Good ideas and conversation. No ads, no tracking. Login or Take a Tour!
kleinbl00 · 2122 days ago · link · · parent · post: Ask Hubski: I just inherited $40,000 - what do I do?
Keep your powder dry. At this point I'd say 100% cash. If you take away the FAANG stocks, the Dow has been effectively flat for eighteen months... And even with the FAANG stocks, we hit a peak four months ago. Even the permabulls are going to cash right now. There isn't a lot of upside to be made and there's a lot of downside. Particularly with ETFs. Sell a mutual fund and you get what the basket can be sold for. Sell an ETF and you get what the ETF can be sold for, not its contents. ETFs have an illiquidity problem because they're effectively derivatives, not baskets... And nobody out there in Ma & Pa investorland is pointing that out.