Is it a big mistake not to invest in the stock market right now?

[Anonymous]

We have some saving cash (>300k) in addition to emergency funds. Dh thinks it’s too risky to invest now because the stock market is too high already. I feel with the rate feds prints money, our saving cash will shrink significantly if we don’t invest. I think the market will go up for quite some time and it’s worth taking some risk. Pls help me convince dh or myself.

[Anonymous]

maybe, maybe not. If the market goes up, it's a mistake. If the market goes down, it's a smart decision. The thing is no one knows what will happen tomorrow. I would say mistake, and, historically, the market goes up. People also say that we're ready for a crash, and they have a bunch of data on their side.

[Anonymous]

If you are investing for long term (5+ years), go for it. If you need cash in the near term (next 2-3 years), save it in bonds.

[Anonymous]

Anonymous wrote:maybe, maybe not. If the market goes up, it's a mistake. If the market goes down, it's a smart decision. The thing is no one knows what will happen tomorrow. I would say mistake, and, historically, the market goes up. People also say that we're ready for a crash, and they have a bunch of data on their side.

That’s always the case. But where would the newly printed money go?

[Anonymous]

Yes. Time in the market > timing the market.

[Anonymous]

What is your goal for that cash? Is it long-term savings or retirement money? Then put it in the stock market. Buy something like Vtsix, set it and forget it.

If you have less than a five year time rising, though I wouldn’t

[Anonymous]

Yes it’s a waste not to be in market.

[Anonymous]

Yes, you should be invested. How long has that extra 300k been sitting in the bank earning nothing? Where would you be now had you instead invested it?

You already have an emergency fund in case something happens.

[Anonymous]

2019 was already a good year. Where was this $300k all this time? I had $70k from sale of my, condo which I put into the market March and April 2020. It's $250k right now. There are ETF's that went from $25 March to $105 now. Your $300k would be $1 million right now. Etf's are not even that scary.Had you invested in 2019 already, you'd have a lot more. The March "crash" wouldn't been a problem.
I'd definitely invest in - it's going to be another decent year in the market. There is no reason tho think that the money won't be up in 5-10 years. You are saving it for long term, right?
Invest $200k and wait for a crash with the $100k, so both of you can be happy.
Again, 2019 was a good year also. How could anybody with cash around not have noticed it and get in the market.

[Anonymous]

Dollar cost average with 10k a month.

[Anonymous]

who knows.

[Anonymous]

Anonymous wrote:Yes it’s a waste not to be in market.

This. It's been so hard not to make make money in 2020. I bought about 25 different stocks and all of them went up 50% or more. Many doubled, tripled- Novavax (10times), Nio (bought at $7), Tesla ($100), Zoom ($170 and I thought it was too high), even Apple (40%) and Amazon (60%) did ok. I just bought another stock based on a "tip I heard on a bus" and even that went up 40% in a month.
Everybody talks about crashes and how we need to diversify and stay away from individual stocks and how market only makes 10% a year if you are lucky. Might be true, but lets also talk about stock stocks doubling, tripling. There are so many more people in the market and buying and selling costs almost nothing. Put a stop loss on it if too scared.

[Anonymous]

Anonymous wrote:We have some saving cash (>300k) in addition to emergency funds. Dh thinks it’s too risky to invest now because the stock market is too high already. I feel with the rate feds prints money, our saving cash will shrink significantly if we don’t invest. I think the market will go up for quite some time and it’s worth taking some risk. Pls help me convince dh or myself.

Average in over 2 years, put $75k every 6 months into an equal weighted sp500 index like RSP. An etf like VOO matches the SP500 and is too heavily weighted toward the dozen or so big techs, which contribute most of the rise in the index this past year.

[Anonymous]

Anonymous wrote:

Anonymous wrote:Yes it’s a waste not to be in market.

This. It's been so hard not to make make money in 2020. I bought about 25 different stocks and all of them went up 50% or more. Many doubled, tripled- Novavax (10times), Nio (bought at $7), Tesla ($100), Zoom ($170 and I thought it was too high), even Apple (40%) and Amazon (60%) did ok. I just bought another stock based on a "tip I heard on a bus" and even that went up 40% in a month.
Everybody talks about crashes and how we need to diversify and stay away from individual stocks and how market only makes 10% a year if you are lucky. Might be true, but lets also talk about stock stocks doubling, tripling. There are so many more people in the market and buying and selling costs almost nothing. Put a stop loss on it if too scared.

+1. You could almost have blindly picked individual stocks in 2020 and gotten at least double the returns in a couple of months. Hell, even airline stocks went up as long as you invested around March or April.

[Anonymous]

Anonymous wrote:

Anonymous wrote:Yes it’s a waste not to be in market.

This. It's been so hard not to make make money in 2020. I bought about 25 different stocks and all of them went up 50% or more. Many doubled, tripled- Novavax (10times), Nio (bought at $7), Tesla ($100), Zoom ($170 and I thought it was too high), even Apple (40%) and Amazon (60%) did ok. I just bought another stock based on a "tip I heard on a bus" and even that went up 40% in a month.
Everybody talks about crashes and how we need to diversify and stay away from individual stocks and how market only makes 10% a year if you are lucky. Might be true, but lets also talk about stock stocks doubling, tripling. There are so many more people in the market and buying and selling costs almost nothing. Put a stop loss on it if too scared.

God. Reading this and I feel like I made such a mistake not investing. I have 40k just sitting in the bank earning like a tenth of a percent. I really need to learn how to invest.Do you just open a brokerage account?