, than has been lost in corrections themselves.” – Peter Lynch

 

You can't time the market you cant time the market you cant time the market .

In the long run you will lose.

 

I feel like we had a very similar discussion just a few months ago about trying to time the market...

 

My other favorite quote that’s relevant to this topic:

“The stock market is a device for transferring money from the inpatient to the patient.” - Warren Buffett

If someone tries timing the market, they’ll likely miss out on the few days of the year that matter, such as today. Just sit back and make an annual check on how you did at most.

 

I dont care what you do since it's your money. But I would say if things go back up to where they were a month or so ago it might not be a bad idea to put 20% into something less risky. Were coming up on an election year so I believe things will be rocky from now until after the next election.

But if I moved a portion of my portfolio into safer assets I would read the news 2 days after and see that trade deals have been made, GDP is at 112% last quarter, oil would cost $120 a barrel and Warren buffet says were good for the next 60 years. And miss out on one of the best days.
You might consider a target date retirement plan that depending on how long until your retires slowly tapers from mostly high risk stocks in the beginning to a more conservative stance as you get close to retirement.
If your within 10 years of retirement moving into bonds might not be a bad idea though. I'm not sure where your at. But if not and you leave it as is, it might have a really crappy year but the next 2 years after that might make up for it and then some.