what is the best investment right now ?

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so, I think there are so many unknowns going on right now. Obviously the presidential and senate/house elections . The virus, will it slow down...the vaccine, will it work ? What impact will Kanye have ? BLM and the peaceful protesters, the trillions of cash that the government is throwing into the economy, China etc,etc,etc....

I'm thinking of sitting on cash until the election is over and then put it all in the S&P, say, mid-November -no matter who wins- and letting it ride....I'm not sure there is any reason to take risk for the next 100 days......

What is your short term strategy, if any ?

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@shug23,

I'm very concerned about the stock market in the short term. I'm not sure what is propping it up except for government deficit spending.

In the last couple of years, we've seen the emergence of balanced index funds that do a much better job of managing risk and reward. These have more reward potential than the SP500 with lower risk because they balance a variety of investment classes and move money between them as they move relative to each other.

Here is an example. This one is aggressive but there are all sorts at different risk levels. https://www.ishares.com/us/products/239729/ishares-aggressive-allocation-etf

This is an article explaining the basic concept from 2006. https://www.npr.org/templates/story/story.php?storyId=6203264

Quote:

Yale University recently announced a 23 percent return on its investments, swelling its endowment to a whopping $18 billion. The man behind that investment success is David Swensen, one of the most gifted investors in the world. He's made an average 16 percent annual return over 21 years — better than any portfolio manager at any other university.

Nobody has numbers that good. Not at Harvard, Princeton, Stanford, or any foundation or pension fund; Swensen consistently beats them all. And recently, Swensen has become passionate about trying to teach individual investors how best to save for retirement.

For a long time, universities invested in a plain-vanilla mix of stocks and bonds. Swensen helped change that. He has built a portfolio with stakes in venture capital funds, real-estate partnerships, emerging market stocks and scores of small, specialized investment outfits. Any tiny market movement changes the balance of the whole thing.

So how does Swensen keep track of it all?

"I have a calculator," Swensen says with a chuckle. "And then I talk to one of my colleagues, who executes the trade. So it's decidedly low-tech."

I heard this article on the radio in 2006, switched to his philosophy in 2007 and it made a huge difference during the crash in 2007/2008. Now there are funds that do it all for you.

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yeah, I'm not really concerned about long term; I'm comfortable with my long term strategy......But suppose you have $X dollars in cash right this moment...call it 100,000, call it 1,000,000........would it be rational to accept any downside risk for the next 100 days ?

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@shug23,

Anything which you invest in has associated costs. Your 3 month time span incredibly short as far as investment goes.

In the 1990's I spent time working in the City of London then was in the far east .... These days as I am probably idle, I tend to buy into hard assets ... Gold, precious stones, watches, cars, art and anything else that looks profitable sooner or later.

There will always be the wealthy and the poor. The west is in general headed sharply for a great deal more relative poverty, in effect the same amount of money spent by fewer people. Government spends will in essence drop because of the lower taxation collection.

However, the wealthy always like to differentiate themselves from other wealthy people ... One does not do that by stacks of cash in the basement, unless one is a Drug cartel possibly .... So they like to put it into all the things which I invest in.

That's my take on it.

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@shug23,

The best investment right now - Stockpile Food, water and whatever you can get hold of to sustain you and who/whatever is of purpose to you.

Global food production, storage and distribution is about to vanish.

China have purchased 1.94mill cubic tonnes of US wheat 85% of your soy and legumes.

your calif-growbelt is about to be forcibly shut down & There's more.

You might want to pay more attention to REAL issues.
Here's a quick link - Enjoy & Learn.

https://youtu.be/MnKKeyhi_Wc

You might want to backtrack his material...?

Have a lovely Day

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@shug23,

The Best advice I could give would be to not take investment advice from strangers on the Internet. The second best advice I could give would be not to take advice from investment companies unless recommended by a friend or family member that is a good investor ( doesn’t lose tons of money).

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@engineer,

engineer wrote:

I'm very concerned about the stock market in the short term.

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