Market feels very overvalued--go to cash for a while?

[Anonymous]

Feel like we are due for a 10-20 percent correction due to valuations, possible sticky inflation after PCE comes out this week, and AI bubble (will be good over long term but NVDA has a 4.3 trillion valuation).

THOUGHTS?

[Anonymous]

DOG MONEY

[Anonymous]

Go 100% Bitcoin bro!

[Anonymous]

Jumping in and out based on feelings is the path to riches bro

[Anonymous]

You're going to be so rich!

[Anonymous]

I agree with you OP

What's more likely. S&P to gain 30%, or to lose 30%.
The risks is exponentially higher the market will drop.
I piled a ton of $ into S&P in April when it was under 5000. It's seen an almost 30% rise. I'll be selling at the first sign of distress and stick it back into what at that time will probably be 3.5% money market until after the correction again. Locking in a profit is never bad.

You can be a sheepie and follow the axiom not to pull out of the market because it will recover. Pull up the long term graph and you'll see some of those recoveries took 15 years.

[Anonymous]

Anonymous wrote:I agree with you OP

What's more likely. S&P to gain 30%, or to lose 30%.
The risks is exponentially higher the market will drop.
I piled a ton of $ into S&P in April when it was under 5000. It's seen an almost 30% rise. I'll be selling at the first sign of distress and stick it back into what at that time will probably be 3.5% money market until after the correction again. Locking in a profit is never bad.

You can be a sheepie and follow the axiom not to pull out of the market because it will recover. Pull up the long term graph and you'll see some of those recoveries took 15 years.

Looks like you answered your own question. Good luck with your market timing.

[Anonymous]

Good time to put a chunk in Trump coin

[Anonymous]

Anonymous wrote:I agree with you OP

What's more likely. S&P to gain 30%, or to lose 30%.
The risks is exponentially higher the market will drop.
I piled a ton of $ into S&P in April when it was under 5000. It's seen an almost 30% rise. I'll be selling at the first sign of distress and stick it back into what at that time will probably be 3.5% money market until after the correction again. Locking in a profit is never bad.

You can be a sheepie and follow the axiom not to pull out of the market because it will recover. Pull up the long term graph and you'll see some of those recoveries took 15 years.

In the short term I agree this is a good time to be selling. Market is overvalued. I just cashed out a few hundred k to put down on a house in the next year.

[Anonymous]

You can invest in a fund that shorts the market.

[Anonymous]

Anonymous wrote:You can invest in a fund that shorts the market.

Timing is the issue though.

[Anonymous]

If the market can stay high through covid unemployment then it's going to stay high all through this administration. Even if the national guard starts torching derelict buildings.

[Anonymous]

who knows?!? Move 20%-40% to cash if it will make you feel better (but not all of it)

[Anonymous]

Moving to 100 percent cash can be very risky. You miss out on a lot of potential upside. But stopping buying and maybe going to 20 or 30 percent cash might be wise. I have not been buying us stock since January, buying international instead.

[Anonymous]

The market has been overvalued for 10 years. That’s not an actionable piece of information unless you like underperforming the market.