I have a young relative (28) that just got into investing a year ago. He was killing it. During Thanksgiving he asked me for some general portfolio advice. He was overloaded on tech. I told him I was really concerned about giving advice since I thought the markets were top heavy and running on vapor.Wow. What good is money at 79? Hope there aren’t any 79 year olds on this forum reading that. Well, we will just disagree on this one. As a CFP, newbie or not, I’d recommend anyone with a 10 year time frame for some of their funds allocate it to the markets. And much better now than 2 months ago.
My thoughts were that the markets were at highs while the sh*tshow in DC was shutting down domestic fossil fuel production, giving free covid aid, inflation at record highs, feds pretending inflation wasn’t even present, Biden’s disastrous moves(got France to withdraw their US ambassador, Afghanistan withdrawal, Russia buildup along eastern Ukraine, 1.2 million illegals, covid shutdowns and forced vaccinations, record high crime, massive trillion dollar spending bills, schools shutdown, teachers union acting like nazis, etc).
he voted for Biden, so how do I politely tell him the markets are going to crash because he voted wrong? I can’t. So I advised him to sell a couple of his tech positions and get in energy and banking.
he’s done great in his energy position. However his banking position is modestly down, although it’s not getting crushed like the tech position he previously held. I thought 2022 would benefit the banking sector due to rate hikes.
I’ve been 100% divested from the markets since early November.
i will probably get back into the markets once traders and investors stop posting on investment sites. Financial beatings tend to make investors go dormant. They tune out.
I’ve been through numerous crashes. After the first one, I learned to go with my instincts and not be greedy.
the TV professionals have been saying buy, buy, buy these past few months. How has that helped?
as a point of emphasis… last year when Bitcoin was near $60k, some analyst on TV would pound the table every week saying Bitcoin would be at $100k by the end of 2021!!! The guy still gets airtime, but doesn’t mention Bitcoin any longer.
newbie investors often take their investing advice from strangers on tv. I do not want to set up a 59 year old for failure. Like I said before, if the OP wants to invest for fun/action, absolutely. But to recommend he take retirement money and risk it, is something I’ll never do.