“Wild ride” is an understated description for the last couple of weeks in the markets! As a dear friend of mine asked, “Don’t things wobble just before they fall over?”
If you read, watch, or listen to pundits & journalists, you can pretty much find an opinion for every direction or thought! Therefore, my general conclusion is not to rely on these so-called expert opinions as a guideline for your investment portfolio.
Is there really a safe haven to park your funds these days? Can you profit by short term trading? Do you have the time to research and watch your trades every day? Gold is often touted, but many fear getting in at the “latest highs”. If you have researched metals, commodities, or other alternative investments, you know that the decision is not easy.
Real estate’s decline makes it a tempting place, along with the low interest rate environment that appears to be stable for the next couple of years. However, that is certainly one of the most illiquid assets to own when you consider the potential for even lower valuation in the months and years ahead. I know of some very experienced investors who are making huge profits on their real estate strategies, but unless you are a professional real estate investor I’d say, tread cautiously, or get a professional partner. It does appear to be a good time to buy a residence, as long as you feel your income is stable. Basing the purchase on one spouse’s income is very prudent these days. If you’re single, focus on building that emergency fund to a minimum of 6-12 mos of expenses.
Many of my clients wonder which direction to take, and my advice is to evaluate your unique circumstances, your need for liquidity, timeframe to hold an investment/position, and the risk you are truly willing to bear, and be educated before implementing your decisions. Knowing where you stand in relation to your goals is key to achieving a successful outcome.
Best of health and wealth to you! I am enjoying the gorgeous southern California weather – this is why we Orange County folks “pay the price” to live in God’s country! Aloha!