401k and investments

Well my energy just went down... Oh well. Buying more.

 

Meh.. energy isnt doing that good right now

 

Whether it is or is not, I will not sell the stock when it dips because that's when I'll actually have lost money. Is that the smartest move? Maybe not, I'm just saying what I will surely end up deciding to do. What do you recommend to buy right now?

 

No. Dont get rid of it. You have lost no money until you sell.

Give it a couple weeks itll recover. Nat Gas and Oil are just taking a dump..

 

In this deflationary period, you are best to keep physical cash.

 

What are you talking about? That's what I said I would do. I said I would not sell a losing stock because then I've lost money.

That is true but then what is there to say about 401K and ROTHs?

 

Not always. Healthcare sector is doing pretty well right now actually

 

Invest in precious metals, its easy and not taxed. also mutual funds are great to start with but not that risky. a ROTH IRA would be smart to also open up

 

Yes I know.. you asked if you were correct and I was just answering it

 

How would that be an advantage , doesn't the buying power of physical cash diminish the same ?

 

Do not invest in precious metals...

 

No, the buying power increases during deflation. Physical items, including houses, become cheaper to buy as the dollar has higher purchasing power. Once the deflationary period ends and before it starts to head into proper inflation, that is when it is best to buy real estate and other physical assets. As inflation rises, the cost of those items will go up, increasing gains if sold.

 

Just MHO, I think precious metals are a good hedge against hyper inflation as the value of those PM will hold their value relative to the local currency, just as cash is a hedge against deflation.

 

I gotcha

 

I don't trust metals. My dad tried to convince me to put everything in gold a few years ago. It is now down 20% from then, and I am glad I didn't buy any.

Oh I see. That was a rhetorical question But anyway no I won't sell. I have firm faith it will rise again, especially in years to come.

Eh.. I think he is saying that stocks will go down and then all the cash you invested will be gone, while at the same time cash itself would still have worth. Stocks rise and fall by small or large amounts daily, cash takes a long time to diminish value.

 

Precious metals offer no return. They are only good if you have plenty of other investments. Its about the same return as a Tbill but with higher risk

 

X2

 

Not sure if it's been covered but I am changing my IRAs to true self directed accounts and am focusing on buying rental properties to be held within the IRA.

 

You looked into REITS?

 

What does this mean? I don't have enough capital to buy rent property yet, but some day.